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Included among Gov. Jim Doyle’s many suggestions for ameliorating the disastrous state of Wisconsin’s budget shortfall was a proposal to end a film tax break for film companies that shoot in Wisconsin. Doyle argued that in place of the tax credit — which can reach up to 25 percent of taxes paid — a $500,000 credit should be instituted to lure film companies to the state.
The move follows a controversy ignited by the recent filming of “Public Enemies” in the state. According to Department of Commerce Communication Director Tony Hozeny, benefits from the credit went to covering services such as chauffeurs and hair treatment for “Public Enemies” star Johnny Depp, and he said the tax break needs to be changed immediately.
We are astounded at the poor logic inherent in this proposal. Attempting to cut a tax break which induces large film companies — and their accompanying large wallets — to work in the state seems a very poor way to encourage job creation. It bears noting that it is impossible for the state of Wisconsin to lose money on such breaks, given film companies would not have come here at all, denying the state government its tax dollars and the local economy a fresh infusion of cash. Although the state returned $4.6 million to “Public Enemies” via the break, the economic benefits from the credit are invaluable in this time of job insecurity and low growth.
However, beyond the dubious economic thought put into Doyle’s measure, it strikes us as fundamentally silly that one film has been used as a universal indicator of whether the tax break was an intelligent idea. While we are willing to accept the tax break may not be perfect or in the long term, any responsible analysis of policy requires far more than just one case before drawing conclusions. Doyle should be held to this minimally strict standard, lest his knee-jerk reaction deny the state both dollars and jobs.
We are also stunned by pandering rhetoric surrounding the issue. Arguing taxpayers footed the bill for Depp’s chauffeur and hair services is disingenuous and counterproductive. Given the tax money returned to the cast was paid by the cast in the first place, it is dishonest to suggest Wisconsin residents somehow were shafted by corporate interests. We hope this isolated piece of intelligent legislation in an otherwise utterly confused budgetary mess will be preserved, or at least more carefully considered.
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Don’t tax you, don’t tax me, tax the guy behind the tree!
We’re constantly told that taxes don’t matter to business and investors, but listen to that noted supply-side economist, Alec Baldwin. The actor recently rebuked New York Governor David Paterson for threatening to try to help close the state’s $7 billion budget deficit by canceling a 35% tax credit for films shot in the Big Apple.
“I’m telling you right now,” Mr. Baldwin declared, “if these tax breaks are not reinstated into the budget, film production in this town is going to collapse, and television is going to collapse and it’s all going to go to California.” Well, well. Apparently taxes do matter, at least when it comes to filming “30 Rock” in Manhattan.
Believe it or not, Mr. Baldwin’s views are shared across the movie industry, which is pleading in state capitals across the country for most-favored-tax status. Hollywood productions are highly mobile and can film just about anywhere. So they have taken to shopping around the country — and the world — for the most lucrative tax avoidance deal.
http://online.wsj.com/article/SB123698885439126181.html
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Do you guys even read what the newsroom writes?
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Gosh! Big Surprise!
The denizens of Hollywood are all good Socialists, until they have to forfeit some of their income and pay taxes! Then they shop the States with the lowest film production costs like the final contestants on American Capitalist Idol!
Y’all embraced marxist class and economic warfare when you elected our wealth redistributing Teleprompter In Chief. So what is wrong with Johnny Depp, Alec Baldwin, Tina Fey and the rest of the limoliberals paying their “fair share” of the exhorbitant taxes they actively support? Why shouldn’t Nancy Pelosi pay to fly commercial airlines for her various junkets and joy trips, instead of commandeering expensive US military aircraft for her personal use? If you were incensed with the AIG “bonuses”, these social injustices should have you frothing at the mouth!
Today, we are told that yet another Obama cabinet appointee is in tax cheat trouble. WASHINGTON (AP) - Health and Human Services nominee Kathleen Sebelius recently corrected three years of tax returns and paid more than $7,000 in back taxes after finding “unintentional errors”. Like Tim Geitner, Tom Daschle, Cris Dodd, Barney Fwank, Charles Rangel and so many other prominent Obama Democrats identified in the last 3 month, getting their taxes correctly filed and paid seems to be a major problem with the Democrats. If the “errors” included as many over payments as underpayments, we might conclude that they were unintentional. But they were ALL “errors” of underpayment, indicating a high probability of willful deceit.
If they are too stupid to correctly fill out their own tax forms, they should not be trusted with running the US government and economy et. al. If they were deliberately cheating, they should be prosecuted to the fullest extent of the law. That would demonstrate “fairness” and Obama’s much touted “concern for the little guy”. Don’t hold your breath…
“Send in the Clowns. Don’t bother, They’re here!”