CNN Swallows Whole the Hollywood Tax Credit Line

In an unfortunate story about state film tax credits, CNN opened wide and let Hollywood filmmakers and state tax officials feed them a line about how great film tax credits are. The figures cited as economic benefits are baloney, and states would be better off scrapping their credit programs.

Imagine you’re running a regular in-state manufacturering or service company. You are struggling to pay your corporate taxes without laying people off during a recession, and you see a Hollywood production company waltz in, hire a few people for a few months, pay almost no taxes, then leave, all so that some politicians can get their pictures taken with Hollywood stars. What could be more galling?

Here’s a thorough report on the subject that will give legislators and reporters the real scoop, and we’ve blogged extensively on this absurd boondoggle in several states.