Using a Digital Entertainment Tax to Strengthen Local Information Infrastructure in The United States: A Conceptual Exploration

As traditional local media decline, how might state and local governments provide support for local information infrastructure? We offer a proposal for states (or communities) to tax digital entertainment and then leverage existing community media centers (CMCs) to facilitate the distribution of the proceeds to local media outlets. Compared to other public subsidy plans, this approach is viable nationwide without federal action and offers several advantages that could lead to more immediate and durable support for local information infrastructure. To contextualize our proposal, we model both the possible revenue generation and distribution of funding that would result from its implementation.