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Senator Proposes Nonprofit Status For Newspapers

The AP is reporting that a senator has introduced legislation that would allow struggling newspapers to operate as nonprofits, similar to the way public broadcasting works. "[Sen. Benjamin] Cardin [D-Md.] 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. ... The head of the newspaper industry's trade group called the bill a positive step."

28 of 426 comments (clear)

  1. 1st Amendment? by DoofusOfDeath · · Score: 4, Insightful

    So in the US, we have the 1st Amendment which says this: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; ..."

    It seems to me that what this law would do is give a competitive advantage to those newspapers that avoid endorsing candidates.

    Isn't that abridging the freedom of the presses that want to make political statements endorsing candidates? It basically says, "Don't make political endorsements, or else we'll tax you."

    1. Re:1st Amendment? by guyminuslife · · Score: 4, Insightful

      I would agree with you, but there's already a lot of precedent for this.

      For instance, churches are already tax exempt. (Apparent First Amendment violation number one.) But they are legally prohibited from making political endorsements, or risk losing their tax exempt status. (Apparent First Amendment violation number two.) As with all nonprofits organizations.

      A lot would have to change for this to be considered unconstitutional.

      --
      I don't believe in time. It's a grand conspiracy designed to sell watches.
    2. Re:1st Amendment? by LoverOfJoy · · Score: 4, Insightful

      The risky thing here is that newspapers practically need to cover political issues while most religions are fine staying out of political issues except when something covers what they see as a moral issue.

      So what happens when the government decides a newspaper is a little too biased in their reporting and claim that it's endorsing another candidate? Will the press have to censor themselves to avoid appearing like an endorsement?

    3. Re:1st Amendment? by langelgjm · · Score: 4, Insightful

      Isn't that abridging the freedom of the presses that want to make political statements endorsing candidates? It basically says, "Don't make political endorsements, or else we'll tax you."

      Not really, because the assumption is that everyone deserves to be taxed. Not being taxed is the exception - it's a special privilege, and if you want that status, you are required to do certain things.

      --
      "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
    4. Re:1st Amendment? by TinBromide · · Score: 4, Insightful

      Its the opposite. The government is not punishing any existing newspapers that wish to continue to endorse candidates, instead, they're providing a reward for news papers that wish to return to reporting news instead of making it.

      --
      Is it sad that I am more likely to recognize you and your posts by your sig than your name or UID?
    5. Re:1st Amendment? by inviolet · · Score: 3, Insightful

      Its the opposite. The government is not punishing any existing newspapers that wish to continue to endorse candidates, instead, they're providing a reward for news papers that wish to return to reporting news instead of making it.

      Suppose you are the Salt Lake Tribune, and you want to continue as a regular newspaper, in which event you will be taxed. And suppose that your competitor, the Deseret News or whatever, chooses tax-exempt status and hence gets a 20% 'reward'.

      Do you think you'll be able to compete with that for long? How are you able to believe that in this situation, the government is "not punishing" your Salt Lake Tribune?

      There is no way to turn the sow's ear of preferential tax breaks into a silk purse of "fair economic controls" or "level playing field" or "reward Paul without punishing Peter".

      --
      FATMOUSE + YOU = FATMOUSE
  2. Re:What a good idea by commodore64_love · · Score: 4, Insightful

    >>>A somewhat more balanced media is in everyone's interest.

    Yes it is, but "balanced reporting" is a myth. The reporters allow their own biases to sneak-into the articles. Not on purpose of course, but just as a natural consequence of being human. For example if you asked me to report on the Democratic Convention, it would probably be very negative since I don't like big-government parties. Vice-versa if I did a Libertarian Convention article, it would probably end up being a fluff piece. It's just natural bias.

    I prefer reporters be honest about their views, even if those views are slanted, rather than pretend to be unbiased, which is a falsehood. Nobody is unbiased.

     

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  3. BS by Anenome · · Score: 3, Insightful

    That's bullshit, if a news organization cannot survive in the market it doesn't deserve to exist. We don't need another NPR-style organization. News is not Sesame St. for adults. The papers are facing the 21st century with a 19th century technology, WHAT DID THEY THINK WAS GONNA HAPPEN? Meanwhile, New York Times still makes me laugh every time someone links to it and it asks for registration, BS, I close the window right there. Drudge is 21st century news, adapt or die.

    --
    "I Don't Have Enough Faith to be an Atheist"
    1. Re:BS by Daniel+Dvorkin · · Score: 5, Insightful

      Drudge is 21st century news, adapt or die.

      In case you didn't notice, Drudge and his host of imitators are news aggregators, not reporters. The stories they link too have to come from somewhere. If all the old line, stale, MSM news outlets that people love to bitch about closed up shop, the blogosphere would have precious little to do.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  4. Balanced media by qbzzt · · Score: 4, Insightful

    The newspapers are not making money now, so having their advertising and subscription revenues tax exempt won't matter. The big difference would be they'd be able to get tax deductible donations.

    Why do you think soliciting donations will make the media more balanced? As the mayor of Corruptville, I of course realize that we need balanced reporting in our fair town. I will even donate some of my embezzled funds towards that end - as long as the newspaper doesn't tell anybody about my embezzlement.

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    -- Support a free market in the field of government
  5. The best part of Capitalism by Syncerus · · Score: 3, Insightful

    The best part of Capitalism is letting bad business fail. If the newspapers can't fund themselves legitimately through voluntary commerce, like any other business, they need to fail, as they deserve.

    With tax-exempt status, they exists solely at the mercy of government legislation. What are the chances they will criticize the government that grants them favored status?

    This is a recipe for State control of news dissemination.

    --
    "Man is nothing without the works of man" -- Helvetius
    1. Re:The best part of Capitalism by bigstrat2003 · · Score: 3, Insightful

      The best part of Capitalism is letting bad business fail.

      If the bailouts Congress has been handing out so freely haven't convinced you that we aren't really in a capitalistic society any more, nothing ever will. We're running an unholy union of capitalism and socialism right now, and I really wish we'd pick one of the two and stick with it. As it is, we get the drawbacks of both, and the benefits of neither.

      --
      "16MB (fuck off, MiB fascists)" - The Mighty Buzzard
  6. Re:What a good idea by bravo369 · · Score: 5, Insightful

    I don't think balanced reporting is a myth, it just doesn't seem to exist anymore. It's supposed to be a news column, not an editorial. To use your example about reporting on the Democratic convention, why would it be so hard to report who was there, sequence of events, and what the person said. whether you agree with it or not shouldn't play any part in doing your job as a news reporter. What one side considers a joke the other side considers an insult..example being the 'lipstick on a pig' comment during the election. The quote should be in the NEWS article and the editorial should give the viewpoint that it was insulting or whatever they want to say. and yes it can be a natural bias that creeps through but then shouldn't the editor be demanding the reporters stick to the facts. if not then what good are they.

  7. Re:What a good idea by SatanicPuppy · · Score: 5, Insightful

    The thing is, if you give up trying to be unbiased, you get Fox News.

    Even if it is a mostly unattainable goal, it's better to try and deliver an unbiased product.

    I do admit, it'd be nice if a reporter would be open about their bias right from the start. The nice thing about the web (if any papers transitioned to it correctly, which, of course, none have) is that you could make that sort of information available in a reporters bio. Trusting your news source is important; nobody has time to fact check all their news.

    --
    ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  8. Desperation effort by Animats · · Score: 5, Insightful

    You have to realize how desperate the newspaper industry has become. The Seattle Post-Intelligencer printed their last paper edition last week. They're just a web site now, and they distribute their news via Twitter. That's how far down they've come. The Detroit Free Press only prints on Thursday, Friday, and Sunday now. The San Francisco Chronicle may go next.

    And those were once Great Metropolitan Dailies. Little papers go under every day.

    Nothing is really replacing them. Blogs are mostly punditry; few have paid reporters. If anything, the future may be TV news presented via the Web. TV news has historically been time-limited, but that's not a Web problem.

    1. Re:Desperation effort by BitZtream · · Score: 3, Insightful

      Maybe they never should have been dailies in the first place? Perhaps the fact that they are now only printing when there is enough there to print is a GOOD THING. Now they aren't wasting several thousands of trees daily to print fluff that no one actually gave a flying fuck about in the first place other than the person who wrote it and the company that is trying to justify to people why the need to buy a daily subscription.

      There really isn't THAT much news in the world that people NEED to know about, even less that people care about, far less still that people will actually bother to read about.

      You seem to think that the newspapers were 'needed' before and 'needed to have daily issues'. I suggest that the need was far less than you think and was nothing more than a way for them to take in more advertising and subscription revenue.

      They are failing for the same reason the record industry is. They were pushing bullshit product that people didn't actually want for more than people wanted to spend, but there were basically no alternatives. Newspapers were virtual monopolies in most towns, only larger ones had multiples. Something else came along and people realized they didn't have to subscribe that that bullshit monopoly anymore, now rather than adapt and cut their ridiculous costs and move on to the next stage, they are whining and dieing.

      Its not because we don't need/want the news. Its because the people running these businesses and the employees working for them are incapable of changing. The lack of ability to change to your environment means you either have to move to a different environment or you die. The employees at newspapers that can adapt will move on. The editors, reports and management that can't, will die with their newspaper.

      --
      Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
  9. Re:What a good idea by Sigismundo · · Score: 4, Insightful

    I think that bias creeps in most often in the form of omission. To continue with the Democratic convention, for example, someone who supports the Democratic party may choose not to report so much on the protesters outside the venue, or place this coverage closer to the end of the article. Newspaper articles are limited in length, so only the "most significant" information makes it in. Often the selection of what is important (by the reporter or his editor) allows for bias to creep in, however unintentionally.

  10. Re:There should be no nonprofits by vertinox · · Score: 3, Insightful

    If the tax system was fair in the first place, no loopholes would be needed. Income tax is really unlawful. It punishes productivity and penalizes saving.

    Umm... Arguably, without taxes and nothing backing the US dollar, inflation would spiral out of control and that would really punish savers.

    Arguably, income tax is preferable over spending tax, because if you reward saving too much you end up with a deflationary death spiral which is what caused the great depression and would still punish people who saved their money because they'd probably be unemployed and have to spend those savings.

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
    -Sigismund, Holy Roman Emperor (1368-1437)
  11. Re:What a good idea by Hordeking · · Score: 4, Insightful

    The thing is, if you give up trying to be unbiased, you get Fox News, or CNN, or MSNBC, or Pravda.

    Fixed that for you. Bias doesn't just swing to the right. A major complaint of a lot of people is that most of the media bias seems to be to the left.

    --
    Disclaimer: The opinions and actions of the US Gov't are in no way representative of those held by this author or its ci
  12. Re:Only hindering the inevidible. by SatanicPuppy · · Score: 3, Insightful

    The problem is, the online news services are all leaching off the traditional media for their content.

    I'm actually looking forward with mild amusement to the panic when the flow of content from the big boys ceases.

    --
    ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  13. Re:What a good idea by SatanicPuppy · · Score: 5, Insightful

    Dude, their slogan is "Fair and Balanced." I admit they're not trying to be unbiased, but they are definitely trying to pretend like they're unbiased, which is the worst of all worlds.

    --
    ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  14. Re:What a good idea by _Quinn · · Score: 5, Insightful

    I can't resist: that's because reality has a well-known liberal bias. ;)

    --
    Reality Maintenance Group, Silver City Construction Co., Ltd.
  15. Nonprofit: Tax-exempt v. tax-deductible-for-donors by DragonWriter · · Score: 3, Insightful

    I am not 100% sure on this, but don't churches and other nonprofits have to avoid explicit endorsements too to retain their nonprofit status?

    Nonprofit isn't a single status. Certain nonprofits to which donations are tax-deductible for the donor have to avoid "substantial involvement" in politics, including explicit endorsements, to retain that particular status (Particularly, 501(c)(3) organizations, so called because their tax exemption is established in 26 U.S.C. sec. 501(c)(3)). When the group of people who make up a 501(c)(3) want to act collectively politically, they typically set up separate organizations which are also tax-exempt nonprofits, but to which donations are not tax-deductible for the donor, which can be substantially involved in politics.

    Most tax-exempt nonprofits are not restricted in their political involvement at all. See, generally, 26 U.S.C. sec. 501 [excluding 501(c)(3)].

    Furthermore, with regard to newspapers, any newspaper which chose to become a nonprofit (i.e., not to be operated for the benefit of private owners/shareholders) could do so now and become a 501(c)(3) now with the restrictions that would be imposed by this bill. So I don't see how this really provides any new options.

  16. Omission is not always bias by orthancstone · · Score: 4, Insightful

    Not every report needs to be a 10 page listing of everything going on.

    For example, why are protesters relevant? You're clueless if you don't get the idea that they are presenting an opposing viewpoint, but why do we need to know every anti-Democrat opinion there? If you want a story on it, it should be a SEPARATE story (or even editoral) and thus shouldn't be a part of the general convention coverage article. Thus omission isn't bias, it's proper reporting.

    By your argument, failing to report the tin-foil hat conspiracy version of stories is biased omission. But what is the cutoff? Presenting "both sides of the story" isn't the basis of unbiased reporting, it is the basis of turning editorials into reporting when it should be left to the opinion pages. I don't need to read the conservative counter to a Democrat's speech in an article about the speech. That counterspeech should be its own story or in the OP-ED.

    1. Re:Omission is not always bias by thePowerOfGrayskull · · Score: 3, Insightful

      For example, why are protesters relevant? You're clueless if you don't get the idea that they are presenting an opposing viewpoint, but why do we need to know every anti-Democrat opinion there?

      Because generally speaking, the reporting about the RNC is /certain/ to mention them. That's where bias leaks in, as GP stated - not so much in what is said, but what is left unsaid.

    2. Re:Omission is not always bias by sycodon · · Score: 5, Insightful

      An unbiased news report might look like this:

      Politician A today unveiled his plans for [some program]. The major parts of this program are [Part A],[Part B],[Part C]. The new legislation will be offered in the legislature next week.

      A biased new article is more like this:

      Politician A, whose approval ratings are at record lows, today unveiled his plans for [some program], which has been is blasted by [some hyperventilating critic] as [some affront to any number of fringe groups] . The major parts of this [controversial] program are [Part A],[Part B],[Part C]. The new legislation will be offered in the legislature next week but faces widespread opposition by [a minority of lunatics].

      Note that there would generally be several paragraphs detailing the supposed failings of the three parts and featuring criticism from various people who have not even seen the legislation.

      I suspect that if you are paying attention, you will notice that articles of the latter nature are more prevalent in the media today than.

      I care less about the bias than the approach to the news, to the guests, to the context.

      So you are OK with the condescending, arrogant attitudes that are typical of NPR?

      --
      When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
  17. Re:What a good idea by AxelTorvalds · · Score: 3, Insightful
    A big part of the problem is the blending of opinion and news. On Fox, they have a morning show, that's not a news show, it's a variety show with lot's of opinion, then at some point, like after 3pm, the news readers stop doing what they're doing and they roll out the prime time opinion guys, O'Reilly, Hanity, etc.. A lot of folks take exception to the opinion guys and they co-mingle them so much it's really hard to compare news to news. Personally, I find the morning shows the worst because they trot out a news reader to do some "news" and then just play grab-ass for 2 or 3 hours, talking. To some folks, the Today show is actually news and when Fox and HNN do it, they do inject a very specific brand of bias.

    MSNBC and HNN have nearly the same format, a morning variety show with varied opinion, but definitely not a "just news" program, some number of hours of news readers and then opinion guys/gals for primetime.

    Nobody from Fox News would ever claim that O'Reilly is a news man (well he might, who knows? His program clearly isn't a news program though, and even he'd say that) same with MSNBC, Olberman nas been very outspoken on the fact that's he's paid to give his opinion, that's the point of his show, and as such, it's not a news program. It was MSNBC that really botched it over the convention coverage and tried to use the prime-time opinion line up for news.

    Bottom line though, and it affects papers too, people tend to like to read opinions and editorials and they seem to like to watch it more than they like real news. You non-profit either the papers or the broadcast news and you probably have to dump them. There is probably a greater problem here if you take a step back; ABC,NBC, and CBS have been scaling back news for decades, they're basically down to a 30 minute evening news broadcast and that's about it without some sort of entertainment/investigative journalism spin. More people want to watch Jeopardy than "The News." Making papers non-profit might be a good way to make them cover more news and to protect them a little bit, but it remains unclear to me that people want to actually read news, they kind of like how they get to pick the kinds of "news" they can read or watch on their own and listen to the bias.

    Even the financial news has become a sham, and if there is ever something you should be able to report on without bias, it's the markets. They do more cheerleading than real news. They're poopooing Jon Stewart's criticism and he's the wrong messenger but his points are 100% valid. Honestly, I think a whole lot fewer people watch and you can hardly run a 24 network with real news, let alone the dozen or so that we've got. It's hard to put the horse back in the barn.

  18. Re:What a good idea by AB3A · · Score: 3, Insightful

    When everyone else in the world seems to have turned upside down, maybe it's time to look at your own orientation.

    Truthfully, until the internet came along, we used to get most of our daily news filtered through some reporter and editor. Today, we can read the federal register, congressional web sites, get blogs from people in the middle of a war zone, and so on.

    This is just like all the problems we're having with the RIAA, MPAA and others. Distributors do not have a monopoly on the news any more and they're losing out to people who want to get their information, movies, music, entertainment or whatever from the source.

    I won't argue whether "the media" is biased or not. It's rapidly becoming irrelevant. And now my very own Senator Ben Cardin wants to prop them up with my tax dollars.

    I have a better idea: let them die a normal, free-market death.

    --
    Nearly fifty percent of all graduates come from the bottom half of the class!