What is a performance tax?

Record labels want the government to impose a tax on local radio stations simply for airing music free of charge for listeners. In recent years, the labels have seen sales of albums decline as more listeners opt for digital downloads. However, radio remains the number one promotional vehicle for music – it’s not responsible for the label’s resistance to the digital age, and it shouldn’t be on the hook to fix it. By pushing a tax on local radio, record labels are biting the hand that feeds them.

Where does the money go?

In short, the money would flow out of your community and into the pockets of the record labels – the great majority of which are foreign-owned. 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% of the proceeds from a tax on local radio.

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 and providing vital news and community information and free airtime to help local charities. If a tax were imposed, stations’ critical public and community service efforts could be reduced.

Doesn’t radio already pay for music?

Radio compensates composers and songwriters to the tune of about $550 million annually. It’s widely understood that songwriters do not have the same name recognition to financially exploit themselves to make money. Performers can make money from touring, merchandise, etc. Radio stations also pay a royalty for streaming music over the internet, for reasons that include concerns that a perfect digital copy of the music could be captured by the end user.

How can I get involved?
Call, email or write your Congressman. 

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I was just wondering what Third Day's take on this issue is? It seems to me like the artists are caught in the middle between the record labels and the broadcasters. I just hope it means that I can always turn on the JOY FM and here my favorite band whenever I want!

This is the season finale of Mark's blog so lets go out with a bang! Any comments or thoughts are always welcome!