CA Dems back tax cut
Will wonders never cease? Three years ago, Democrats in the Legislature were upset when Republicans denied them the two-thirds votes needed in the Assembly and Senate to put a tax increase on the ballot. Led by Gov. Jerry Brown, they then gathered signatures to put on the Nov. 2012 ballot Proposition 30, which increased taxes $7 billion. Voters passed it.
The Democrats now have had a change of heart. Reported the Times:
“SACRAMENTO — Proposed legislation aimed at providing more tax credits to attract so-called runaway movie and television productions back to the industry’s birthplace in California won initial approval from a legislative committee Tuesday.
“The proposal would renew and increase a state tax credit — amounting to as much as $400 million a year — to better compete with generous tax subsidies available in more than 40 states, including New York, Louisiana, New York and Michigan, as well as studios in Canada and Britain.
“The tax credit would allow most film and TV production companies to reduce their tax liability by 20% of the cost of many production expenditures.”
So Democrats actually admit that high taxes drive away business. And although Prop. 30 mainly was taxes on rich folks, $1 billion comes from a sales tax increase. So the poor and the middle-class effectively will be paying for that $400 million tax break for Hollywood investors, movie moguls and stars.
Assemblyman Richard Bloom, D-Santa Monica, gave this explanation:
“This is our industry to keep or lose. We need to send a message to New York, England and other states competing for our jobs and say, ‘It stops here.'”
But what about the rest of us? What about workers in manufacturing, or construction, or retail or lumber? Can’t we cut taxes for them and say to “states competing for our jobs,” such as Texas, “It stops here”?
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