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Hollywood Continues to Flee California at Alarming Rate
Variety.com ^ | 3/7/2014 | Dave McNary

Posted on 03/07/2014 8:14:48 AM PST by Mad Dawgg

When Paul Audley took the job as president of FilmL.A. in late 2008, he was astounded to discover that physical production on the $70 million pic “Battle: Los Angeles” wasn’t being done in Los Angeles.

“It stunned me that the movie was shooting in Louisiana, and that the state of California was letting this happen,” he recalls.

In the subsequent five years, the situation has only worsened, despite the film production incentive program California enacted in 2009, which provides for $100 million a year in tax credits for what’s usually 20% of production costs. That’s significantly smaller than programs offered by other states such as New York, which offers $420 million a year in credits for 30% of production costs.

The trend has been mounting for high-profile films set in the Golden State to be filmed almost entirely outside California, due to lucrative tax breaks elsewhere that producers can’t turn down. One key component of new legislation to strengthen California’s incentive program, introduced Feb. 19, would raise to $100 million the current budget cap of $75 million on eligible productions. To drive home the need for state support, attendees at a Feb. 22 rally in Burbank held by Hollywood unionists were handed petitions to send to Sacramento citing that only one of 41 big-budget feature films shot in 2012 and 2013 was shot entirely in California.

(Excerpt) Read more at variety.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
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So High Taxes and Government Regulations cause production to locate elsewhere?


1 posted on 03/07/2014 8:14:48 AM PST by Mad Dawgg
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To: Mad Dawgg

Liberals and democrats forget that eventually, you get what you vote for.


2 posted on 03/07/2014 8:16:14 AM PST by edcoil (Realism is only a socially accepted form of pessimism)
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To: Mad Dawgg
So High Taxes and Government Regulations cause production to locate elsewhere?

No, even STUPIDER states offering even BIGGER taxpayer subsidies have done this.


3 posted on 03/07/2014 8:16:54 AM PST by Buckeye McFrog
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To: Mad Dawgg

Unnintended consequences: Big government loses its biggest advocates due to big government. Big government good for thee, not for me.


4 posted on 03/07/2014 8:18:32 AM PST by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: Buckeye McFrog
"No, even STUPIDER states offering even BIGGER taxpayer subsidies have done this."

Ahhh but you see if the Govt. Regs and Taxes weren't so high in the first place there would be no need for subsidies now would there?

5 posted on 03/07/2014 8:18:50 AM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: Mad Dawgg

I like your screen shot taken from Casablanca.
Likely the LAST Hollywood film that was shot without
a taxpayer subsidy of any kind.


6 posted on 03/07/2014 8:20:17 AM PST by Buckeye McFrog
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To: Mad Dawgg

For half a century, almost every movie and television show had dry rolling hills covered with oak, California walnut, and eucalyptus trees in the background because it was filmed in SoCal. Then, starting in the late 80s, it seemed that everything was being filmed in wet, evergreen-covered Washington State.


7 posted on 03/07/2014 8:20:44 AM PST by Jeff Chandler (Obamacare: You can't make an omelette without breaking a few eggs.)
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To: Jim Robinson
Unnintended consequences: Big government loses its biggest advocates due to big government. Big government good for thee, not for me.


8 posted on 03/07/2014 8:21:11 AM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: Mad Dawgg

Why don’t they just TAX the Studios anyway, for Not Filming in California if they have an office or a “presence” in the State?


9 posted on 03/07/2014 8:23:19 AM PST by eyeamok
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To: edcoil

yes..bunch of idiots and criminals chasing out jobs.


10 posted on 03/07/2014 8:23:36 AM PST by fabian (" And a new day will dawn for those who stand long, and the forests will echo in laughter")
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To: eyeamok
"Why don’t they just TAX the Studios anyway, for Not Filming in California if they have an office or a “presence” in the State?"

I believe other states did exactly that with Amazon.

11 posted on 03/07/2014 8:25:14 AM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: Jeff Chandler

I think the first dramatization of the 9/11 attack in NYC was done in Toronto.


12 posted on 03/07/2014 8:28:05 AM PST by Calvin Locke
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To: Mad Dawgg

Well, as a proud native of California let me just say that these
Hollywood movie tycoon types (mainly from somewhere else)
reflect a certain unique style. They financially support politicians
who raise taxes and then take their business elsewhere because
our state taxes are too high. If only I could only afford to take MY
business elsewhere while keeping my residence in the state of
my birth.


13 posted on 03/07/2014 8:29:19 AM PST by Sivad (NorCal red turf)
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To: Jeff Chandler
was being filmed in wet, evergreen-covered Washington State.

Actually British Columbia. Back when the Canadian Dollar was trading around 75-80 cents, it was a heckuva deal.


14 posted on 03/07/2014 8:30:03 AM PST by Buckeye McFrog
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To: Jeff Chandler

Or British Columbia.


15 posted on 03/07/2014 8:30:14 AM PST by Clemenza (Lurking)
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To: Mad Dawgg

The article doesn’t mention the real reason film production has moved out of California to other locations: those other locations are union-free. All the tax breaks in the world aren’t going to affect that particular issue one iota.


16 posted on 03/07/2014 8:30:23 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Sivad

California could cut their taxes to zero, and if Michigan were still offering to underwrite their production costs with taxpayer money, they’d go to Michigan.


17 posted on 03/07/2014 8:30:51 AM PST by Buckeye McFrog
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To: Mad Dawgg

So these leftist rats are fleeing the ship and spreading plague to all the saner states which they now infest. I wish to put a big sign at the Texas border “Hollywood Scum Not Welcome.”


18 posted on 03/07/2014 8:31:06 AM PST by RightOnTheBorder
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To: catnipman

Large numbers of films are made here in Pittsburgh, and everything from the cameraman down to the girl who does their nails is a union gig.

I had an obnoxious Teamster neighbor who always got work hauling their stuff and their stars around town.


19 posted on 03/07/2014 8:32:22 AM PST by Buckeye McFrog
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To: Mad Dawgg

Not surprising, since no one wants to wear a condom.


20 posted on 03/07/2014 8:33:23 AM PST by Mr Ramsbotham (Laws against sodomy are honored in the breech.)
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To: eyeamok
Why don’t they just TAX the Studios anyway, for Not Filming in California if they have an office or a “presence” in the State?

Generally the leftist degenerate cowards won't go after anyone with the ability and will to defend themselves and the willingness to completely destroy their attackers.

In other words, people exactly like themselves.

21 posted on 03/07/2014 8:34:14 AM PST by Navy Patriot (Join the Democrats, it's not Fascism when WE do it, and the Constitution and law mean what WE say.)
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Why don’t they just build a wall so they can’t leave?

A financial fire-wall also that would review electronic transactions crossing state lines?


22 posted on 03/07/2014 8:35:13 AM PST by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: Buckeye McFrog
"California could cut their taxes to zero, and if Michigan were still offering to underwrite their production costs with taxpayer money, they’d go to Michigan."

Ahh but see AGAIN you left out the other half of the equation the Govt. Regs. Like it being mandatory that you pay Prevailing Wage for certain work (A.K.A. Union Regs)

California AND Michigan both have such laws in place.

23 posted on 03/07/2014 8:36:10 AM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: Sivad

Best post this thread! You hit the nail precisely on the head!


24 posted on 03/07/2014 8:36:15 AM PST by Cen-Tejas (it's the debt bomb stupid!)
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To: Mad Dawgg
Hollywood communists are a disgrace to America. Hope where they move that the communists element gets crushed real quick before they pollute the air.
25 posted on 03/07/2014 8:38:43 AM PST by Logical me
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To: RightOnTheBorder

In truth, once so-called liberals go to saner states, they are CURED of the insanity of liberalism.


26 posted on 03/07/2014 8:38:44 AM PST by Biggirl (“Go, do not be afraid, and serve”-Pope Francis)
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To: Buckeye McFrog

Whether it is just tax advantages or the underwriting of the
projects themselves, the point about liberal tycoons and
liberal politicians remains, doesn’t it?


27 posted on 03/07/2014 8:38:46 AM PST by Sivad (NorCal red turf)
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To: Buckeye McFrog

Tax payer subsidies?!?!? What world do you live in?

THERE IS NO SUCH THING AS A COPORATE TAX!!! Businesses and coporation only collect taxes from their customers. It is lilke saying your car pays a tax or your house. Copoprations are faceless entities, and like your car or house, you pay the tax, not the inanimate object.

If there were no “coporate tax” the pretense that someone else pays the tax would be removed.

Toocqueville noted that democracy (yes, we are supposed to be a constitutional republic) was doomed when voters could be bribed with their own tax dollars. Corporations pay taxes with your purchase dollars. They act as tax collectors.

The reason coporatioins seek rosier tax deals is it gives them an unfair advantage over other competitors. Amy’s Kitchen was going to build in Sonoma County, but when face with taxes, permits, and impact fees well in excess of $20 something million, they went to NJ. They could not be competitive with that added expense even if they could colelct it from consumers (read you and me). However, locals say good riddance as they were merely being exploited, though 1000 jobs are now elsewhere.

This is also why corps. go overseas.

Sorry if I sounded a little sharp. Bottom line, we pay everything in one way or another.


28 posted on 03/07/2014 8:40:12 AM PST by rey
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To: Mad Dawgg

So the labor unions that fight for more taxes and regulation are now fighting for less taxes and regulation?


29 posted on 03/07/2014 8:43:58 AM PST by Rusty0604
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To: Mad Dawgg

Unfortunate. They should be nailed to the ground in the state they helped screw up.


30 posted on 03/07/2014 8:45:45 AM PST by ZULU (Magua is sitting in the Oval Office. Ted Cruz/Phil Robertson in 2016.)
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To: Rusty0604
"So the labor unions that fight for more taxes and regulation are now fighting for less taxes and regulation?"

Apparently you can't stop reality seeping in through the cracks of the "pink hive"...

31 posted on 03/07/2014 8:46:23 AM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: Mad Dawgg

You misspelled Hollyweird in the title.


32 posted on 03/07/2014 8:49:11 AM PST by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: Clemenza; Buckeye McFrog; Calvin Locke

And Canada has a pretty good film industry in its own right. I have recently viewed some low budget Canadian films that were done as well as any Hollywood production.


33 posted on 03/07/2014 8:50:57 AM PST by Jeff Chandler (Obamacare: You can't make an omelette without breaking a few eggs.)
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To: rey

Point accepted. Corporations at the end of the day do not pay any taxes.

My point was that idiot politicians here in Pennsylvania, in Ohio, in Michigan, apparently in Louisiana, and other places, all throw taxpayer money at these outfits. I know because when they are thinking of filming here in Pittsburgh they first try and milk some more subsidies by threatening to go to a state that is offering them more.


34 posted on 03/07/2014 8:54:24 AM PST by Buckeye McFrog
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To: rey
THERE IS NO SUCH THING AS A COPORATE TAX!!! Businesses and coporation only collect taxes from their customers.

Been trying to get this across on blogs for years. Americans are the dumbest box of rocks. They just don't seem to understand that, for example, taxes are raised on a bakery and the cost of a muffin goes up. Who pays the tax. The consumer. THE CONSUMER. NO BUSNESS PAYS TAXES!!!!!

How do we teach Americans that is beyond me.

35 posted on 03/07/2014 8:59:51 AM PST by Logical me
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To: Jeff Chandler

My problem with US locales set in Canada are the Canadian accents that slip through.

Heck, even Poppy Montgomery’s Aussie accent pops up in her NY cop show.


36 posted on 03/07/2014 9:02:18 AM PST by Calvin Locke
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To: Buckeye McFrog

Don’t forget unions. CA union shoots are 1/3 more expensive, although the dirty little secret is that 70% of the filming done in CA is non-union.


37 posted on 03/07/2014 9:04:04 AM PST by LS ('Castles made of sand, fall in the sea . . . eventually.' Hendrix)
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To: Mad Dawgg

So LIEberal Producers and Film Industry who promote and vote for DemoRat leftist policies flee the state they voted in their ‘utopia’ to obtain tax breaks and incentives in other states. Buncha hypocrites and phoney 1%er rich, leftist elitists.


38 posted on 03/07/2014 9:07:29 AM PST by tflabo (Truth or Tyranny)
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To: Mad Dawgg

Where are they going? Please tell me they are NOT coming to Texas!!!!!

Get Out Hollywood liberal O-bots!!! Go to DC to be close to your King!


39 posted on 03/07/2014 9:17:54 AM PST by austinaero
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To: Logical me

“THERE IS NO SUCH THING AS A COPORATE TAX!!! Businesses and coporation only collect taxes from their customers.

Been trying to get this across on blogs for years. Americans are the dumbest box of rocks. They just don’t seem to understand that, for example, taxes are raised on a bakery and the cost of a muffin goes up. Who pays the tax. The consumer. THE CONSUMER. NO BUSNESS PAYS TAXES!!!!!

How do we teach Americans that is beyond me. “

If Bakery A gets a special tax break for being minority owned, or is in a special class,,then it’s possible their taxes are lower than than Bakery B who, just for sake of discussion is operated by a white, Christian male. ....Guess who needs to raise their prices MORE just to keep the profit margin the same? Bakery B. Higher prices may lead it to be less competitive...so when you say business pays no taxes, that’s true,,but not all are taxed the same. Bakery A can hold itself out as owned by people who aren’t so interested in the profit, who are more benevolent, etc,,even though the reality is, Bakery A is getting more of a break....

Therefore they can spout that Bakery B is charging HIGHER prices because they are ‘greedy’....and there you go.

Taxes and politics cannot be separated from each other. There is still wiggle room for exploitation, even though businesses do pass the cost along....


40 posted on 03/07/2014 9:27:56 AM PST by austinaero
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To: Logical me; rey

The problem is, that no matter where there money ends up coming from (us)it drives industry away from areas with a corporate tax burden to areas with less corporate tax burden.

When they have to pass the cost on to the consumer and the price for a product goes up, people begin to be more discriminating in their choices. They choose to either buy over a border (where that is possible) and where it it not possible, they preferentially buy similar products from another country.

Government, bureaucracy and,yes, “corporate taxes” drive jobs to “other” states and other countries where they can be more cheaply produced.

Add in union costs, local,state and federal bureucratic loading on everything from environmental policies and packaging of products to the types of lightbulbs and toilets that must be used in the facilities, and is it any surprise that industry has been fleeing to other countries?

Until we directly attack those issues, our industrial base will continue to shrink, while that of our foes expands.


41 posted on 03/07/2014 9:37:37 AM PST by rlmorel ("A nation, despicable by its weakness, forfeits even the privilege of being neutral." A. Hamilton)
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To: edcoil

The problem is this is the equivalent of a tumor that metastasizes.


42 posted on 03/07/2014 9:41:57 AM PST by Kozak ("It may be dangerous to be America's enemy, but to be America's friend is fatal" Henry Kissinger)
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To: catnipman

That’s right—it’s more about moving to non-union states. Wilmington, NC and Pittsburgh were huge film locales in the mid-90’s due to them being non-untion for movies. Louisiana seems ideal—think of the low cost of business there.


43 posted on 03/07/2014 9:42:43 AM PST by MWFsFreedom
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To: austinaero

CO*R*PORATE


44 posted on 03/07/2014 9:43:08 AM PST by AppyPappy
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To: Calvin Locke
Heck, even Poppy Montgomery’s Aussie accent pops up in her NY cop show.

Her Ho-Ho the Clown red hair has me so struck I never noticed her accent.

That show still on? Haven't seen it in a while.

45 posted on 03/07/2014 9:44:17 AM PST by Vinnie
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To: Logical me
Who pays the tax. The consumer. THE CONSUMER. NO BUSINESS PAYS TAXES!!!!!

To an extent. But it's not always easy for smaller companies to raise their prices enough to cover the cost of increased taxes and regulations - often they just have to eat the difference by hiring fewer employees, delaying expansion plans, or simply ending up with less net income.

What is disturbing in recent decades is the extent to which liberals, when confronted facts like these about the effects of their policies, express the same outright anger and hostility toward small business owners that they used to aim primarily at giant corporations. The belief that "All business owners are crooks!" used to be uncommon in America, but public education has apparently made it the new normal.

46 posted on 03/07/2014 9:50:23 AM PST by Mr. Jeeves (CTRL-GALT-DELETE)
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To: Mad Dawgg

It’s about time they clean out the cesspool LA may get back to normal.


47 posted on 03/07/2014 9:59:10 AM PST by Vaduz
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To: Buckeye McFrog

Not really. The offsets are revenues that would not otherwise be realized.


48 posted on 03/07/2014 10:05:57 AM PST by Robert DeLong (u)
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To: Sivad

“Hollywood movie tycoon types (mainly from somewhere else)”

Right on the mark! There are no “native” Hollywood moguls anymore. They all come from New York now that they’ve completely fouled their nests there.


49 posted on 03/07/2014 10:26:39 AM PST by vette6387
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To: Mad Dawgg
The Socialist movie-makers puke out anti-capitalist/pro-totalitarian dictatorship films at an alarming rate and then go somewhere else because the policies of that they are begging for cause their films to be too costly.

Every studio should be sent a 55 gallon drum of irony smothered in heavy malaga syrup.

50 posted on 03/07/2014 10:56:51 AM PST by PATRIOT1876
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