Wednesday, February 19, 2020

WHY DID HOLLYWOOD GET A TAX BREAK? L.A. COLUMNIST ASKS

January 4, 2013 by · Leave a Comment 

“The extension of a federal tax break for movies and TV shows shooting in the U.S. typifies the giveaway mentality that still pervades Congress,” writes Mark Lacter, the business editor of LAObserved.com. Lacter notes that the tax incentives, which went on the books in 2004, were designed to discourage “runaway production” but that there is “scant evidence” that they have succeeded in doing so or whether the revenue generated by filmmakers taking advantage of them offsets the tax revenue lost. Besides, Lacter notes, many producers are double-dipping, taking advantage not only of the federal tax incentives but also those of several states who have instituted them to attract filmmakers. “And all this for an industry that hardly needs any government relief,” Lacter observed, pointing out that when last year’s box office revenue is added up, it is expected to come in at a record $10.8 billion.