Senate Bill Would Allow Tax-Exempt Status for Newspapers

Editor and Publisher ^ | March 24, 2009 1:08 PM ET | Mark Fitzgerald

[Red Steel]

CHICAGO Newspapers perform a public service for democracy and should be allowed to operate as tax-exempt non-profits, U.S. Sen. Benjamin Cardin, D.-Md., proposed Tuesday.

Cardin introduced a bill that would explicitly include newspapers among organizations eligible for 501(c)(3) status. The non-profit status is the same that public radio and television have now.

The legislation would give a national green light for newspapers to adopt the so-called Low Profit Limited Liability Company business model, often shortened to L3C.

The L3C model, which the Newspaper Guild supports as an alternative newspaper ownership model, is the subject of a feature story in the current print issue of Editor & Publisher.

Under Cardin's legislation, newspaper revenue would be tax-exempt, and contributions to papers would be tax deductible. The status would also allow non-profits to invest in newspapers, something that is forbidden now.

Cardin said action is needed to help preserve local newspapers.

"We are losing our newspaper industry," Cardin said in a statement. "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."

The Associated Press quoted him as saying on the Senate floor, "As local papers are closing, we're losing a valuable tradition in America -- critically important to our communities, critically important to our democracy."

Newspapers that accept non-profit status would not be allowed to endorse candidates, but they could cover political news just as they do now, Cardin said.

[Red Steel]

Hey why not since the New York Slimes et al perform beneficial propaganda for us Dems in Gooberment. Time to bailout and payoff.

[Zuben Elgenubi]

Oh, what a tangled web we weave . . .

[Danae]

Yeah, then the Government can legitimately say the Newspapers are all working for them! They are already doing it, now they will be able to talk about it in the open!

/sarc

[Robe]

Just combine them all and call it “Pravda USA”

[Da Coyote]

Obamaloon s**t! We pay taxes...THEY PAY TAXES.

The revolt is coming, dhimmis. Count on it.

[dblshot]

So they can throw their trash in my driveway at an even cheaper cost to them. I don't even pull the Galveston News out of the plastic bag, just strait to to the garbage can. On the good side though it gives my lab something to retrieve.

[dforest]

That ain’t sarcasm, it is a fact.

[Graybeard58]

Just when I think congress people can’t get any dumber, one of them proves me wrong.

[Slapshot68]

Newspapers are suffering through unprecedented LOSSES...not sure how making them tax-exempt helps keep them alive. lol

[facedown]

Newspapers that accept non-profit status would not be allowed to endorse candidates, but they could cover political news just as they do now, Cardin said.

The punch line to this joke.

[Ev Reeman]

Government moving to control all newspapers? Sounds very very unconstitutional to me.

[EdReform]

BTTT

[edcoil]

There is one rule that they cannot announce any support of a political candidate - of course all the stories can.

[buffyt]

Life in OBAMANATION just gets curiouoser and curiouser...
as they said in Alice in Wonderland.....

[listenhillary]

Government could then threaten reviews of organizations 501(c)(3) status.

[longtermmemmory]

well if NEWSPAPERS can endorse candidates and be nonprofit then ANY non profit should be equally unchained.

[Hardastarboard]

I’m no tax genius here, but if you’re losing money, you don’t pay taxes anyway. What good does tax exempt status do for them?

[Osage Orange]

"We are losing our newspaper industry," Cardin said in a statement

And WE are losing our country.....What's more important, Senator!?!?!?!?

[buffyt]

GOOD POINT!!!!!!!!!!!!!!

[buffyt]

The Fairness Doctrine isn’t about “Fairness” - it’s about Doctrine - and indoctrination!