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Hollywood’s hidden goodie stuffed into Crap Sandwich 2.0

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By Michelle Malkin  •  October 21, 2008 04:27 PM

We are still waiting for the comprehensive list of congressional sponsors for each earmark stuffed into the Paulson/Obama/McCain/Bush/Pelosi/Reid mega-banking bailout.

Did you know that Hollywood got a special tax break as part of the sweetened CS2.0?

Josiah Ryan reports:

A tax break for movie and television producers who agree to film their shows in the United States – a part of the $700 billion economic stabilization package signed into law by President Bush on Oct. 3 – will cost taxpayers $470 million over the next 10 years, according to an Oct. 1 report published by the Joint Committee on Taxation.

The tax cut, designed to entice Hollywood and TV producers to shoot their films domestically, will cost taxpayers $358 million in 2009 and $470 million by 2018, the report states.

Described in the financial bailout bill as an “expansion and extension” of a nearly identical provision in a 2004 law, the revision now allows producers to write off $15 million in production costs on any movie they produce and slashes a restriction in the 2004 law that excluded films with budgets of over $15 million.

The current legislation would also allow filmmakers filming in the United States to qualify for a tax deduction, capping the top tax rate at 32 percent instead of 35 percent.

“A taxpayer may elect to treat the cost of any qualified film or television production as an expense which is not chargeable to a capital account. Any cost so treated shall be allowed as a deduction,” states the original tax break, passed in a corporate tax bill in 2004 and extended in the $700 billion economic stabilization package.

Dan Glickman, chairman and CEO of the Motion Picture Association of America (MPAA), told CNSNews.com in a statement on Monday that he thinks these tax cuts will help the U.S. economy.

Who sponsored this? Where’s the transparency? Nancy? Maverick? Anyone?

So: Tinseltown gets tax breaks, but the rest of us will get Barney Frank-championed tax hikes:

I think at this point, there needs to be an immediate increase in spending, and I think this is a time when deficit fear has to take a second, uh, a second seat. I do think this is the time for a very important kind of dose of [unintelligible]. Yes, I think later on, there should be tax increases. Speaking personally, I think there are a lot of rich people out there who we can tax at a point down the road to recover some of this money.

Dude, where’s our bailout?

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