Sunday, March 06, 2011

Paying Tribute to Sean Penn, Michael Moore, Oliver Stone and Alec Baldwin

Governor Snyder suggested in his budget plan that film subsidies should be eliminated. Nevertheless, he left $25 million on the table and gave the movie industry a reason to complain about uncertainty.

Here's why he should simply have been a "semi-tough guy of near average intelligence," and cut it completely:

Movie math
Why can't states grasp the absurdity of giving welfare to film and TV producers?
By Michael Kinsley
March 1, 2011

Film subsidy fans ignore critical facts
Movie industry tax breaks don't pay for themselves, they're a drain on the state
March 04. 2011 1:00AM
Frank Beckmann

Firefighters or Mitch Albom's Movie Subsidy?
By Kathy Hoekstra
Feb. 28, 2011

State Film Subsidies: Not Much Bang For Too Many Bucks
By Robert Tannenwald
December 9, 2010

Ernst & Young, however, says good things are happening in New York:
Study Says Film Subsidies Create Jobs, in New York
By MICHAEL CIEPLY
January 27, 2009

And Ernst & Young claims that for every $1 spent on film subsidies in Michigan the state gains $6: 
New study says film incentives bring millions of dollars to Michigan
February 21, 2011
By Jackie Headapohl

If Ernst is correct, it is hard to see why Michigan shouldn't spend $250 million on film subsidies.

Unfortunately, the Senate Fiscal Agency has another view. They tell us that we realize ten cents in tax revenue for every Michigan taxpayer dollar spent:
FILM INCENTIVES IN MICHIGAN

A Connecticut study reaches similar conclusions:
Fiddling While Rome Burns: Connecticut’s Multi-Million Dollar, Money-Losing Subsidy to the Entertainment Industry

So, there is good reason to eliminate, not reduce, the film subsidies. We should stop competing with other states to shove money into the pockets of the film industry. They've survived quite well on their own ever since the invention of talkies.


However, with Ernst & Young studies showing a 6 to 1 benefit (BS though that logically is) the Michael Moore Corporate Welfare Fund can't fail to get the Governor's approval for more than the $25 million he's toying with.

After all, he pushed to raise the “Pure Michigan” tourism permanent bail-in fund from $15.4 million to $25.4 million. In that case a study by Longwoods International (paid for by Travel Michigan, the tourism promotion agency within the Michigan Economic Development Corporation) purported to show a mere $2.23 was gained for every tax dollar spent. Pure Spending — GOP Finds More for Tourism Subsidies
By Ken Braun
March 4, 2011

1 comment:

Anonymous said...

Ernst and Young is a reputable accounting firm. They have been primary auditors for large and powerful corporations like Lehman Brothers and Akai Holdings. Who are you to question their unbiased study funded by the Motion Picture Association of America?

Just what gives you taxpayers the right to question politicians and Free Press writers who know more than you do about everything?