Washington lawmakers want to tax Big Tech to prop up failing news outlets
Because nothing says “free press” like government funding.
State Sen. Marko Liias is the lead sponsor of Senate Bill 5400, which would impose a business tax surcharge on large software companies to fund local journalism.
Supporters claim this is about "saving journalism," but in reality, it’s a government bailout for struggling media outlets that undermines both press independence and economic fairness.
If SB 5400 passes, expect:
Higher costs for businesses and consumers as Big Tech passes on the tax
State-controlled media funding, giving the government more influence over the press
A dangerous precedent for taxing industries to subsidize political allies
This bill isn’t about preserving local journalism—it’s about using taxpayer money to prop up news organizations that can’t survive on their own.
What SB 5400 does
SB 5400 creates a new tax on tech companies to fund "local journalism sustainability."
Social media companies and search engines would be required to pay a percentage of their gross income to the state
The money would be deposited into a new "Local Journalism Investment Account"
State officials would then distribute these funds to "eligible news organizations"
In other words, the government will pick which media outlets get taxpayer money, creating a state-sponsored press system instead of a truly independent media.
A step toward state-controlled media?
Government-funded journalism raises serious concerns about press independence and the role of the state in controlling information.
In communist regimes like the former Eastern Bloc, media outlets were state-funded and operated as tools for promoting government narratives while suppressing dissent.
In modern China, the media is expected to serve as the “eyes, ears, mouth, and tongue” of the Communist Party, ensuring news coverage aligns with government priorities.
Government control over funding leads to control over content—whether through direct censorship or more subtle financial incentives.
Washington lawmakers claim this tax will "support local journalism," but once news organizations rely on government funding, their ability to challenge state policies is compromised.
While SB 5400 doesn’t propose direct editorial control, the financial dependency it creates could pressure media outlets to align with the interests of those controlling the funding.
Why this bill is dangerous
It creates government-funded journalism
A free and independent press is supposed to hold the government accountable—not take money from it.
When news outlets rely on government funding, their coverage inevitably becomes biased toward those in power.
Politicians will influence which media organizations get funding—and which ones don’t.
Journalists should answer to their readers, not to Olympia bureaucrats.
It punishes successful companies to subsidize failing ones
If local news organizations are struggling, it’s because readers aren’t supporting them.
Instead of adapting to the modern media landscape, they want government handouts.
Big Tech will pass this tax onto consumers and businesses, raising costs across the board.
Successful businesses shouldn’t be forced to fund failing ones.
It sets a dangerous precedent for taxation
Today, they want to tax Big Tech to fund journalism.
What’s next? A tax on Amazon to fund brick-and-mortar stores?
A tax on Netflix to bail out movie theaters?
A tax on electric cars to keep gas stations open?
Once the government starts picking winners and losers, there’s no limit to the industries they’ll target next.
Who benefits from this bill?
Politicians who want more influence over the media
Struggling news organizations that can’t compete in the free market
State bureaucrats who get to decide which outlets get funding
Who doesn’t benefit?
Consumers, who will pay higher prices as companies pass on the tax
Small businesses, who rely on affordable online advertising
Independent media, which will now have to compete with government-backed outlets
This bill isn’t about "saving local journalism"—it’s about expanding government power over the press.
What’s next?
If SB 5400 passes, expect:
More state control over media funding
Higher costs for businesses and consumers
A dangerous precedent for future industry-specific taxes
This isn’t journalism—it’s a government subsidy disguised as media reform.