UPDATE March 25th: James Taranto at WSJ’s best of the web picks up on the same “affirmative action” smell associated with this proposal.
The danger of the Cardin bill lies in the restrictions that already apply to nonprofits–a concern one media lawyer voices in an interview with Southern Maryland Online:
“I think it really puts the role of censor or critic with the IRS,” said George Rahdert, legal counsel for the St. Petersburg Times. “So the IRS would be able to say, ‘This isn’t fair or critical reporting.’ “
Sen. Benjamin Cardin (D-MD) has introduced his Newspaper Revitalization Act today (not yet available on GovTrack) – an effort to bail out specific newspapers.
First up is the Reuter’s version.
With many U.S. newspapers struggling to survive, a Democratic senator on Tuesday introduced a bill to help them by allowing newspaper companies to restructure as nonprofits with a variety of tax breaks.
“This may not be the optimal choice for some major newspapers or corporate media chains but it should be an option for many newspapers that are struggling to stay afloat,” said Senator Benjamin Cardin. [Mata added: (D-MD)]
A Cardin spokesman said the bill had yet to attract any co-sponsors, but had sparked plenty of interest within the media, which has seen plunging revenues and many journalist layoffs.
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.
Advertising and subscription revenue would be tax exempt, and contributions to support news coverage or operations could be tax deductible.
~~~Cardin’s office said his bill was aimed at preserving local and community newspapers, not conglomerates which may also own radio and TV stations. His bill would also let a non-profit buy newspapers owned by a conglomerate.
The Seattle Post-Intelligencer adds a bit more info.
Cardin said his proposal may not be the best choice for some major newspapers, but “should be an option for many newspapers that are struggling to stay afloat.”
Speaking on the Senate floor, Cardin added, “As local papers are closing, we’re losing a valuable tradition in America – critically important to our communities, critically important to our democracy.”
The head of the newspaper industry’s trade group called the bill a positive step.
John Sturm, president and chief executive officer of the Newspaper Association of America, said the proposal “recognizes changes in the law might be necessary to provide a boost to newspapers trying to weather this difficult economic period.”
He agreed with Cardin that his approach may not work for all newspapers, but said the legislation is a starting point for discussions already under way on ideas to help the industry.
The association is a nonprofit organization representing the $47 billion newspaper industry and more than 2,000 newspapers in the United States and Canada.
Reports of layoffs and furloughs at newspapers around the country have become common in recent months. Gannett Co., which publishes 85 daily newspapers, announced Monday that it was asking most of its 41,500 employees to give up a week’s pay for the second time this year. The same day, Advance Publications, which publishes daily papers in nearly two dozen cities, said it was ordering 10-day furloughs and a pension freeze at nearly all its daily newspapers.
The Post-Intelligencer, itself, is struggling. It’s owner, Hearst Corporation, put it up for sale
early January, saying if they couldn’t find a buyer in 60 days, they would either close the media, or go digital format only. Oddly enough, the Seattle PI would not be able to take advantage of the legislation if passed under it’s current owner since Hearst owns TV stations as well.
The Post Intelligencer is, however, one stellar opportunity for Obama’s “affirmative action” media ownership. ala the Dick “turban” Durbin Amendment to the recently passed Omnibus… a back door stealth fairness doctrine law done Obama-style. The Seattle PI could be purchased by a minority, and then run as a non-profit.
How coincidental that all this falls so neatly into place under the radar, eh?
Cardin says the financial repercussions of the status change would have little fiscal effect since the businesses were not profitable anyway. Then again, this could lead to a sell off to minorities under the Durbin Amendment. Then we’d have to wonder if the taxpayer will subsidize those purchases, as we are the toxic assets under the Public-Private Investment plan.
What will remain of most interest to me is to see how the print media themselves respond to such a bill. Especially if it will then pit those that are struggling, and have no avenue to become tax exempt/non profits, against others.
Vietnam era Navy wife, indy/conservative, and an official California escapee now residing as a red speck in the sea of Oregon blue.
If anyone wants to know how this could end up, do some research on the newspaper Zvezda.
Jeff V
I’d like to see the clowns in media try to comply with the requirements of a 501c tax exemption. They’ll get busted every week.
O’Dumbo traded in his teleprompters (might have been the neck pain from the last time he was on TV), His head swiveled like a mouse watching a copperhead. Maybe he thought (not all that smart you know) that no one would notice the answers popping up on the big screen TV in front of him. How dumb is he, really?
How would this change the fact that the newpaper is becoming obsolete? Why does our country need to spend more money on something that can be so easily replaced?
Another form of “community organizing”, playwithfire… The bill targets “local community papers” most especially.
One way to view it…. Sell it out to a non-profit minority, it’s a local ACORN rag with government tax breaks, working over the ‘hood to spread Obama’s agenda.
@playwithfire: Kind of like the auto bailouts. Gotta keep the old business model alive. It’s a nostalgia thing.
More like the “Fishwrapper Revitalization Act” and as far as being “non-profit”, the NYT has been operating at a loss for years!
ummm, does anybody think this is what the First Amendment means, government runs the free press?
OH SUH-WHEAT! Flopping Aces is non-profit. Maybe if we publish something in print we can get a bailout!!!!!!!!!!
All Things Considered, we have already spent toooo much taxpayer dollars on so-called news organizations. Can you imagine the appointment of Bill Moyers or Nina Totenberg as a News Czar in Obama’s new Shadow Administration should this ever go through?
It seems that the community organizer has all his ducks in a row and a congress critter here and there eagerly carrying the ball down the field for him as he plots his next play.
BIG MEDIA trying to get govt subsidies for their corruption, mismanagement and non-profitability.
I don’t see govt control increasing, because many of these half-dead newspapers are cheerleaders and bootlickers for extreme liberalism anyway.