In Preston and thousands of communities just like ours, local businesses and the hometown newspaper have a symbiotic relationship. Each serves a vital role in the community, and both are better off because of the strong connection they share.
The Citizen can trace its origins back to 1890. From then to today’s print edition, e-Edition, tremontonleader.com website, smartphone apps and social media accounts, local journalists have provided the information residents need to be informed, engaged and active residents of the capital city and surrounding area.
None of it would be possible, though, without the support of our loyal customers. Without readers, of course, there would be no reason for us to exist. And without the businesses that advertise with us, there wouldn’t be enough money to pay the salaries of those who report and write the stories, take the pictures, produce the ads, design the pages, print the newspaper and make sure it gets to you in a timely manner.
Unfortunately, on average, two U.S. newspapers per week are closing their doors forever, unable to keep the lights on because the revenue they depend on to pay the bills just isn’t there. Where has it gone? In some places, mom-and-pop businesses have been struggling since before the COVID-19 pandemic started in 2020. The shutdown that began in March of that year put some out of business, while others were forced to scale back or stop advertising altogether. Many have returned, but, unfortunately, not all; and many of those that are back are spending much less than they were pre-pandemic.
Then there’s that digital wonderland we call the internet. It lets us deliver our news instantly to customers via smartphone and computer, but it has also dramatically changed the business model for newspapers and other legacy news organizations. As we’ve made the transition from all-print to a hybrid model that meets readers where they are, the dollars have turned to dimes as mega-platforms like Google and Facebook (Meta) suck up more than their fair share of a publisher’s income.
Thankfully, politicians at the national level are aware of these problems and have proposed solutions designed to prevent more places from becoming “news deserts” — places with no local newspaper, radio or television station. Recently, 84 journalists, publishers and others who work for small- to medium-sized media companies — including Adams Publishing Group, which owns the Citizen — spent time in Washington, D.C., visiting with members of Congress about two key pieces of legislation.
In the Senate, Sen. Amy Klobuchar, D-Minn., and John N. Kennedy, R-La., have sponsored the Journalism Competition and Preservation Act (S. 1094). This is a new version of a bill that gained widespread support last year but failed to make it across the finish line. If passed, it would force Big Tech companies to negotiate with news publishers and broadcasters in order to provide fair compensation for the news shared on their platforms.
In the House of Representatives, Rep. Claudia Tenney, R-N.Y., and Rep. Suzan DelBene, D-Wash., have sponsored the Community News and Small Business Support Act (H.R. 4756). This new piece of legislation really gets to the heart of that symbiotic relationship mentioned earlier. That’s because it proposes a series of tax credits over a five-year period that benefits both sides of the relationship.
For small businesses with fewer than 50 employees, the House bill provides a five-year, non-refundable credit of up to $5,000 in the first year and up to $2,500 in the next four years to spend with local newspapers and other local media. The credit covers 80% of total advertising costs the first year, which means to qualify for the full $5,000 benefit, a business owner would need to spend at least $6,250. In the next four years, the tax credit would cover 50% of advertising costs, so a $5,000 advertising bill would be cut to $2,500.
At the same time, local media organizations (defined as those that employ at least one full-time journalist and have fewer than 750 employees) would qualify for a five-year, refundable tax credit to use for the compensation of journalists. The credit would cover up to 50% of compensation the first year and up to 30% the next four years, up to a maximum of $50,000 a year per journalist.
So, for example, for journalists who earn $50,000 per year, a local newspaper could claim up to $25,000 per journalist in the first year and up to $15,000 per journalist in the next four years. That adds up to $85,000 over the five-year period for each journalist.
A similar bill is expected to be introduced in the Senate by Sen. Maria Cantwell, D-Wash., who is currently seeking a Republican co-sponsor.
We believe this is a win-win for local communities, as both local news organizations and the small businesses they depend on would receive the financial support they need. More local reporters working in a community means more hometown news and other information that citizens count on. And stronger newspapers provide stronger advertising vehicles for local businesses.
Recent studies show that 73% of U.S. adults said they have confidence in their local newspaper (compared to 55% who say the same for national network news). Yet, since 2005, the country has lost more than a quarter of its newspapers (2,500) and is on track to lose a third more by 2025. And communities with less local news see more government corruption, and waste, higher taxes and less civic engagement, including voter turnout.
Is this federal legislation the silver bullet that will save the local news industry? By itself, no, but we believe it is part of a multi-faceted solution that includes branching out into commercial printing (already a strong piece of the Leader's business), event planning and much more. That’s why we sent Wyoming Tribune Eagle Managing Editor Brian Martin to our nation’s capital to encourage members of Congress to pass these bills, as well as to impose strict controls on artificial intelligence to protect the integrity of our news content.
So, what can you do? Contact your U.S. senators and representative today and tell them you want to them to sponsor and/or support the Senate’s Journalism Competition and Preservation Act and the House’s Community News and Small Business Support Act. And continue your financial support for the relevant and trusted local news and advertising content you’ve come to expect from the Citizen.
(0) comments
Welcome to the discussion.
Log In
We welcome comments, however there are some guidelines:
Keep it Clean: Please avoid obscene, vulgar, lewd, racist or sexual language. Don't Threaten: Threats of harming another person will not be tolerated. Be Truthful: Don't lie about anyone or anything. Be Nice: No racism, sexism or any sort of -ism that is degrading. Be Proactive: Report abusive posts and don’t engage with trolls. Share with Us: Tell us your personal accounts and the history behind articles.