Because most clients operate on a fixed advertising budget, they will compensate for the tax by decreasing their advertising purchases. This will have a direct and negative impact on the advertising industry, economy, consumers and the state. Advertising is the primary source of revenue for the print media and the sole source for broadcasters. A reduction in advertising would inevitably result in a loss of jobs and a decreased ability to provide quality content and programming. Advertising is the engine that fuels the economy.
Less advertising means fewer sales.
Fewer sales mean reduced revenue and fewer jobs. Fewer sales also result in less sales tax revenue for the state. Consumers will suffer. Advertising is an important source of information. In fact, the U.S. Supreme Court in the landmark Virginia Pharmacy case noted that to many people, the information in advertising is more important than news about current issues.