Quotulatiousness

June 22, 2017

The Netflix tax is dead (again) – “This thing was a turkey, and Trudeau was right to wring its neck.”

Filed under: Business, Cancon, Government, Media — Tags: , , , , , — Nicholas @ 05:00

Chris Selley rejoices in the demise of the so-called “Netflix tax” proposal, but also pours scorn on yet another proposal to prop up Canadian print media organizations:

Justin Trudeau wasted little time last week rubbishing the Heritage Committee’s so-called “Netflix tax,” and no wonder. If you’re determined to raid people’s wallets to fund journalism they’d rather not pay for and Can-con programming they’d rather not watch, you’re far better off doing it shadily than with a shiny new tax on something people love. The sound bytes winging around in the idea’s favour were, in a word, pathetic: “it’s not a new tax, but an expanded levy!”; “we already tax cable, why not Internet?”; “we already subsidize magazines, why not newspapers?”

Good God, why any of it? This thing was a turkey, and Trudeau was right to wring its neck.

Newspaper publishers and union bosses remain undaunted in pursuit of unearned public funds, however. “Canada’s newspaper industry unites to advocate for Canadian Journalism Fund,” proclaimed a headline at News Media Canada, the publishers’ lobby group. They’re savvy enough to propose tying subsidies to employed journalists’ salaries — 35 per cent to a maximum of $30,000 per head — rather than just cutting cheques. That might fend off Executive Bonus Rage, but it won’t fend off sticker shock: the suggested eventual cost is a whopping $350 million a year.

As a taxpayer I would much rather subsidize Canada’s journalists than Canada’s legacy media companies — but I would sure as hell rather subsidize neither. The more beholden to government a country’s journalists, the less free its press. Magazine writers in this country know their publications get a top-up from Ottawa in the form of the Canadian Periodical Fund. That’s not ideal. But under News Media Canada’s proposal, we would know our jobs literally depended on government largesse. I’ll take a hard pass on that.

Publishers’ and union bosses’ claims of unanimous support notwithstanding, many unionized journalists, and many of your non-unionized friends here at the National Post, hate the idea. It risks narrowing Canada’s already remarkably narrow spectrum of acceptable ideas and arguments. It risks — no, guarantees — alienating the very consumers we need to attract. In the case of some legacy media outlets it would simply extend the runway for business models that everyone knows will never fly again. In any event, the sums being bandied about wouldn’t solve the crisis as a whole unless the solution was permanent and ever-greater government dependency. I’m amazed to see how many journalists, including some very nearly pensionable ones, support the idea.

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