The “Newspaper Revitalization Act” was introduced this week by Senator Benjamin Cardin, a Democrat from Maryland.
“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. It is in the interest of our nation and good governance that we ensure they survive” said Senator Cardin.
The act would grant newspapers tax-free status as non-profits, a deal similar to that enjoyed by public broadcasting outlets, which survive on tax-deductible contributions from listeners. The newspapers, however, will also be able to enjoy tax free advertising revenue.
Is it really in the interest of our nation to bailout the newspapers?