Performance tax on radio


I haven’t heard anybody say, “If Congress can pass a law that says radio stations need to pay new fees to play music, and the President can fire the CEO of GM, then as part of the radio money to the music industry, let’s mandate that 95% of all this new money paid must go to artists and performers with 5% or less to record companies for administration of the money. 

The record companies already have mechanisms to keep track of which artists wrote the songs and which get paid based on record sales.  Make them use that same back office function to funnel the vast majority of the performance money to the real artists.

The IRS does this with churches and charities who must document their administrative costs and keep them within guidelines or lose their charity status.
Record companies that don’t pay artists and performers adequately should lose their share of the performance fee.

Of course, small radio stations should pay no more than $500 per year.  Stations that lose money should not pay at all. 

Dave Scott