Stop the Radio Tax
Performance Tax on Radio
In these tough economic times radio stations across the country are facing a serious economic threat. Congress is being asked by record companies to consider imposing a new fee on radio stations for playing the music that you currently enjoy. This tax would financially hurt local radio stations, stifle new artists and harm the listening public who rely on free local radio.
The Impact
Imposing a new performance fee will force many stations across the country to stop playing music. The irony is this new fee that is being proposed in order to help struggling artists, will actually send half of this proposed fee to the record companies, many of whom are owned by foreign corporations, and not to the artists that they claim it will help. The record labels would like for you to think this is all about compensating the artists, but in truth the record labels would get at least 50 percent of the proceeds from a tax on local radio.
For decades, radio stations have played and promoted music from artists and record labels. Radio stations have always had the liberty of playing music free of charge, and meanwhile artists and record labels have taken advantage of this free promotion. Most importantly, listeners all over the United States have enjoyed listening to music from a variety of radio stations and genres.
The new performance tax will put a financial strain on radio stations across the country. It is unclear how deep the impact will be or the size of this performance tax, but nonetheless it may impact The JOY FM.
How Does This Affect Me?
A tax could reduce the variety of music radio stations play, and all but eliminate the possibility of new artists breaking onto the scene. The tax could particularly affect smaller, minority-owned stations, some of which may have to switch to a talk-only format or shut down entirely.
It also affects your community. Radio stations are major contributors to public service – generating $6 billion in public service annually, providing vital news and community information and free airtime to help local charities. If a tax were imposed, stations’ critical community service efforts could be reduced.
What you can do
Over the upcoming months, these bills will be voted on in Congress, and there are many ways to get involved:
- Voice your concern. Contact your local member of Congress and ask them to stop the Performance Tax on radio.
- Spread the word. Tell your friends about the impact that this tax will have and encourage them to contact their local member of Congress.
- Other ways you can help - www.noperformancetax.org
History
Over the years Congress has repeatedly rejected efforts to impose new fees on radio, but record companies continue to present a one-sided view to Congress. Studies have shown that artists receive great promotional benefit from radio playing their music and both musicians and radio have benefitted from this relationship for many years.
The JOY FM already pays thousands of dollars each year to songwriters and their publishing companies for the music we play because they do not benefit from record and concert ticket sales like the artists do. Outside of The JOY FM, many other Christian music radio stations will either fail or be forced to change formats, because they just will not be able to afford the dramatic increase in expenses that these fees would cause.
