Rebuild Local News, a coalition group, proposed a dramatic tax-based solution to the problem of disappearing local journalism, which is having significant social and political consequences, according to Near Media co-founder Greg Sterling.

Turns out the art of news is dwindling. Since 2004, 2,100 newspapers have closed. Some 1,800 communities that had at least one newspaper now have none. No wonder why Google is pouring millions into supporting local news. The company also dedicated $15 million in August 2022 to run a digital and print campaign to run with local news media.

“According to the Columbia Journalism Review, ‘on average, two newspapers are shuttering each week,’” Sterling wrote.

The groups came together, representing more than 3,000 local newspapers, formed this coalition represent rural weeklies and historic Black newspapers, for-profits and nonprofits, publishers and labor unions, and many others.

The Coalition also includes new nonprofit and philanthropic organizations. Microsoft is the only for-profit backer, according to Axios. Steven Waldman, a local news advocate, is leading the coalition.

Sterling also points to a proposed $250 tax credit by the organization for consumers to subscribe and donate to local news, a tax credit for small-and-medium-size businesses (SMBs) to advertise in local media and a credit for hiring and retention of journalists.

Here’s the rest of it: The advertising tax credit would provide up to $5,000 “in the first year and up to $2,500 in each of the subsequent four years to spend on advertising with local newspapers and local media.” Any business with fewer than 1,000 employees, which is 99%+, would be eligible. Local media is defined as publishers with a majority local audience.

Sterling believes this is a better plan than asking Google and Facebook to subsidize news.

“It’s unclear how much Congressional support exists for this initiative, though the bill has bi-partisan support and is content-neutral,” he wrote in a post. “A $5K tax credit for local ads would shake up local digital advertising. But publishers would need to focus ‘primarily’ on local news.”

The Rebuild Local News coalition proposed a dramatic tax-based solution to the problem of disappearing local journalism, which is having significant social and political consequences, according to Near Media co-founder Greg Sterling.