We can only assume that the California legislature has not yet heard the news that they’ve spent the state into bankruptcy. How else can what’s going to happen on June 1 possibly be explained?
The Hollywood Reporter has the details:
That morning, movie and TV producers can drop off applications for a share of $100 million in annual state tax credits for productions that meet certain requirements and shoot in the state during the year.
What’s the rush? “We will exhaust all $100 million in tax breaks on June 1st,” Amy Lemisch, executive director of the California Film Commission said Friday morning at a commission meeting and breakfast for producers in Los Angeles.
In other words, the entire amount allocated by the state legislature for the year will be spoken for the first day that applications are accepted. Actually, more productions will seek tax breaks than is available for the year on that one day.
In case that didn’t make sense, let us sum it up for you:
The bankrupt state of California is handing out money to movie producers like they’re homeless beggers on Hollywood Blvd.
The only way this seems to make sense is if the entire state of California is now living in LaLaLand. It’s one giant horror movie produced, directed and inflicted on the state’s residents by Hollywood. None of it is real.
It’s like The Truman Show in real life and if a resident of California can escape to another state, he’ll find out he’s lived their entire life on one big movie set.
Source: Hollywood Reporter
This post was last modified on April 10, 2011
View Comments (15)
Don't forget the California legislature is completely controlled by Democrats while the majority of people in the Hollywood movie industry are ardent Democrats and big contibutors to the Party. It's crony capitalism as California taxpayers forced to subsidize a wealthy but marginal industry.
I'm not against tax breaks for industry, but I am against tax breaks for the politicians' favorite industries (read big contributors) like the film industry, the ethanol industry or GM.
I'm against all tax breaks -- the problem is they devolve immediately into a way to a way to channel money to political cronies. They implicity state: "If you will tolerate unfairness, I will give you a handout."
The only tax break I want is where all the taxes are appropriately low for everyone because government is under control, and under the control of the people.
The only answer is to increase these credits to $500 million.
Whether someone agrees with the tax breaks or not, the most amusing part of this is California is giving tax breaks to create jobs. It just did the same to keep Twitter there. It's weird since liberal birdies in my ear have always told me tax cuts don't create jobs and only serve to give free money to evil corporations.
the state legislature is completely out of control, but when they do inadvertently do something right, I want to reward the behavior :) like training rats in a cage
In other words, how about tax breaks across the board, to keep jobs here, instead of targeting certain industries that the legislature sees as glamorous and glitzy, so they can rub elbows with stars and movie moguls?
Exactly.
that would be fine by me.
It makes no sense no matter how you look at it.
The weird thing is that two things are happening. It could be that the production is done already and they are looking for real tax breaks on what has already been spent, however it could be that it is not a tax break FOR REAL but it is simply doling out money so the producers are not really spending their own money. Without more information on "productions that meet certain requirements" we cannot know what the case may be 100%, HOWEVER there is a clue because it says "and shoot in the state during the year." Not during LAST year but during (this) year. So it is not really a tax break if that is the case and that pisses me off. It is incentive to make movies it is not tax break on projects already made. Unless these funds are not doled out and the applications is to make sure that when they do their taxes NEXT year they get the breaks, but again there is no further information on that and even that in my personal opinion is still unnecessary.
Instead of doing this either tax break or "tax break" (where money is really just being doled out), they should just relax, minimize, change and tighten up the tax laws already in place. This which in all seriousness is EXTRA cash that they are trying to dole out, is not necessary especially during the circumstances. Producers SHOULD get their own private funding anyway, I don't even understand government intervention on the movie industry where it is billions upon billions of dollars every year in profit. Why bail that out? It makes no sense.
I don't even go to the movies that often and a lot of the movies that come out every year are not even seen country-wide. Why spent tax payers money on something that we have no control over? I don't know what they are creating? Is it something I am going to watch? enjoy? like? will I find myself objecting to it?
Okay and these "movies" are going to feed, clothe and heal the good people of California right, because that is what a mo-vie is? A "movie" is something that is ABSOLUTELY necessary to life correct? A movie is NECESSARY for the day to day life issues that are part of being human correct? Because they wouldn't spend unnecessary amount of money on something that is NOT essential... right? Or am I wrong?
:-/
I got no problems with businesses and employers, but considering that movies are not essential businesses like let's say farming or ranching or health services, I am thinking that the government could either put LESS (much much less) money into the producers hands (after all they are producers and should come up with their own cash if they really believe in a project) OR the government could just instead of spending money in the industry, LIFT taxes and restrictions that prevents certain productions from being shot in the USA/California (in California is very expensive to shoot movies/tv series, hence why a lot either go to other states or they go overseas/Canada).
If it became EASIER and PROFITABLE to film in the USA/California producers won't need to go for handouts in the first place.
the film industry is huge employer in california and creates jobs. very few businesses are essential to life on earth.
While you have a point, I don't think that it is a vital industry, where people will die/starve/be miserable unless it gets its subsidy money right now.
OTOH, what will happen with this particular subsidy money is that it will go towards making more lib propaganda,which means really, that this is just another electioneering scheme financed by tax dollars that California cannot afford at the moment.
I don't think there are very many industries that must be subsidized -- in fact, I can't think of any at the moment..
A great many businesses are essential for life. Great many. Any business that deals with dead people/animals, any business that deals with garbage disposal, schools, hospitals, services like gas, water, electricity... businesses revolving around food, businesses revolving around health (pharmacological biz for example). So many others. The movie industry in my humble opinion DOES not qualify as an essential business for life. I cannot live in filth I NEED someone to haul off the trash, if I am not able to dispose it in an appropriate place myself. I cannot live without water either for drinking or cleansing, and so on. People CAN stop going to the movies. As for them providing a lot of jobs FOR A CERTAIN SECTION OF people in certain AREAS of the CERTAIN states... yes that is not up for discussion and although I have no problems with the movie industry being a business it DOESN'T NEED my money to survive. It makes a lot of money for itself and other than "entertaining us", what has the movie industry done for us (generally) lately? A lot of these people that work in the movie industry more than anything may have other jobs or can get other jobs in other industries just fine.
wait a minute -- why are you against tax breaks for employers? the film industry employs hundreds of thousands of people in California. and those jobs cause a ripple effect that creates more jobs.
If these tax breaks are used to keep film production (and jobs) in California then I'm all for it. I wish the state would give these kinds of tax breaks to all kinds of businesses -- that would be a real stimulus plan, instead of trying to regulate and spend us into oblivion. The Feds should do the same.
Personally, if companies have 100% employment and manufacturing in the US, then I'd support no corporate tax for them.
I already saw Michael Mooron in line with a sack full of Big Macs.