Posted on 02/09/2018 2:20:32 PM PST by davikkm
It’s baaack! A federal tax break for film, television, and theater productions that expired a little over a year ago has been revived by the budget deal signed into law by President Donald Trump Friday.
The tax break, created back in 2004, was originally scheduled to expire after just a few years. Under pressure from Hollywood, however, Congress renewed the tax break time and again. But with the election of President Trump and Republicans in control of both the House and Senate, the break was finally allowed to expire in 2017.
Except now it is back in a particularly strange and zombie-like way. The new budget law reinstates the tax break but only retrospectively, extending the tax-break to film, television, and theater productions made last year. As a result, the subsidy can no longer accomplish its professed goal of promoting film production and creating jobs–it can only act as a handout to productions already made or significantly underway.
The tax break was created by the Jobs Creation Act of 2004. Intended to shore up the U.S. film industry, which claimed it was suffering from unfair competition from Canada and other countries providing tax subsidies to television and filmmakers, Section 181 of the Internal Revenue code allowed the costs of productions costing up to $15 million to qualify for immediately expensing, rather than having them depreciate under standard amortization schedules that would apply to capital investments. That was expanded by a law signed by President Obama to allow all productions, regardless of the to coast, to immediately expense costs up to $15 million.
(Excerpt) Read more at breitbart.com ...
Hollywood should be taxed up the wazoo.
That special treatment should have been killed. Tax rates should not depend on how connected you are.
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That special treatment should have been killed. Tax rates should not depend on how connected you are.
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If it wasn’t for Social Engineering (political power), there’d be no need for the tax code
I would like to eliminate somewhere between 95% and 100% of the social engineering in the tax code. Taxes should be designed for collecting revenue, nothing more.
Hey California, shouldn’t you be going after this big Tax Break for Fat Cats and get your share??
Reality check: The swamp is only 1% drained.
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