CNN Swallows Whole the Hollywood Tax Credit Line
March 13, 2010
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?