CA: Film-industry tax break backed (by Governor)

Mercury News ^ | 2/17/05 | Kate Folmar

[NormsRevenge]

SACRAMENTO - Gov. Arnold Schwarzenegger is poised to throw his star power, and political clout, behind tax breaks for the entertainment industry aimed at keeping film productions in the state.

``It is extremely important that we continue supporting our motion picture industry and that we, as a state, do everything that we can,'' he told a mostly entertainment-industry crowd at a glittery, Hollywood-style premiere Tuesday night.

To help the state create jobs for everyone from caterers and janitors to make-up artists and gaffers, Schwarzenegger said, ``we are working right now through the legislators on a bill to give tax credits, to give tax relief, to the productions here in California.''

The occasion was the Sacramento premiere of ``Be Cool,'' which was made entirely in the state.

But the idea of a former movie star offering tax breaks to Hollywood may not have a happy ending. Despite a crowd-pleasing, job-creation script, the production will likely be panned by advocates for the poor -- who fear welfare checks will be cut as the state tries to close an $8.6 billion deficit.

Certainly, ``runaway production'' is a real concern for the entertainment industry, which employs about 500,000 Californians. Lawmakers regularly consider ways to keep California competitive with Canada and other locales, where wages, production costs and taxes are lower. By one federal estimate, runaway productions cost the nation up to $10 billion a year.

[NormsRevenge]

But the situation has improved, noted Jean Ross of the California Budget Project, which analyzes how state policies affect the poor and middle class. She cited figures from the industry-backed Entertainment Industry Development Corp. that showed Los Angeles production days increased by nearly 20 percent last year.

``At a time when we're cutting spending for education and seniors, why are we looking to provide tax subsidies for an industry that is doing quite well?'' Ross asked.

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Why, indeed?

[goldstategop]

Let em move to Vancouver and Toronto.

Denny Crane: "There are two places to find the truth. First God and then Fox News."

[Alex Marko]

Arnie is right... The film industry produces a lot of money for the state of California. You should keep them there. Business is Business, capitalism will prevail.

[kellynla]

If RINOld really had a set, he'd propose eliminating the state income tax altogether!

[WarPaint]

Runaway productions are killing California film crews (and their families) who can't take their crews and/or equipment to Canada or even to other states with local unions. CA legislators have made it, comparatively, too costly to film in L.A. For example, if you need to hire two police officers to hold traffic in Canada, L.A. will require 8 - 16 officers to do the same work. That might seem small, but add that kind of policy and costs to each department, and producers, who care only about bottom line, will take their production anywhere but L.A. Los Angeles is NOT a film friendly town.

[Logical me]

I have no objections to tax breaks to keep Hollywood here, but I do object to the liberal communist jackasses who saturate the industry with their hype. If that group moved to Canada, we would not miss them. Their acting and singing can be replaced in a heart beat by much more talented people waiting in the wings just for a chance.

[Jimbaugh]

They are bankrupting all businesses in California. Why does only the film business deserve a break?