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.
Well, I’m for it. Without them, who would bring us the next gay comic book hero movie?
The Hollywood Hypocrites now film a HUGE percentage of TV and movies in Canada, to avoid US Union rules.
Why not? Every other industry gets it, especially Wall Street.
Or, they could produce movies people want to see, pay actors a reasonable fee and somehow get it into a theater for less than $14/a seat.
I mean, “The Lone Ranger”? Really?
Well then kick the Motion Picture Association of America the F out of the State. Damn bunch of communists bastar@s anyway.
“The Hollywood Hypocrites now film a HUGE percentage of TV and movies in Canada, to avoid US Union rules.”
what do you think I’m doing in Canada right now? To see Vancouver’s East side?
Cut taxes for everyone and call it good.
Having had my 15 minutes when I was much younger, let’s just say I’m glad I found flying more attractive than chasing minor roles. Can’t tell ya how many times I had to tell acquaintances, “No, you are not an actor, you are a dishwasher.”
And I’m alive, unlike several friends swallowed by the Hollywood “machine”.
Hollywood propagandists want the government gravy to flow more freely
Pay your fair share, Hollywood.
You are making Sharknado Part II: Sharktsunami!!!
The TV/movie unions here in canada are even more powerful than the ones in the US. It’s not entirely a union issue but it’s how much subsidies you can get from the local govt. A very good example is how “Push” was filmed entirely in HK when the cast was mostly white.
EVERY sizeable corporation in EVERY industry wants perpetual public subsidies.
Capitalism is SOOOOOO dead...
No, we will shoot that in Malibu.
The MPAA has no say whatsoever where movies are made. Pure bluff. Producers will make movies (esp. indie producers) where there are no unions and THEN look at the tax credits. The only ones who care about the tax credits are the investors, with good reasons. But MPAA? Don’t make me laugh. They can’t enforce anything.
AH Vancouver the Seattle film set—lol. Hope you’re having fun up there, It’s gorgeous and well subsidized and incentivized.
lol
Ice Road Trucker Shark Attack?
68 degrees which is a miracle, and the sun’s up. And we’re supposed to have a snow scene LOL. Been here before?
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