The new $2.9 trillion tax plan coming from the Democrats seems to include one odd clause, a large tax credit for local news journalists.
Back on the 13th of September, Democrat members on the House of Representatives’ Ways and Means Committee, a group that plays a large role in the drafting of any new tax policy, put forth an option that tried to raise $2.9 trillion in increased federal revenue over the course of a ten-year span. The proposal in question places its nexus on drawing out more money from wealthy Americans by spiking the corporate tax, the estate tax, the capital gains tax, and income tax overall.
In addition, the proposal includes a “Payroll Credit for Compensation of Local News Journalists.” as reported by Editor and Publisher, which is an industry publication about journalism, the newly planned tax credit “will provide local newsrooms the opportunity to receive a five-year tax credit of up to $25,000 per journalist in the first year and up to $15,000 in the subsequent four years.”
As stated in the proposal, any local newspaper will be eligible to get the tax credit if it “serves the needs of a regional or local community” and “employs no more than 750 employees.”
This new tax policy coming from the Democrats seems to draw from the Local Journalism Sustainability Act, which was put forth by Rep. Ann Kirkpatrick (D-AZ) back in June. Going past the $12,500 tax credit for all local publications, the legislation would grant Americans who subscribe to “one or more local newspapers” a substantial $250 tax credit of their own.
“Local Journalism is a bedrock pillar of communities across the United States,” stated Kirkpatrick back in June. “Unfortunately, journalistic endeavors throughout the country face major economic struggles that put the future of many publications in serious jeopardy. These struggles existed before COVID, but the pandemic only made them more severe. We need to make sure these publications can sustain themselves through this crisis and beyond, and I believe the credits in this bill make significant progress in providing a pathway to that sustainability.”
“The ongoing challenges at local newspapers were made worse by the pandemic,” tagged on the CEO of America’s Newspapers, Dean Ridings. “The result is even more pressure to maintain newsroom positions and the critical local news gathering that is at the heart of our democracy. As local newspapers continue their progression to a sustainable digital future, the Local Journalism Sustainability Act will provide meaningful assistance as newspapers seek to provide information in new ways to meet the needs of their audience.”