Money talks. I hate to be cynical, but money talks. Breitbart.com reported yesterday that the production tax incentives favorable to the domestic entertainment industry enacted by Congress in 2004, extended in 2008 and scheduled to expire in 2011, have been extended through 2013. The bill passed to avoid the fiscal cliff increases taxes on 77 percent of Americans, but Hollywood gets a tax break.
The article reports:
The original tax incentive applied to productions costing less than $15 million to make ($20 million in low-income areas). The 2008 extension applies to all films, up to a deduction of $15 million (or $20 million in low-income areas). The incentive is especially generous to television series; it applies to each TV episode.
Hollywood players routinely beg the government to raise their taxes so they can pay their “fair share.”
Yet the industry moves new productions to places where existing tax breaks help its bottom line. That means plenty of shows and films are shot in states like New Mexico, which feature highly favorable tax rates, as well as destinations north of the border with similar perks.
It really is time to find some honest legislators to redo the tax code. I believe that there are a few men of principle in our government; unfortunately there are too few of them to accomplish what needs to be done.