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Thread: Performance Tax

  1. #1
    Senior Member EdA's Avatar
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    Default Performance Tax

    http://www.noperformancetax.org/en/Take%20Action

    I would like to hear from anyone with informed opinions

    it appears to be a recessive tax that would be a disincentive for free radio

    what emanates from Washington is not always what it appears to be but the authors of the legislation seem to support the thought that it indeed is what it appears to be

  2. #2
    Senior Member T. Mac's Avatar
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    Ed, I'm confused. I thought this was already the law? According to the back article (http://media.www.dakotastudent.com/m...-3860891.shtml), the proposed law mandates radio stations pay artists for the right to broadcast their music. To me, this sounds like the right thing to do as it is the intellectual property of the artist. Unless the sticking point is the proposed distribution schedule of the royalties?

    T. Mac

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    Senior Member EdA's Avatar
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    Quote Originally Posted by T. Mac View Post
    Ed, I'm confused.
    me too, seeking enlightenment.........Franco, UB, KG....?

    I've heard the promos several times on the local sports talk station
    Last edited by EdA; 02-15-2010 at 12:42 PM.

  4. #4
    Senior Member Franco's Avatar
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    Yes, radio already pays royalties for every song played, each time it is played. The new proposal would increase royalties to 4 times the going rate.

    Some see it as an endrun around the "Fairness Doctrine". If passed it would be the death nail to mega-broadcasters like Clear Channel. CC ownes the Rush Limbaugh Show as well as the syndicator for Sean Hannity through thier wholelly owned Premier Radio Network. Clear Channel, which went privately owned 18 months ago is in default with creditors.

    Others think it is just the recording artist wanting more money for each song aired.

    The irony is, if radio doesn't play the artist, they remain unknown. If radio plays the artist then they have the opportunity to make potential millions. They think that radio has to play thier music. If passed, there will be a lot more Talk and Sports formats on the air.

    Artist and thier agents WILL kill the goose that has layed the Golden Egg for them.

    Last week, TV Broadcasters have joined the fight against increased royalities knowing that they are next.

    I think a settlement somewhere in the middle will be reached and the advertisers will end up paying for it and will pass the added expense as they charge consumers more for thier goods and services.

    The biggest negative impact could be streaming radio since that format has little to no income as it is in its infancy stage.
    Last edited by Franco; 02-15-2010 at 01:06 PM.
    “The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.” –Thomas Jefferson

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    Senior Member YardleyLabs's Avatar
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    This bill was introduced in the last session and died in committee. However, it has broad, bi-partisan support. It is now in the Judiciary Committee in the House. The bill states that Congress will not impose any fees or royalties on radio stations for playing music. The recording industry has been petitioning Congress for legislation that would impose such fees. The text of the bill is only a few lines once you get oast the whereas clauses. It reads, in full:

    CONCURRENT RESOLUTION

    Supporting the Local Radio Freedom Act.

    Whereas the United States enjoys broadcasting and sound recording industries that are the envy of the world, due to the symbiotic relationship that has existed among these industries for many decades;

    Whereas for more than 80 years, Congress has rejected repeated calls by the recording industry to impose a performance fee on local radio stations for simply playing music on the radio and upsetting the mutually beneficial relationship between local radio and the recording industry;

    Whereas local radio stations provide free publicity and promotion to the recording industry and performers of music in the form of radio air play, interviews with performers, introduction of new performers, concert promotions, and publicity that promotes the sale of music, concert tickets, ring tones, music videos and associated merchandise;

    Whereas Congress found that ‘the sale of many sound recordings and the careers of many performers benefited considerably from airplay and other promotional activities provided by both noncommercial and advertiser-supported, free over-the-air broadcasting’;

    Whereas local radio broadcasters provide tens of thousands of hours of essential local news and weather information during times of national emergencies and natural disasters, such as September 11th, and Hurricanes Katrina, Rita, and Ike, as well as public affairs programming, sports, and hundreds of millions of dollars of time for public service announcements and local fund raising efforts for worthy charitable causes, all of which are jeopardized if local radio stations are forced to divert revenues to pay for a new performance fee;

    Whereas there are many thousands of local radio stations that will suffer severe economic hardship if any new performance fee is imposed, as will many other small businesses that play music including bars, restaurants, retail establishments, sports and other entertainment venues, shopping centers and transportation facilities; and

    Whereas the hardship that would result from a new performance fee would hurt American businesses, and ultimately the American consumers who rely on local radio for news, weather, and entertainment; and such a performance fee is not justified when the current system has produced the most prolific and innovative broadcasting, music, and sound recording industries in the world: Now, therefore, be it

    Resolved by the House of Representatives (the Senate concurring),
    That 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.

  6. #6
    Senior Member YardleyLabs's Avatar
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    Quote Originally Posted by Franco View Post
    Yes, radio already pays royalties for every song played, each time it is played. The new proposal would increase royalties to 4 times the going rate.

    Some see it as an endrun around the "Fairness Doctrine". If passed it would be the death nail to mega-broadcasters like Clear Channel. CC ownes the Rush Limbaugh Show as well as the syndicator for Sean Hannity through thier wholelly owned Premier Radio Network. Clear Channel, which went privately owned 18 months ago is in default with creditors.

    Others think it is just the recording artist wanting more money for each song aired.

    The irony is, if radio doesn't play the artist, they remain unknown. If radio plays the artist then they have the opportunity to make potential millions. They think that radio has to play thier music. If passed, there will be a lot more Talk and Sports formats on the air.

    Artist and thier agents WILL kill the goose that has layed the Golden Egg for them.

    Last week, TV Broadcasters have joined the fight against increased royalities knowing that they are next.

    I think a settlement somewhere in the middle will be reached and the advertisers will end up paying for it and will pass the added expense as they charge consumers more for thier goods and services.

    The biggest negative impact could be streaming radio since that format has little to no income as it is in its infancy stage.
    Franco,

    When I read the text of the bill, it doesn't seem to be what you are describing since House Concurrent Res 49 prohibits additional taxes or royalties from being imposed by Congress.

  7. #7
    Senior Member Franco's Avatar
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    Quote Originally Posted by YardleyLabs View Post
    Franco,

    When I read the text of the bill, it doesn't seem to be what you are describing since House Concurrent Res 49 prohibits additional taxes or royalties from being imposed by Congress.
    The issue has not been resolved.

    I recently received a letter from my employer asking for a contribution to the No Performance Tax Increase organization to help fight the increase. Like I wrote, TV just joined the fight last week.

    How old is the bill you quoted?
    http://www.forbes.com/2010/01/08/rad...way-radio.html

    P S

    If there is an increase, get ready for a lot more Talk Radio.
    Last edited by Franco; 02-15-2010 at 01:23 PM.
    “The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.” –Thomas Jefferson

  8. #8
    Senior Member Franco's Avatar
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    Yardley, I think this is where the confusion comes into play;

    Currently, only the Song Writer and Composer recieves royalties from music played on radio.

    Now the performers want a piece. If the Black Eyed Peas recorded/covered a Bob Dylan song, Bob would make the money and not the Peas.

    The additional tax would provided money for the recording artist. In the case of songwriters/performers, they make more dough. Guys like George Strait, who has all his songs written by Nashville songwriters recieves no royalities under the current agreement. George does make a lot of $ from CD sales and concerts appearences.
    Last edited by Franco; 02-15-2010 at 01:40 PM.
    “The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.” –Thomas Jefferson

  9. #9
    Senior Member YardleyLabs's Avatar
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    Quote Originally Posted by Franco View Post
    The issue has not been resolved.

    I recently received a letter from my employer asking for a contribution to the No Performance Tax Increase organization to help fight the increase. Like I wrote, TV just joined the fight last week.

    How old is the bill you quoted?
    http://www.forbes.com/2010/01/08/rad...way-radio.html

    P S

    If there is an increase, get ready for a lot more Talk Radio.
    The bill I quoted is the version introduced on February 12, 2010. I didn;t go back to compare it with the text of the prior version. You can see the current text at http://www.govtrack.us/congress/bill.xpd?bill=hc111-49. I'm not trying to argue any point, I'm simply confused since it looks like the current text is exactly what the broadcasters want.

  10. #10
    Senior Member Franco's Avatar
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    Quote Originally Posted by YardleyLabs View Post
    The bill I quoted is the version introduced on February 12, 2010. I didn;t go back to compare it with the text of the prior version. You can see the current text at http://www.govtrack.us/congress/bill.xpd?bill=hc111-49. I'm not trying to argue any point, I'm simply confused since it looks like the current text is exactly what the broadcasters want.
    If the issue was resolved on Friday, I am not aware of it. Aftereall, we are on Mardi Gras holiday through tomorrow!
    “The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.” –Thomas Jefferson

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