Monday, March 30, 2009

Senator proposes nonprofit status for newspapers

By LARRY MARGASAK

WASHINGTON (AP) — Struggling newspapers should be allowed to operate as nonprofits similar to public broadcasting stations, Sen. Benjamin Cardin, D-Md., proposed Tuesday.

Cardin introduced a bill that would allow newspapers to choose tax-exempt status. They would no longer be able to make political endorsements, but could report on all issues including political campaigns.

Advertising and subscription revenue would be tax-exempt, and contributions to support coverage could be tax deductible.

Cardin said in a statement that the bill is aimed at preserving local newspapers, not large newspaper conglomerates.

"We are losing our newspaper industry," said 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."

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.

http://www.google.com/hostednews/ap/article/ALeqM5jU0bBG87YCT3T3qKx-PqEUY84MLAD974H1O82

Sphere: Related Content

No comments:

Blog Archive

Subscribe via email

Enter your email address:

Delivered by FeedBurner

Search This Blog

Subscribe Now: standard

Add to Technorati Favorites