Hollywood says: Tax cuts spur growth

Oct. 27, 2012

By John Seiler

Hollywood usually backs left-wing causes, such as tax increases and politicians who increase taxes. For example, Steven Spielberg and Barbra Streisand are big fans of President Obama. They agree with him that tax increases will spur growth, rather than retard it.

But Hollywood does insist that tax cuts boost growth for one group: themselves.

Here’s Amy Lemisch, executive director California Film Commission, writing a letter to the Wall Street Journal:

“Gov. Jerry Brown’s recent decision to extend our film and TV tax-credit program for an additional two years was supported by a uniquely broad bipartisan coalition of legislators, as well as business and labor groups from across the state for one simple reason: It works.

“Unlike the Massachusetts program referenced in your editorial, California’s tax credit is highly targeted and applies only to “below-the-line” spending, such as wages paid to carpenters, electricians and other crew members. Not a single dime of our tax credit goes toward salaries of highly compensated ‘above-the-line’ talent—in other words, those referenced in your editorial as ‘Hollywood’s mendicants.’

“Furthermore, independent studies (not just the ones you selected to reference) show that our program more than pays for itself in state and local tax revenue, not to mention direct and indirect jobs. Producers can’t claim a dime of our tax credit until after they pay their workers and complete all their in-state spending.”

A reader named Gary Stutz from Ben Lomond replied in another letter:

“Amy Lemisch, executive director of the California Film Commission, writes in her letter (Oct. 18) regarding tax credits for Hollywood that ‘our program more than pays for itself in state and local tax revenue, not to mention direct and indirect jobs.’ So, lower tax rates result in higher tax revenue and more jobs. Who knew?”

Of course, it’s total hypocrisy. Hollywood backs Brown’s Proposition 30 tax increase. In return, he backs continuing the tax cuts for Hollywood.

In the Hollywood movie “The Distinguished Gentleman,” Eddie Murphy learns how the same thing is done in the U.S. Congress: