Hollywood Producer Against Subsidies

Seems like we are seeing more reports and opinions that echo many of the arguments I make on this blog:

I and most of those with whom I work are part of the one percent who are being protested these days. While I find the protesters’ messages confusing and misguided, I can certainly sympathize with the overall concept that the system inappropriately favors the rich. We probably need higher tax rates, but we certainly don’t need to be subsidizing large corporations and rich individuals like myself just to create or maintain relatively few jobs in locations that would not be economically viable if not for those subsidies.

Here in the US, much of the occupy wall street protests have been about discontent with trickle-down economics: The idea that government should hose the rich with tax breaks and favorable policies and the results will “trickle down” to the rest of the population and even lead to higher government revenue.

This policy has dominated the US for the better part of 30 years and we now find ourselves with huge debts, large income disparities, and a collapsing economy.

The same idea is at work with film subsidies. If a regional government provides huge subsidies for incredibly rich US Studios, they will bring work to the region which will lead to more economic activity, higher incomes, and higher tax revenues. In the short run you may get a bump but in the long run we’ll probably end up seeing the same thing that is happening in Michgan, and New Mexico.

Soldier On.


8 Responses to Hollywood Producer Against Subsidies

  1. Loved the producers article. 100% identical position to mine. He supports the CA incentive as a needed defense. Until incentive schemes are dismantled, whether via trade action or otherwise, CA needs a defense.

    • VFX Soldier says:

      and as you know I disagree with subsidies even for California’s film industry.

      I will admit I was surprised given the heavy lobbying by the studios and supporting news reports and studies that the legislature only extended the subsidies for 1 year when it was supposed to be 5.

      • Tell me about it. All but 3 lawmakers voted yes for the five year. It was the Senate Majority Leader who was able to muck it up. The five year extension will be reintroduced in the next session. Passage is likely. The people who the bill has kept working cant afford the luxury of opposing the incentive based on how they feel idealogically about tax cuts. The incentive is a necessary evil. Being opposed to war doesnt help when the enemy is tearing down the gates.

      • VFX Soldier says:

        “Being opposed to war doesnt help when the enemy is tearing down the gates”

        Well with all due respect it’s kinda hard to accuse them of being enemies when its the US Studios based in California who coerce them into the process of offering subsidies. If a challenge was made in the WTO the studios would be the first to oppose it.

      • I won’t disagree with you, because you are right. As I have said before, I am not a fan of the lobbying efforts by the MPAA. Certainly, they are perpetuating the problem. But my focus is not on helping them….it’s on helping the 6400+ other businesses in California that depend on the studios making the bulk of their projects in California. Again, the incentive is a necessary evil. The minute we don’t need it anymore, I will be the first one advocating its end. Like the producer in the article, I would rather have the money put to other uses. VFX Soldier, I am an avid reader of this site and have tremendous respect for the work you do. Truly, I am a fan. We may not agree on the California incentive, but on everything else….I think we do agree. Keep up the good work. Soldier on.

      • VFX Soldier says:

        Thanks for reading!

  2. Dave Rand says:

    Maybe it’s time for all that infrastructure created off the USA’s dime to attract some Canadian powerhouse studios and have them produce their own blockbuster films….benefitting everyone. I’d support that, I think everyone would, Time to remove the road blocks.

  3. meh says:

    Earlier this year, the government [tax payers] made an undisclosed financial commitment to the film’s production company, Triune Productions, to secure the production for NSW.

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