Yesterday, the governor of Puerto Rico announced that his government’s $72 billion of debts are not payable, in advance of $1.92 billion in debt service payments due on Wednesday. This announcement follows over a year...
- The Tax Policy Blog
- The Economist Reviews State Film Tax Credit Programs
The Economist Reviews State Film Tax Credit Programs
This week's Economist magazine reviews a proposal in California to boost their film and television tax credit. The report notes that it's getting tougher to compete with Louisiana's 30 percent refundable credit or New York's $420 million annual budget to subsidize film and TV, and that independent analyses find these do little on net for job creation or economic growth.
One of their sources is yours truly:
The other answer is that handouts for moguls are not as popular as they once were. Several states have capped or scrapped their programmes; Joseph Henchman at the Tax Foundation, a think-tank, reckons they peaked in 2010. Michigan’s scheme, which some thought—absurdly—could make up for job losses in the car industry, was scaled back under a Republican governor. Despite hosting “Iron Man 3”, one of last year’s smashes, many in North Carolina want to let their state’s scheme wither. “At some point you accept that Louisiana is determined to pour its treasure into Hollywood’s pockets,” says Mr Henchman, “and you let them do it.”
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