Skip to comments.Tax breaks for Hollywood should be scaled back, says report prepared for Cuomo tax commission
Posted on 11/21/2013 9:56:03 PM PST by smokingfrog
A unpublished report says New York is writing tax credit refund checks to film and television studios that far exceed the amount of taxes they owe the state.
The report, prepared for a tax reform commission appointed by Gov. Andrew Cuomo, suggests the program should be scaled back.
"The growth in the industry comes at the expense of higher taxes for other taxpayers or lower spending on state services and investments, possibly reducing activity in other sectors of the economy," the report concludes.
It's a 137-page addendum to a study by the tax commission co-chaired by former state Comptroller H. Carl McCall and Peter J. Solomon.
The tax credit is set up as a refundable credit, which means the state writes a check to the film studio if it earns more in tax breaks than it owes in taxes. The kinds of qualifying TV shows were also changed this year to allow variety and talk shows at the same time New York was hoping to bring the "The Tonight Show" back from California.
The Post-Standard earlier this year published a series of stories on the film tax credit that said the state was lavishing credits on companies, including campaign donors, without releasing to the public how much each company was benefiting.
(Excerpt) Read more at syracuse.com ...
Oh yeah, for sure.
This entire scheme sounds like a slush fund.
Not only should they not get tax breaks, they should be hit with carbon surcharges. Making a movie leaves a HUGE carbon footprint. Make them put their money where their mouth is!
It seems that nearly every jurisdiction offers tax breaks (or other inducements) to the film industry. There is no justification for this.
All well and good. Of course we’re talking gnats in an elephant holding yard.
Now there’s a gargantuan problem to solve.
It is and has been welfare for the rich. Jenny Grandstand got Hollywelfare passed in Michigan years ago.
I wouldn’t say they need to be scaled back so much as given to everyone across the board.