MAB Urges Congress to Oppose New Tax

MAB Urges Congress to Oppose New Tax

Measure would cost jobs, send Michigan dollars overseas

LANSING, Mich., May 8 /PRNewswire/ -- Michigan's tough economic climate may get even worse for local radio broadcasters if Congress decides to approve legislation that would force hometown radio stations to pay a new Performance Tax. House Resolution 848 would require local radio stations to pay a new fee for music that is aired free by local radio station to their listeners.

The fee would go directly to the record companies label, with only a small portion going to the creative artist. Three of the four largest record label conglomerates are internationally-based, meaning local dollars would be sent overseas.

"Local radio broadcasters simply cannot endure an additional fee," says Karole White, President and CEO of the Michigan Association of Broadcasters (MAB). "No time is a good time for a tax increase, but given the current state of the economy, now is the absolute worst time for government to increase the cost of doing business in Michigan and send money to foreign conglomerates. Make no mistake this measure, if passed, this new tax will cost Michigan money and jobs," stated Ms. White.

Broadcast radio and the recording industry have long enjoyed a symbiotic relationship: broadcast radio stations entertained listeners, while the record labels and the performing artists enjoyed free promotion their music.

A resolution in the House has been introduced to counter the Performance Tax legislation stating, "Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over-the-air, or on any business for such public performance of sound recordings." Thus far, 5 members of Michigan's congressional delegation have expressed their support for local radio broadcasters by co-sponsoring H. Con. Res. 49, including Fred Upton (R-6), Bart Stupak (D-1), Candice Miller (R-10), Pete Hoekstra (R-2), Mike Rogers (R-8) and Vern Ehlers (R-3),.

The Michigan Association of Broadcasters represents more than 389 radio and television stations, serving nearly 4,000 individual employees in the broadcasting industry. MAB is one of the largest broadcast associations in the nation and offers educational, informational and cost-saving services to its members. The MAB is dedicated to helping its members serve their communities, advertisers and staff by providing solutions to industry problems and satisfying members' needs.

First Call Analyst:
FCMN Contact:

Source: Michigan Association of Broadcasters

CONTACT: Karole White or Dave Jessup, +1-517-974-6684, mab@michmab.com

---

Profile: International Entertainment