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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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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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To: Buckeye McFrog

Just read an article that said Louisiana is now the number-one movie-making state in the U.S.


51 posted on 03/07/2014 11:03:41 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: MWFsFreedom

“Louisiana seems ideal—think of the low cost of business there.”

Louisiana is currently the number-one movie-making state in the U.S.


52 posted on 03/07/2014 11:07:09 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Buckeye McFrog
Likely the LAST Hollywood film that was shot without a taxpayer subsidy of any kind.

Do they receive taxpayer money, or just a reprieve from the punishment of taxes?

There is a difference.

53 posted on 03/07/2014 11:15:37 AM PST by Balding_Eagle (Over production, one of the top 5 worries for the American Farmer every year.)
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To: vette6387

Hey, vette, have you checked out the corvette joyride thread?


54 posted on 03/07/2014 11:16:53 AM PST by Sivad (NorCal red turf)
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To: Biggirl

Really? We used to think that too here in the once sane state
of California.


55 posted on 03/07/2014 11:50:27 AM PST by Sivad (NorCal red turf)
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To: Sivad

“Hey, vette, have you checked out the corvette joyride thread?”

No, but I will.
Have you seen this?

http://www.youtube.com/watch?v=B-gzNi6MRwI&feature=player_detailpage


56 posted on 03/07/2014 12:29:34 PM PST by vette6387
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To: Biggirl

Not true! Come to Charlottesville, VA!


57 posted on 03/07/2014 1:14:27 PM PST by gr8eman (But thermodynamics is just a social construct, created by the ruling white power structure)
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To: gr8eman

Not surprised. I see Virgina going purple or marron.


58 posted on 03/07/2014 1:17:58 PM PST by Biggirl (“Go, do not be afraid, and serve”-Pope Francis)
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To: Vinnie
The accent only occasionally appears. I tend to have the tube on in the background, so I'm more audio-oriented.

Haven't seen the show in a while.

I was married to a redhead. It's Montgomery's tattoos that I find off-putting.

59 posted on 03/07/2014 2:59:51 PM PST by Calvin Locke
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To: Mad Dawgg

Kind of like smokers moving to the non-smoking section to smoke because the smoking area is too nasty from all the smoke.


60 posted on 03/08/2014 7:08:58 AM PST by Blue Collar Christian (Vote Democrat. Once you're OK with killing babies the rest is easy. <BCC><)
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