In his recent speech calling for legislation to stop corporate inversions, President Obama added fuel to the misperception that when a company moves its headquarters to another country it avoids paying U.S. taxes. He...
- Map: Film Tax Credits by State, 1992 - Present (April 2010)
Map: Film Tax Credits by State, 1992 - Present (April 2010)
In the last decade, state governments have enacted numerous movie production incentives (MPIs), including tax credits for film production. MPIs are popular with state officials and many of their constituents but often escape routine oversight about benefits, costs and activities. Based on fanciful estimates of economic activity and tax revenue, states invest in movie production projects with small returns and take unnecessary risks with taxpayer dollars.
MPIs fail to live up to their promises to encourage economic growth overall and to raise tax revenue. States claim MPIs create jobs, but the jobs created are mostly temporary positions—often transplanted from other states—with limited options for upward mobility. Furthermore, the competition among states transfers a large portion of potential gains to the movie industry, not to local businesses or state coffers.
A Primer on the Quill Physical Presence Rule, the Streamlined Sales Tax Project, State “Amazon” Tax Laws, the Hybrid Origin-Sourcing Proposal, and Proposed Federal Legislation
- The Marketplace Fairness Act (MFA...
- Missouri’s 2014 tax package cuts income tax rates by 0.1 percentage points each year for five years starting in 2017, provided certain revenue conditions are met.
- The bill’s revenue impact is...
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