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Song tax threatens local radio stations
The Gazette Opinion Staff
Mar. 28, 2010 12:25 am
For more than 80 years, radio has been something that could be enjoyed by everyone, but now the government is considering changing that. Recording labels want to put a tax on local radio stations, forcing them to pay every time they play a song.
The current relationship between radio stations and artists is mutually favorable. The stations get to play the artists' songs, and in return, the radio advertises for artists by getting their music out to the public. This free broadcasting results in artists/record labels making more than $2.4 billion per year from sales, not including concert/merchandise sales.
Despite what the recording labels want the public to believe, the majority of the money would not go to artists, but rather to the labels, and three-fourths of them are located overseas. This performance tax would force radio stations to pay what some analysts predict could be millions annually to bail out foreign companies.
There are about 106,000 people employed by local stations in the United States, and all their jobs would be at risk. Furthermore, it would stifle new artists because no radio would be able to afford the risk of paying for something that might be a waste of money.
By going to www.noperformancetax.org, people can see many ways that they can do their part to save local radio.
Mikayla Laetare
Olin
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