I am looking for information regarding tabs, spaces, and line-breaks in HTML/XHTML markup and whether it affects SEO.
I have found sources which state that extra white space hurts search engine optimization.
Example:
<div>
<p>
Text for a paragraph
</p>
<p>
More text for another paragraph
</p>
</div>
Should be written like this for SEO:
<div><p>Text for a paragraph</p><p>More text for another paragraph</p></div>
The second version of the code is much harder to maintain so I would far prefer to write code like the first example, but SEO concerns are the top priority.
Does white space negatively affect a site's search engine rankings?
Also, if you have any sources for your answer, please post them or explain your reasoning if you are the source.