Even if you never go to movies, you are contributing to Hollywood production budgets. That is because while states are cutting services to plug massive budget shortfalls, many are still giving away tens of millions of dollars in tax incentives to production companies that shoot movies and TV shows inside their borders. Now some states are starting to rethink those subsidies.
Overall, states gave away $1.8 billion in incentives to Hollywood between 2006 and 2008. Filmmakers bid states against one another and reap the benefit. States are engaging in this escalating bidding war to win over a marginal amount of business. It's a race to the bottom.
Kansas and Iowa have suspended their programs. Arizona's will expire this year and Pennsylvania reduced the amount of its credit. Supports of the tax credits say they help create jobs and boost local economies.
What say You?
No comments:
Post a Comment