HOLLYWOOD LIBERAL DEMOCRATS AGAINST CORPORATE WELFARE -- EXCEPT WHEN IT'S THEIR CORPORATIONS
How many Louisiana residents voted to financial Brad Pitt’s next movie to the tune of $27 MILLION dollars and change?
According to the New York Times, the bastion of liberal media reporting …
“One of the most shocking bills has come due in Louisiana, where residents are financing a hefty share of Brad Pitt’s next movie — $27,117,737, to be exact, which the producers will receive by cashing or selling off valuable tax credits.”
Corporate welfare is corporate welfare: whether it goes to Countrywide Funding or a Hollywood studio, top heaving with executives and household-name talent …
It is no surprise that public money has been spent, often inappropriately, to support the arts without the specific permission of its citizens.
“As the number of movies made under these plans multiplied in recent years, the state money turned into a welcome rescue plan for Hollywood at a time when private investors were fleeing the movies. But the glamour business has not always been kind to those who pick up the costs, and states are moving to rein in their largess that has allowed producers to be reimbursed for all manner of expenditures, whether the salaries of stars, the rental of studio space or meals for the crew.”
While Louisiana, one of the most corrupt state governments, sees its former film commissioner off to prison …
“Louisiana, one of the most assertive players in the subsidy game, wound up covering that outsize piece of the nearly $167 million budget of Mr. Pitt’s “The Curious Case of Benjamin Button” — the state’s biggest movie payout to date — when producers for Paramount Pictures and Warner Brothers qualified the coming movie, a special-effects drama, under an incentive that has since been tightened. Separately, Louisiana’s former film commissioner is set to be sentenced in January to as much as 15 years in federal prison for taking bribes to inflate film budgets (though not that of “Button”) and, hence, pay higher subsidies.”
Michigan …
“Michigan, its own budget sagging, is in the middle of a hot political fight over a generous 40 percent rebate on expenditures to filmmakers that was carried out, with little opposition, only last April. Producers of films for studios like Warner Brothers and the Weinstein Company rushed to cash in, just as homegrown businesses were squeezed by a new business tax and surcharge. Rebellious legislators from both parties are now looking to put a cap on the state’s annual film spending, which some have estimated could quickly hit $200 million a year.”
Rhode Island …
“In Rhode Island, meanwhile, the rules have toughened considerably. That happened after The Providence Journal reported in March that producers of a straight-to-DVD picture called ‘Hard Luck,’ which starred Wesley Snipes and Cybill Shepherd, had picked up $2.65 million in state tax credits on a budget of $11 million, even though it had reported paying only $1.9 million of the total to Rhode Islanders.”
Justification?
The argument that film crews bring money into the state and community as well as create jobs is somewhat bogus. Principal photography, with the high-priced talent on-set, is always minimized to reduce costs, while the second unit, without the stars on-set” is much longer lasting.
It would make sense if the money that comes into the state was exceeded by the outflow in funds and tax credits. Or if the jobs were longer lasting.
“ ‘With this much money involved, there’s going to be a temptation to hype budgets,’ said Peter Dekom, a veteran entertainment business lawyer who is an adviser to New Mexico’s incentive program.”
“The vogue for state film subsidies appears to have started in Colorado early this decade, with a briefly financed Defense Against Canada law that was devised to win production back from Vancouver and Toronto. Louisiana and New Mexico soon came on board.”
“By this year, about 40 states were offering significant subsidies, turning the United States into what the Incentives Office, a consulting firm in Santa Monica, Calif., has called the New Bulgaria. It is a reference to what was once the film industry’s favorite low-cost production site.”
“Virtually all of the programs use a state tax system to reimburse producers for money spent on movies or TV shows shot in the state. Some, like Michigan’s, simply refund a percentage of expenditures to the producer. Others, like Louisiana’s, issue a tax credit that can reduce the taxes a production pays or be sold to someone else. Either way, the state gives up revenue that otherwise would be collected to put money in the producer’s pockets.”
“Advocates, of course, argue that these programs create jobs.”
“One of the country’s most successful programs is in New Mexico, which has backed movies like the Oscar-winning ‘No Country for Old Men’ and next year’s ‘Terminator Salvation,’ the latest sequel in the action series, with a reported budget of $200 million.”
“New Mexico officials boast of having used a 25 percent production cost rebate to build a local film industry that has attracted more than $600 million in direct spending since 2003, and an estimated $1.8 billion in total financial impact, as of last June. And in fiscal year 2008, the productions in the state generated 142,577 days of employment, up from 25,293 in 2004.”
Above the line personnel, executives, stars and major functionaries rarely live in the area where the films are produced. Key personnel are flown to the set and paid a salary, plus a per diem for expenses. Local pick-up labor and craftsmen are hardly worth the effort of sponsoring films.
Bogus calculations based on employment man-days or total budget are unrealistic, even though they are commonly used to justify film commission activities. Even counting the money spent on location pales in comparison to executive and talent compensation.
And what does the taxpayer get in return? Perhaps a major pain-in-the-butt disruption of public facilities and roads while shooting? Momentary prestige of local media coverage? In my book, it is not worth the time and trouble.
There is no reason why the taxpayers should subsidize a Hollywood which is hyper-partisan and mostly democrat. Especially since much of the money may be spent of stars which are openly hostile to the American way of life and embrace leftist dictators and thugs. Perhaps they get that way because of the pervasive influence of the unions which are mostly leftist and thuggish.
Hollywood is famous for more than films …
Hollywood is home to smoke and mirrors accounting in which a wildly profitable film at the box office never seems to recoup enough money to pay those with trailing points by using such artificial devices as rolling breakevens and adjusted gross receipts. Even major stars often need to sue or settle for a share of their purloined profits.
Hollywood is also home to a large collection of tax evaders who receive goodie gift bags containing thousands of dollars worth of products – and yet fail to pay their fair share of taxes on this free swag. It is hard to believe that these are the same people who think ordinary citizens should be hit with a tax increase.
Consider the notoriously cheap, but ultra-wealthy, Barbra Streisand … with all her snarky comments about non-liberal non-democrat politicians. This should be the poster girl for cutting out all Hollywood subsidies. The ultimate “do as I say, not as I do,” political commentator.
What can YOU do?
Demand that your local and state politicians disband their film commissions and return the money to the public treasury to repair or replace the crumbling infrastructure or to simply reduce the cost of borrowed funds used for these purposes. Hollywood will continue to spend money – mostly on expensive talent who are increasingly unable to attract the audience numbers of their youth.
Demand that the freebies handed out a “gifting suites” and major Hollywood events be taxed as income to the recipients or that the sponsor pay the retail value equivalent of the local and state sales tax.
Start demanding that special perks, not available to the ordinary citizen, be eliminated in favor of spending the public’s money in a more prudent manner.
It is time to watch the public purse. If Hollywood wants to decry corporate welfare, let the clean up being with them.
-- steve
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Reference Links:
States’ Film Production Incentives Cause Jitters - NYTimes.com
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