Want to play a fun trick on a conservative friend? Do what Hollywood is doing.
Recent efforts by California politicians and the US studios to pass new larger subsidies have not only irked irked me, but a bunch of low tax loving conservatives.
Why? Well it should be no surprise as Hollywood is calling the subsidies a “tax break” or “tax incentive”. So conservatives get angry because Hollywood is okay for tax cuts for themselves but not other businesses. The problem is they’ve fallen for one of Hollywood’s oldest tricks in the book. Hollywood essentially calls guvmint subsidies used to fund their productions a “tax break” which is tricking everyone into supporting a program which many conservatives would call socialism if they actually did some research.
California could lower business taxes to effectively to ZERO and nothing would change as far as the loss of work to subsidized locations because they are getting effectively free money for their films from guvmints.
Pretend you’re a Hollywood producer. What sounds more attractive to you:
Guvmint A: Zero business taxes!
Guvmint B: We’ll pay you 60% of your labor costs!
Guvmint B because US producers don’t pay that much in taxes and even if they did, it wouldn’t come close to the millions they would get from the Canadian guvmint there. Hollywood has been able to get these programs passed all over the world and so many states. How? By calling it a “tax break”!
Conservatives have been some of the most gullible ones falling for Hollywood’s trick. Louisiana gave Oprah’s The Butler $7.9 million for $15.5 million spent there. The Republican state of Louisiana has a very large subsidy program that leads to one of the largest recorded losses: For every $1 they spend they lose 85 cents! Watch the video in that link to see how dumbfounded the lawmakers are trying to figure out why they are losing so much money.
The list goes one with other conservative states like Alabama, Georgia, and Florida. Florida loses 60 cents for every $1 they spend on film subsidies. Why are they so easily confused because Hollywood groups like the MPAA put out competing bullshit reports that claim Florida gains $5 for every $1 they spend. Think about that for a second. That’s a better investment than Google and Apple COMBINED. How did the MPAA arrive at such an incredible number? In the study they admit the numbers were derived from an online poll that had 61 respondents. Is the MPAA getting interns to do their studies?!
So great job Hollywood! Keep tricking those cons into falling for your socialistic tricks. Together we’ll rule the world and take those poor conservatives’ guvmint money and do what we really were setting out to do: RE-ELECT BILL CLINTON FOR 5 MORE TERMS!!!!!!
But seriously if you really want to understand why these subsidies aren’t tax breaks and why they don’t make economic sense read this recent article: And the Winner of the ‘Worst Tax Policy’ Oscar Is …