Danger: Obama Considers Non-Profit Status For Newspapers. Why?
Want to start paying for newspaper access online? Don't say "no" until you consider the alternative — a government takeover of this troubled industry. Impossible? Then why this week, did President Obama say he would support tax breaks for newspapers as long as they restructure as non-profits? Sounds like a subtle, back door, socialistic approach of some kind to me! I don't believe that Obama or the 'progressive' Congress would give tax breaks to our free press without wanting something in return — and logic says that would be in the form of government regulation which we already know leads to government control.
Step 1 - control the financial institutions.
Step 2 - control the press.
Step 3 - control our behavior through taxes, fees, sur-charges and penalties.
Life as we know it could soon be over.
Its not just the economy that has sent newspapers tumbling. Advertisers and subscribers have been going elsewhere for some time. Why? The Internet offers instant news gratification and exposure to news around the world. Like the post office, publishers and managing editors have been slow to offer something exclusive and unique in print while they evolved into the digital world. Print has lost substance. In depth, exclusive reporting is a lost art for the most part. Star columnists exclusive to a particular paper have all but disappeared. There is almost nothing in print that you can't get online. Circulation drops and ad rates climb.
Metropolitan newspapers and large news groups are not faring as well as suburban papers that have a unique character and provide important local news and information. The organization, Suburban Newspapers of America says that ad revenue at community papers was off 12.4% in the second quarter compared to a year ago, but major metros saw declines of 29%. Community papers are also seeing earlier slowing of the rate of decline. Several newspapers like The Rocky Mountain News, The Baltimore Examiner and The Cincinnati Post have published their last issues. If this is to remain a free society, newspapers have to be allowed to sink or swim regardless of the economy and the Internet.
So when will you start paying for online access? A thousand newspapers and magazines have signed affiliate agreements with Journalism Online LLC, a company that will start charging consumers for access to online content this fall. According to The American Press Institute, 60% of U.S. newspapers are considering paid access or some kind or "freemium" plans that offer a combination of free and paid content. Google is working on a pay system but there is a rift between papers and the search engine over the cannibalization of content.
Successful evolution takes time and we are an impatient society and doomsday will come sooner rather than later if government gets any kind of control of news.
More proof of attemps to change the free press is a bill already introduced by Sen. Ben Cardin (D-Md.) . S. 673, the "Newspaper Revitalization Act," that would give journalistic companies tax deals if they were to restructure as 501(c)(3) corporations. So far, Cardin's Maryland colleague, Sen. Barbara Mikulski (D) is the only co-sponsor.
The bill says "...amend the Internal Revenue Code to exempt from income taxation a newspaper corporation or organization if: (1) it publishes on a regular basis a newspaper for general circulation; (2) its newspaper contains local, national, and international news stories of interest to the general public and the distribution of such newspaper is necessary or valuable in achieving an educational purpose; and (3) the preparation of the material contained in such newspaper follows a methodology generally accepted as educational."
What does "educational purpose" mean and heaven help us, what non-elected official will be appointed to determine that? Furthermore, the bill allows a charitable tax deduction for contributions to such newspaper organizations. That's an open invitation to abuse a once proud element of our checks and balances. "I give you $100,000 that I don't have to pay taxes on and you give me 100,000 words supporting my cause." Although non-profit status would prevent newspapers from endorsing a candidate, a government who doesn't think fraud is a very important issue, could encourage other means. Do you get it yet?
Suddenly, paying for online news doesn't sound like such a bad idea, does it? Competition will be encouraged. Innovative publishers with high standards and new and exciting formats will succeed. Others will fail and so be it. Expect costs per online subscription to vary widely from $3 to $5 a week and $5 to $6 a month, more or less. In many cases, there will be combo rates for print and on-line access. Some papers already charge for some of what they offer digitally like the Daily Gazette in Schenectady, New York, the Newport Daily News in Newport, R.I. and the Arkansas Democrat-Gazette in Little Rock.
Now that I think about it, the return to coffee in the morning with a newspaper in hand is a real temptation.
Step 1 - control the financial institutions.
Step 2 - control the press.
Step 3 - control our behavior through taxes, fees, sur-charges and penalties.
Life as we know it could soon be over.
Its not just the economy that has sent newspapers tumbling. Advertisers and subscribers have been going elsewhere for some time. Why? The Internet offers instant news gratification and exposure to news around the world. Like the post office, publishers and managing editors have been slow to offer something exclusive and unique in print while they evolved into the digital world. Print has lost substance. In depth, exclusive reporting is a lost art for the most part. Star columnists exclusive to a particular paper have all but disappeared. There is almost nothing in print that you can't get online. Circulation drops and ad rates climb.
Metropolitan newspapers and large news groups are not faring as well as suburban papers that have a unique character and provide important local news and information. The organization, Suburban Newspapers of America says that ad revenue at community papers was off 12.4% in the second quarter compared to a year ago, but major metros saw declines of 29%. Community papers are also seeing earlier slowing of the rate of decline. Several newspapers like The Rocky Mountain News, The Baltimore Examiner and The Cincinnati Post have published their last issues. If this is to remain a free society, newspapers have to be allowed to sink or swim regardless of the economy and the Internet.
So when will you start paying for online access? A thousand newspapers and magazines have signed affiliate agreements with Journalism Online LLC, a company that will start charging consumers for access to online content this fall. According to The American Press Institute, 60% of U.S. newspapers are considering paid access or some kind or "freemium" plans that offer a combination of free and paid content. Google is working on a pay system but there is a rift between papers and the search engine over the cannibalization of content.
Successful evolution takes time and we are an impatient society and doomsday will come sooner rather than later if government gets any kind of control of news.
More proof of attemps to change the free press is a bill already introduced by Sen. Ben Cardin (D-Md.) . S. 673, the "Newspaper Revitalization Act," that would give journalistic companies tax deals if they were to restructure as 501(c)(3) corporations. So far, Cardin's Maryland colleague, Sen. Barbara Mikulski (D) is the only co-sponsor.
The bill says "...amend the Internal Revenue Code to exempt from income taxation a newspaper corporation or organization if: (1) it publishes on a regular basis a newspaper for general circulation; (2) its newspaper contains local, national, and international news stories of interest to the general public and the distribution of such newspaper is necessary or valuable in achieving an educational purpose; and (3) the preparation of the material contained in such newspaper follows a methodology generally accepted as educational."
What does "educational purpose" mean and heaven help us, what non-elected official will be appointed to determine that? Furthermore, the bill allows a charitable tax deduction for contributions to such newspaper organizations. That's an open invitation to abuse a once proud element of our checks and balances. "I give you $100,000 that I don't have to pay taxes on and you give me 100,000 words supporting my cause." Although non-profit status would prevent newspapers from endorsing a candidate, a government who doesn't think fraud is a very important issue, could encourage other means. Do you get it yet?
Suddenly, paying for online news doesn't sound like such a bad idea, does it? Competition will be encouraged. Innovative publishers with high standards and new and exciting formats will succeed. Others will fail and so be it. Expect costs per online subscription to vary widely from $3 to $5 a week and $5 to $6 a month, more or less. In many cases, there will be combo rates for print and on-line access. Some papers already charge for some of what they offer digitally like the Daily Gazette in Schenectady, New York, the Newport Daily News in Newport, R.I. and the Arkansas Democrat-Gazette in Little Rock.
Now that I think about it, the return to coffee in the morning with a newspaper in hand is a real temptation.






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