Wednesday, March 25, 2009

Update: Senator Cardin Introduces Newspaper Revitalization Act

How do you save a business that's lost its ability to generate profit?

According to Maryland Senator Ben Cardin, you re-classify it as a Non-Profit. Cardin introduced bill S.673, also known as the, Newspaper Revitalization Act, which would reclassify newspapers as Non-Profit Organizations.

Title: A bill to allow certain newspapers to be treated as described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code.
 

Currently, Cardin's bill has one co-sponsor: Barbara Mikulski, of Maryland. Under the bill, advertising and subscription revenue would be tax exempt, and contributions to support news coverage or operations could be tax deductible. The catch: Newspapers wouldn't be allowed to officially endorse a political candidate.

Here's the most interesting aspect of Cardin's bill- it's aimed at preserving local and community papers, not conglomerates which also own radio and TV stations. Cardin's bill comes only one week after House Speaker Nancy Pelosi urged government intervention to save the faltering newspaper industry. Rueters' article included this quote from Cardin:

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.

As a former contributor to print media, I appreciate the intent of Cardin's bill, but I believe it leaves too much room for interpretation i political matters. A ban on official endorsements won't ensure unbiased and balanced coverage of political candidates and legislative affairs.

Posted By Matt O'Hern at 11:16 AM
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