Senate Finance Committee Chairman Max Baucus has released a detailed proposal for international corporate tax reform, which we summarized earlier this week. While there are some improvements to current law, the proposal...
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- New Massachusetts Report Finds Film Tax Incentives Not Worth It
New Massachusetts Report Finds Film Tax Incentives Not Worth It
The Massachusetts Department of Revenue recently released a report detailing that $14.6 million in tax credits were given to filmmakers in 2010, yet the film tax-incentive program only generated $800,000 in new state revenue. While these numbers certainly make the program look like a drag on the tax code, the results could have been worse. In 2009, the special tax program gave out $82.4 million in credits, and only collected $10.4 million in revenue.
Fortunately, these sorts of tax credits (or tax expenditures) are being targeted for another look by the Massachusetts Department of Revenue. In fact, they recently created the Tax Expenditure Commission to examine each of the state's tax expenditures and consider reform. Jay Gonzalez, the Chair of the Commission, said in their October meeting:
"The tax expenditure system represents years and years of ad hoc decisions. There is no real, comprehensive rationale holding all the tax expenditures together. One goal of this Commission should be to start from the understanding that no tax expenditures are sacrosanct, in essence start from scratch."
I couldn't have said it better myself.
For more on Massachusetts, click here.
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