If even Alec Balwdwin can see the light, maybe there is a glimmer of hope after all:
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.
But isn't howling about taxes only when they start to hurt you personally one of those selfish Republican/conservative ideas Hollywood loves to hate? (Psst, Alec, a little secret: High taxes hurt all businesses. which would
Comments
This is a good example of how a government can artificially stimulate the economy. A 35% tax credit on filming, why? Why should filming receive such a credit over other businesses? We see it all the time where politicians does the public a favor by reducing some companies taxes, providing millions of tax abatements if they only setup shop here. The problem is in the end local taxes paid by those living here pay the price of all these tax handouts. All companies should be treated the same.
When a down turn comes, these companies who are dependent on the tax handouts more often than not are weak to begin with. They end up laying off workers adding to the state's unemployment cost
The best thing to do with taxpayers money is to spend it wisely and not use it to provide one single penny of tax incentive to any company. We can only hope that with the tax handout in NY gone, we may see and hear less of Alex B.