Rahall and Moore-Capito co-sponsor Resolution in Opposition to Performance Tax
Wednesday, 31 October 2007 21:56
As you are aware, the recording industry is asking congress to support creation of a new performance “right” that would require local broadcasters to pay for the use of recordings when aired on the radio.  No matter what terms they use, this would be a new TAX!
 
For many years, the record labels and performers have prospered greatly from the free airplay given by local broadcasters.  Through this airplay, the recording industry has enjoyed increased popularity, visibility and record sales. As you are aware, the recording industry is asking congress to support creation of a new performance “right” that would require local broadcasters to pay for the use of recordings when aired on the radio.  No matter what terms they use, this would be a new TAX!
 
For many years, the record labels and performers have prospered greatly from the free airplay given by local broadcasters.  Through this airplay, the recording industry has enjoyed increased popularity, visibility and record sales.
 
Congress has long recognized the value to the record labels and performers from the free promotion that radio gives them and therefore they have repeatedly declined to impose a performance tax on radio broadcasters.  In fact, every time Congress has looked at this issue, it has rejected calls to impose such a tax.
 
The system currently in place adequately compensates everyone.  While the record labels and performers may not receive payments from broadcasters, the free promotion they receive from radio airplay drives album, cd, and concert sales, which ultimately results in compensation for the performers and record labels.  This system has allowed American music and the recording industry to thrive and grow and it has allowed local broadcasters to better serve their communities.
 
The WVBA and its members thank you for your continued support of our industry.