Posted on 10/25/2011 11:32:27 AM PDT by MichCapCon
News reports state the movie makers of "Iron Man 3" left Michigan for North Carolina because Michigan wouldn’t meet demands for up to $30 million in incentives for the production company.
While Senate Majority Leader Randy Richardville, R-Monroe, implied Gov. Rick Snyder’s administration made a mistake in losing Iron Man 3, the Mackinac Center for Public Policy’s James Hohman says politicians should have much higher priorities for state tax dollars.
For instance, Hohman, assistant director of fiscal policy, estimated that 4,892 families that were kicked off welfare this year could get assistance again with $30 million.
Also, it would take all the tax receipts of nearly 2,000 small businesses to pay for that $30 million subsidy, Hohman estimated.
Sen. Richardville said negotiations for film tax incentives were ongoing to bring a Steven Spielberg movie to Michigan. Spielberg’s net worth is estimated to be $3 billion.
“Legislators have serious prioritization problems if they would rather give $30 million to Steven Spielberg than to improve Michigan's business climate or bolster its human service programs,” Hohman said.
(Excerpt) Read more at michigancapitolconfidential.com ...
Not after the crap that was Iron Man 2
I thought IM2 was ok.
But I guess to give $30 million dollars in tax credits, the film company was prepared to spend enough to generate at least $30 million in tax revenue.
I doubt that.
They’re making a third Iron Man? Cool!
—Not after the crap that was Iron Man 2—
It wasn’t that bad. It was fun light entertainment.
—But I guess to give $30 million dollars in tax credits, the film company was prepared to spend enough to generate at least $30 million in tax revenue.—
I don’t think that is the right way to look at it. If they had not been given the tax credits they would not have made the movie there. That means zero dollars. But they did make the movie there, and it no doubt increased the money coming in, if just for meals and gas for those involved. They probably bought some nice clothing from time to time and maybe gambled a little at Greek Town.
I am sure they created some minimum-scale jobs that lasted a few weeks though.
lol
My entire post talks in the wrong context. I was talking AS IF Michigan had granted the tax credit. Sorry about that...
Occupy Hollywood....those rich aren’t paying their fair share.
The tax payers should not be funding business. period. Not Solyndra, not Hollyweird.
Not unless we get royalties.
Put Bill Richardson in some red and pink tights, and send him in as the hero to arbitrate the problem. He was a big friend of Hollywood while governor of New Mexico.
—The tax payers should not be funding business. period. Not Solyndra, not Hollyweird.—
You won’t get any argument from me. I feel the same way about professional sports, btw.
I think Ironman 3 has a different director.
Bingo! Thanks for nailing the crux of the situation.
The state is not literally taking money out of a general fund and giving it to the filmmakers! In shooting a film with a budget presumably around $200 million, the filmmakers were asking about a competitive discount typical in many other states for the very purpose of drawing in movie production dollars. These discounts tend to be a flat amount or a percentage of the entire budget when completed.
Just presuming that $30 million is 25% of a $120 million on-location shoot (the other $75 mil being post-production, star salaries, etc.) Michigan missed out on $90 mil worth of taxable business operations.
One more thing: films tend to make mini-tourist attractions via their location choices. While most tend to be short-lived some of the more famous ones (think "Rocky" and the stairs in Philly) tend to take on a life of their own. Woodstock, IL reaped the ongoing tourist benefit by allowing the filming of "Groundhog Day" in their small town after the powers-that-be in the similarly-sized "Weather Capitol of the World," Punxsutawney, PA., turned down a bid to film in their hamlet a movie that highlights exponentially the very object of their economic health, Phil the Groundhog.
So you have three scenarios - none of which involve Michigan funding the making of Iron Man 3.
Scenario A: Michigan gives a tax credit and money is spent in Michigan but 30$ million in taxes that might otherwise be collected is not collected.
Scenario B: Michigan doesn't give a tax credit and money is spent in Michigan and 30$ million in taxes IS collected by the State government of Michigan.
Scenario C: Michigan doesn't give a tax credit and the money is NOT spent in Michigan and Michigan collects nada, nothing, zip, zilch, zero.
Now the libtard idiots think Scenario B is the best, not realizing that Scenario C is much much much more likely.
Follow?
If tax breaks work, then make them blanket and uniform for everyone.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.