From Robert Bidinotto:
Here is another example of how tax policy is leading to “Atlas shrugging.” In this case, the “Atlas” is Hollywood — meaning, big Hollywood production companies — and they are “shrugging” by what is called “runaway production” — that is, they are “running away” from California to produce films elsewhere because of the state’s outrageously high taxes.
“Over the weekend, â??Iron Manâ?? director Jon Favreau organized a meeting with Marvel Studios producer Lou D’Esposito, California Film Commission member/producer Stanley Brooks, and actor Tom Arnold with California Governor Arnold Schwarzenegger to talk about the problem of runaway production. . . .Saturday’s meeting was pushed by Favreau who wants to keep â??Iron Man 2’sâ?? $140 million production in Los Angeles. . . .Marvel, of course, only cares about the bottom line and wants to make the â??Iron Manâ?? sequel anywhere the studio is given the best financial deal. “Marvel got an 8-figure [tax] rebate check on ‘The Incredible Hulk’ which was shot in Canada,” Favreau tells me. “It’s hard to compete with that. But a little bit of a tax incentive in California could go a long way.”
So, what exactly is the problem with producing films in Hollywood?
“Unlike about 40 other states, California does not offer a tax credit program to keep Hollywood at home. So the number of film production days shot on location in Los Angeles has plummeted nearly 40% since 1997, according to FilmL.A. Inc, a non-profit group that handles film permits. What’s at stake? Well, a major production can pump tens of thousands of dollars a day into local economy what with hotel room stays, catering, services and permits. One figure cited is that 3 weeks of filming of â??Memoirs Of A Geishaâ?? generated more than $4 million for Sacramento and El Dorado counties.”
” . . .Schwarzenegger explained that the problem isn’t him: it’s the state legislature looking at a $15+ billion budget shortfall. Democrats want to use that tax money for more humanitarian concerns, and see providing services for the poor as more important than providing tax incentives to rich moguls. . . .”
Yes, we have to punish all those “rich moguls” in Hollywood in order to provide more help “for the poor.” But, um, erâ?¦where the hell do the politicians expect to GET tax money if those “rich moguls” move their productions elsewhere, taking with them all the jobs and secondary businesses that a big Hollywood production creates? Punitive taxes are thus costing California big-time:
“[Schwarzenegger] most recently railed against runaway production at a news conference on May 9th — but that was scheduled only after he received heat during another press conference. . .from reporters annoying him with questions about “Ugly Betty” leaving Los Angeles for New York to take advantage of an Albany-passed package of fat [tax] rebates. . . Since then, the TV shows “Life On Mars,” “Fringe” and “Kings” have left Los Angeles or Toronto (where the Canadian dollar is suddenly expensive) to move to NYC as well.”
Put simply, Atlas is indeed “shrugging” â?? and this time, at least, Hollywood leftists are paying the price for their own socialistic lunacy.
