Comments on: Can IRS Save The Press?

By: Huma

Huma — Thu, 26 Mar 2009 18:19:12 +0000

FOX News told me they do. =/

Hah.

But yeah, it’s a good point. Even though the non-profit status would take away the power of endorsements, there would be many ways to get around that.

By: TaxRascal

TaxRascal — Thu, 26 Mar 2009 18:14:53 +0000

I’m sure, but if they’re going to take such a drastic step, I figure the situation will be pretty closely monitored and any missteps will be taken care of.

Has that ever happened, in the history of government? Are there any government news sources that represent the interests of tax-payers over those of tax-spenders?

By: Huma

Huma — Thu, 26 Mar 2009 18:10:48 +0000

But if newspapers get nonprofit status, they wouldn’t be allowed to make endorsements, just report on political campaigns. There would be ways around it for the clever writer, I’m sure, but if they’re going to take such a drastic step, I figure the situation will be pretty closely monitored and any missteps will be taken care of.

By: TaxRascal

TaxRascal — Thu, 26 Mar 2009 18:07:57 +0000

Sounds like it could create a nasty feedback loop: the print media, which many people rely on for information about politics, could be beholden to politicians. That might lead to cartel-like behavior: in a close race, the newspaper strongly endorses a candidate who is going to raise their funding.

Since older people are more likely to read the paper, and more likely to vote, that could be a very powerful tool.

By: Another Tax Geek, CPA

Another Tax Geek, CPA — Wed, 25 Mar 2009 23:05:06 +0000

Interesting idea, but I’m not sure it’s the answer. Anyway, they’re already nonprofit, whether intentionally or not (tax joke…) Here in Seattle, the PI who just quit publishing hard copies is so blatantly liberal they’d definitely struggle with the restrictions. OTOH, if it meant better quality reporting and less advertorial’s it could be a good thing. But, other then the break on FUTA, as I understand it most newspapers aren’t going out of business due to their federal income tax liabilities – they don’t have any, because they have no income. The problem is cash flow, and the problem there is they aren’t attracting subscribers and advertisers in sufficient numbers to support their business. Fixing that will take more substantial changes then just becoming tax exempt.

By: Huma

Huma — Wed, 25 Mar 2009 21:06:57 +0000

I’d support the Naperville Sun, definitely. Heck, I even follow them on Twitter! But to kind of sum up what I said in my own blog post about this (http://bit.ly/xASyG), even paying full price every single day for a daily paper in addition to tax deductions and nonprofit status wouldn’t do much to cover operating costs considering just how much $$ papers get from advertisers, advertisers that would most likely back out if the paper started failing so as to require contributions from the local public. Le’sigh.