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Film Industry Wants California To Cut Its Taxes

From the Daily Caller:

Hollywood asks California to cut taxes for the film industry

Breanna Deutsch | 02/17/2014

… Film Works, an entertainment-industry advocate organization, recently launched an online petition asking California’s film and TV enthusiasts to lobby lawmakers to create greater incentives for production to stay within state borders.

Huh. All we ever see is Hollywood celebrities saying they want the government to take more money in taxes. Maybe they aren’t talking about their own money.

While operating costs in California have grown more expensive over the past decade, other states and countries have established film tax credits in an effort to bring production to their territory.

If California does not pass similar legislation, Film Works warns, the state will lose hold of one of its most iconic industries. “We are now greatly concerned that the state’s status as the epicenter for motion picture production is at risk,” the petition reads.

“If policymakers fail to make our state more competitive, the film industry in California will face the same fate as other industries, including aerospace, which resulted in hundreds of thousands of jobs permanently leaving California for other states.”

From 2005 to 2013, California’s share of the one-hour TV series market declined from 64 percent to 28 percent, resulting in the loss of an estimated 8,500 jobs, the Film Works petition notes.

According to a report conducted by the San Francisco Film Commission, these job losses not only impact those who were formerly employed, but take a negative toll on the economy as a whole. The study found that every job lost in the film industry results in a loss of $112,000 in spending in the local economy.

But driving other industries out of the state, like the oil industry, doesn’t hurt the economy at all.

And in the past 15 years, feature-film production in Los Angeles alone has declined almost 60 percent.

In an attempt to curve the drop in production, California passed a $100 million film tax incentive in 2009, but it was not enough to keep producers within state borders.

Gosh, those Hollywood types are greedy.

A growing list of states, including Georgia, Louisiana and New York, have established tax incentives that far exceed those passed in California.

Notice how New York cuts taxes for movie making, but not for the great unwashed.

These business-friendly policies have added millions to states’ economies. Louisiana is just one example of this phenomenon. The year before it enacted its tax credit (2002), production spending in Louisiana was only $3.5 million. By 2010, that figure had jumped to $674 million, making for a 19,000-percent increase…

Among many others, the petition’s supporters include Warner Bros, FilmLA, the city and county of Los Angeles, and the national labor union representing working actors, SAG-AFTRA.

Even though the unions are a bigger problem than taxes. Louisiana, the success story cited here, for instance, is a right to work state. Which means, among other things, no Teamsters.

Which is a far bigger savings than any tax breaks. Especially, since Hollywood accountants are famous for their ability to hide profits.

This article was posted by Steve Gilbert on Tuesday, February 18th, 2014. Comments are currently closed.

6 Responses to “Film Industry Wants California To Cut Its Taxes”

  1. captstubby

    or maybe the producers have had enough high salary actors and directors making crap pictures and not even breaking even.

    but i do agree that California does have high tax’s,

    with all those mandatory if you what to work in this town Democrat Fundraisers and Political Contributions must be tough.

    • Rusty Shackleford

      I’m pretty sure, at this point in time, the movie industry has made enough money but then, since they didn’t build that industry, I think they should, you know spread their wealth around.

  2. dasher

    GA is a right to work state too.

    D.

  3. Right of the People

    Boo-f**king-hoo for the film industry. They stopped making good films decades ago, maybe if everyone stopped treating these a-holes like some kind of gods and goddess because they can stand up and make believe they’re someone they aren’t we could get make to movies that have real plots and stories.

    Kalifornia is a lost cause. Time to write them off as a lost cause, Marxist bastards.

    • captstubby

      “Revenue from new-release DVDs fell 50% last year from 2004, the year the home-entertainment market peaked, according to IHS Screen Digest. But catalog sales fell only 23%. As a result, catalog sales accounted for 44% of all film DVD and Blu-ray revenue last year, 10 percentage points higher than in 2004.”

      http://online.wsj.com/news/art.....2207740838

    • Rusty Shackleford

      My passive hobby is collecting old TV series. Started with the original Star Trek series, avoided The Next Generation, got Lost In Space with everyone’s favorite liberal, Dr Smith, Voyage To The (etc etc etc), Mission Impossible, Gilligan’s Island and a lot more.

      Nice, fun, escapism. Some good story telling in some of those series….especially The Twilight Zone.


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