Bill Overview
Title: End Subsidies for Fossil Fuel Advertising Act
Description: This bill denies a tax deduction for the marketing, travel, promotion, and other related expenses incurred by any person involved in the manufacturing, production, extraction, refining, transportation, distribution, or marketing of any fossil fuel.
Sponsors: Rep. Porter, Katie [D-CA-45]
Target Audience
Population: Individuals connected to the fossil fuel industry
Estimated Size: 100000000
- Fossil fuel companies engage in extensive marketing and promotional activities globally, often amounting to billions of dollars in expenditures.
- The removal of tax deductions for advertising could lead to higher operational costs for these companies.
- Fossil fuel companies are a major part of the global energy sector, impacting economies and workforce globally.
- Employees within the advertising sectors that work with fossil fuel companies may see changes in demand for services.
- Consumers worldwide rely on fossil fuels in their daily lives, and changes to advertising practices could impact consumer awareness and energy pricing in the long-term.
Reasoning
- Fossil fuel companies spend heavily on advertising, impacting employees in those sectors. Removing deductions could affect these jobs.
- The removal of these tax deductions could lead to higher costs, which might be passed to consumers in non-fossil fuel prices.
- The budget limits suggest targeted analysis on sectors most affected, such as advertising, rather than directly at consumer levels.
- Since the bulk of impact will be on advertising services, only a segment of the population in marketing and advertising will be surveyed.
Simulated Interviews
Petroleum Engineer (Houston, TX)
Age: 42 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- I don’t think this policy will impact my job directly, but if our marketing team is affected, it could reflect on the company's overall performance.
- We need to adapt to new regulations regularly; this is just another change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Marketing Consultant (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This could reduce the demand for my services if fossil fuel companies cut expenses on marketing.
- I may need to look for clients in other industries to keep my business stable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Freelance Graphic Designer (Los Angeles, CA)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- If marketing agencies cut back due to this policy, freelance work might dry up temporarily.
- I'll try to diversify my client base regardless.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
High School Teacher (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 20/20
Statement of Opinion:
- This policy provides a real-world example of government action on climate change.
- It might stimulate interest and discussion among my students.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Software Developer (San Francisco, CA)
Age: 38 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 17/20
Statement of Opinion:
- Energy companies might invest more in digital solutions to offset advertising losses.
- Positive impact on tech innovation within the energy sector.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Coal Miner (Huntington, WV)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- I’m unsure how directly this affects me, but anything reducing profits could dampen job security within the industry.
- There's talk of new sustainability investments instead.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Environmental Activist (Denver, CO)
Age: 27 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- Losing tax deductions might make fossil fuels less appealing; a win for environmental causes.
- This policy won't completely change industry dynamics, but it's a positive stride.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Oil Rig Worker (Seattle, WA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- My job doesn’t seem related to advertising, but external cuts could influence company health.
- I hope this leads to more investment in safer and cleaner technologies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Advertising Executive (Austin, TX)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- Potential decrease in ad spending by fossil fuel companies could affect my department's revenue.
- May need to seek opportunities with new clients outside the industry.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Small Business Owner (Des Moines, IA)
Age: 53 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 6.0 years
Commonness: 16/20
Statement of Opinion:
- If advertising costs rise, I'm worried this might lead to higher fuel prices, impacting my business.
- Will watch closely to see how the industry adapts to the policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $50000000 (Low: $30000000, High: $70000000)
Year 3: $50000000 (Low: $30000000, High: $70000000)
Year 5: $50000000 (Low: $30000000, High: $70000000)
Year 10: $50000000 (Low: $30000000, High: $70000000)
Year 100: $50000000 (Low: $30000000, High: $70000000)
Key Considerations
- Denial of tax deductions will increase operational costs for fossil fuel companies, potentially influencing their marketing strategies.
- Potential impacts on advertising industry employment could vary depending on how companies adjust their marketing budgets.
- The policy might indirectly encourage shifts toward cleaner energy sources as part of broader economic adjustments.
- There may be political and public relations ramifications with consumers and advocates of the fossil fuel industry and climate action groups.