VAPPA is proud to work with PPAI to advocate for our industry and our members. Each year VAPPA participates with PPAI's Legislative Education and Action Day (L.E.A.D.) This event delivers the promotional products industry's message to Capitol Hill. Each year, VAPPA volunteers join industry professionals and travel to Washington D.C. to educate members of Congress about the effectiveness of promotional products and the strength of the industry in the U.S. You can volunteer to get involved with L.E.A.D, be on the lookout from PPAI in October for a chance to apply. In the meantime you can become a grassroots volunteer. Click here to learn more.
VIRGINIA PROMOTIONAL PRODUCT INDUSTRY REVENUE STATISTICS
Promotional Products Industry State Statistics* Reseller (Distributor) Sales Revenue: $ 270.6 Million
Manufacturer (Supplier) Sales Revenue: $ 69.6 Million
Total Promotional Products Companies: 731
VAPPA @ L.E.A.D.
Promotional Products Work! Week, lead up to Legislative Education and Action Day (L.E.A.D.) in Washington, D.C. on April 26 and 27. Team Virginia joined industry leaders from across thecountry will be meeting with members of Congress and legislative staff to discuss the issues that matter most to the promotional products industry.
The issues discussed this year included the following:
# 1 Promotional Products Work
- There are more than 34,000 promotional products companies in the United States, generating nearly $21 billion in annual revenues and employing more than half a million Americans.
- Promotional products are logoed or imprinted items that educate, recruit, highlight safety awareness, urge organ donations and encourage healthy living and lifestyle choices.
- Congress must keep the unique needs, challenges and interests of the promotional products sector in mind when considering legislation that could hamper the success of this dynamic business sector.
#2 Proposed Border Adjustment Tax Will Harm the Promotional Products Industry
- The U.S. House tax reform proposal includes a recommendation to adopt a Border Adjustment Tax (BAT). The BAT poses a discriminatory tax on all imported products—including promotional products—and will hurt American consumers and the nation’s largest employers by increasing the cost of everyday products.
- While most promotional products are manufactured overseas, once in the U.S., these products are decorated by U.S. workers. They are sold by U.S. workers. They are used to promote U.S. goods and services.
- Please reject the misguided border adjustment tax and instead focus on tax reform that doesn’t come at the cost of consumers.
#3 Independent Contractors: Preserve Section 530 or Safe Harbor Rule of the Revenue Act of 1978
- Promotional consultants remain independent because they can set their own hours, run a business as their own, decide their own career path, be active in family and community, and pay their own way, among other incentives.
- Altering the safe harbor and not updating the tax code would adversely impact the entire promotional products industry.
- We want Congress to modify the tax code to treat promotional product IC’s the same as direct sellers
#4 Advertising Expenditures: No Current Legislation
- Advertising expenses are one of the most common deductions for a business. These expenses are currently 100% deductible in the year the expenditures are incurred. Businesses that utilize promotional products typically have targeted and immediate advertising purposes.
- Unfortunately, recent tax reform proposals would allow only 50% of advertising expenses to be deducted in the current year, with the remaining 50% amortized over five years
Members not visiting Washington were asked to support the efforts of L.E.A.D. by participating in virtual fly-ins each day during the week of April 24. Each day had a specific message to share with elected officials. These included: