Maryland senator has a solution failing newspapers: make them nonprofits

Begin quoted material from
StarTribune.com Minneapolis/St. Paul, Minnesota
http://www.startribune.com/politics/national/congress/41751552.html

Maryland senator has a solution failing newspapers: make them nonprofits

By LARRY MARGASAK , Associated Press



WASHINGTON - Struggling newspapers should be allowed to operate as nonprofits similar to public broadcasting stations, Sen. Benjamin Cardin, D-Md., proposed Tuesday.

Cardin 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.

"We are losing our newspaper industry," said Cardin. "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."

Cardin said his proposal may not be the best choice for some major newspapers, but "should be an option for many newspapers that are struggling to stay afloat."

Speaking on the Senate floor, Cardin added, "As local papers are closing, we're losing a valuable tradition in America — critically important to our communities, critically important to our democracy."

The head of the newspaper industry's trade group called the bill a positive step.

John Sturm, president and chief executive officer of the Newspaper Association of America, said the proposal "recognizes changes in the law might be necessary to provide a boost to newspapers trying to weather this difficult economic period."

He agreed with Cardin that his approach may not work for all newspapers, but said the legislation is a starting point for discussions already under way on ideas to help the industry.

The association is a nonprofit organization representing the $47 billion newspaper industry and more than 2,000 newspapers in the United States and Canada.

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