3/15/2006

Do moviemakers deserve a tax break?

Wisconsin's State Senator, Ted Kanavas, is proposing a bill that would allow tax breaks to filmmakers who chose The Badger State as the ideal location for their film. The proposed bill was discussed in an article on The Idea Shop wherein Sen. Kanavas states that the bill is not offering subsidies, rather lower taxes, and the state is not offering grants or loans, just forbearance. I think the film industry is on the tail end of those in need of tax breaks. Although a movie filmed in your area would bring in revenues, I think a different course of action needs to be taken to produce state revenue.

5 comments:

Frank said...

Sounds like the Senitor is vary hard up for tax revenue, and maybe some advertising for the state. I do agree that giving tax breaks to hollywood is probably not the best income for the time he spent on it.

Boris said...

Personally, I think it's a fantastic idea! Having lived in Wisconsin, my opinion is probably biased, but the state could use all the help it can get. Right now Miller beer, Harley Davidson, and cheese are the only things keeping the state afloat. Why not film the next “Spiderman” movie in downtown Milwaukee? It could create some great publicity, and give the state economy a kick in the backside. Who wouldn’t want to see Spiderman swing on all five skyscrapers in the city and then watch his alias, Peter Parker, take some time off to see a Brewers game?

Blake said...

When you offer a corporation, or a movie production company a tax break, you are in fact helping to subsidize their operations, and it seems ridiculous to me that a senator wants to give movie producers preferential treatment regarding their taxes. Movie makers have the potential to make millions of dollars, so they should pick a movie location accordingly, regardless of the tax breaks associated with it.

rico said...

I think they should do it. If cities are giving tax breaks to Wal-Mart, why not a movie producer?

Dr. Tufte said...

-1 on Frank's comment for spelling errors.

I am not surprised at this sort of action. It is all too common.

The reason that this happens is once again the prisoner's dilemma. Localities give tax breaks to mobile firms because there is always a chance that other localities might not do the same thing. Frankly, I think this is an area where we probably need a constitutional amendment to ban the practice.

Blake: do you realize that you against subsidies in this post, but in favor of "anti-subsidies" in the last post?