Posted on 09/19/2013 1:15:59 PM PDT by MichCapCon
Taxpayers are constantly told that film incentives are supposed to be a “temporary” subsidy to “plant and grow” an industry. But as Milton Friedman once observed, “Nothing is so permanent as a temporary government program.”
In North Carolina, the legislature has cut the state incentive program, once among the most generous in the nation, down to zero starting in 2014. While debating the budget, the Motion Picture Association of America, sent a letter to the state that read: “[W]ithout an extension of the production incentive program, North Carolina will no longer be considered for major feature films.”
The MPAA represents nearly every major film and television producer in the country: Paramount Pictures, 21st Century Fox, Sony Pictures Entertainment, NBC Universal, Walt Disney Studios and Warner Brothers. The letter takes some chutzpah. Billion-dollar companies demanding select corporate welfare from state taxpayers.
As Mackinac Center for Public Policy analysts have written previously, the economic analysis of these programs is nearly universally against them being worth the taxpayer money. In Michigan, they have never been found to return what they cost. The same has been found in other states.
A study in Louisiana from the left-leaning policy group Louisiana Budget Project found that the state paid out $7.29 in incentives for every dollar brought in. The state has spent more than $1 billion since 2005 without any uptick in film jobs. In California, the state’s Legislative Analyst Office found that, contrary to reports, state and local government tax revenue was likely well under what was spent on the program. And that’s in the state everyone associates with the movie industry.
The king of film production is Hollywood, but it didn’t happen because of rich subsidies; significant film credits only began in California in 2009. Now the city is worried. The mayor of Los Angeles declared a “state of emergency” in a front page story in Variety. Unsurprisingly, he wants the state legislature to up the subsidies.
This is a strong case against film subsidies. Michigan has been continually assured that once a film industry is built here, the subsidies can be phased down.
But California is the clearest case yet that Hollywood studios are simply playing states against each other. That’s fine for them — they are in the business of getting as much (legal) money as they can. But politicians shouldn’t force taxpayers to be on the hook for these bad expenditures.
Noting that the OP indicated that investing in movies is basically not worth it, the states do have the 10th Amendment authority to tax and spend to kiss the butts of movie industry wigs.
On the other hand, the states have never delegated to Congress, via the Constitution, the specific power to subsidize private movies with federal tax dollars.
So it’s ultimately up to the voters in each state to decide how they want their state’s legislators to waste their state’s tax dollars.
I’m still ticked Perry gave Bravo TV’s “Top Chef” my tax dollars to film in Texas. At least $400k was given away along with who knows how much more and whatever other perks.
http://nypost.com/2011/10/06/texas-showdown/
This isn’t meant for you specifically, but speaking of Dems and movies - not that I mean to slight you! - but did anyone else notice Pat F’ing Leahy in the last two Dark knight films? Seemed really weird, especially with how non-liberal those films were.
Cheers,
Jim
Yikes! I hope not! What a dump!
Cheers,
Jim
That can't be true, if there is one group in America that demands to "pay their fair share" it's the big hearted people in the movie industry.
/Sarcasm off
Over my dead body.
If they are to receive welfare they too better have to pee in a cup to get it.
Cut them off. End corporate welfare. No subsidies for Hollywood, car companies, unions, Big Banks, farmers, or anyone.
And (as you know) I am now Sleepless in Santa Barbara :).
Enjoy max!! I always imagine you in LA. So this is a fun shift for me visualizing you shaking your head at the libs up north :).
oh and good luck with that snow scene. lol.
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