Government Trying to Revitalize Newspapers?

The government really wants to save newspapers, or at least some of its members do. The other day we told you about how Attorney General Eric Holder was consider loosening anti-trust laws to allow newspapers to band together. Now comes word that Senator Benjamin Cardin wants to introduce something called the Newspaper Revitalization Act, which is a bill that will allow “newspaper companies to restructure as nonprofits with a variety of tax breaks.” (Sort of sounds like a job for Schoolhouse Rock to tackle!)

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.

Says Cardin: “We are losing our newspaper industry…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.

Exactly! The business model is broken, so best to figure out a new and sustainable one based on the reality of the Internet, no? Stay tuned.

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