Wednesday, March 25, 2009

Newspaper Revitalization Act

This newspaper bailout bill proposed by Senator Benjamin Cardin, which would allow qualified newspapers to be exempt from taxes, makes me wary.
Cardin's Newspaper Revitalization Act would allow newspapers to operate as nonprofits for educational purposes under the U.S. tax code, giving them a similar status to public broadcasting companies.

Under this arrangement, newspapers would still be free to report on all issues, including political campaigns. But they would be prohibited from making political endorsements.
The bill defines qualifications for newspapers to receive the tax break:
(1) the trade or business of such corporation or organization consists of publishing on a regular basis a newspaper for general circulation,
(2) the newspaper published by such corporation or organization contains local, national, and international news stories of interest to the general public and the distribution of such newspaper is necessary or valuable in achieving an educational purpose, and
(3) the preparation of the material contained in such newspaper follows methods generally accepted as educational in character.
Senator Cardin's heart seems to be in the right place, but proposing this bill suggests a lack in understanding of the fundamental implications of government-supported print, the medium that currently enjoys the most First Amendment protection and least governmental control.
"We are losing our newspaper industry," Cardin said. "The economy has caused an immediate problem, but the business model for newspapers, based on circulation and advertising revenue, is broken, and that is a real tragedy for communities across the nation and for our democracy."
True, but consider the costs. For example, would this bill passing necessitate establishing an FCC-like organization for print? The vagueness of the language describing newspaper qualifications is another problem--how easy would it be for the government to deem a newspaper no longer significantly "educational" and take away a its nonprofit status? Newspapers should not have to choose between staying in the black and providing independent coverage.

Thoughts?

via LIB

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