Hollywood’s hidden goodie stuffed into Crap Sandwich 2.0
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?
See what others have said
Note from Michelle: This section is for comments from michellemalkin.com's community of registered readers. Please don't assume that I agree with or endorse any particular comment just because I let it stand. A reminder: Anyone who fails to comply with my terms of use may lose his or her posting privilege.
Trackbacks
- Kick the Anthill » Industry News of the Day
- ChooseTheHero.com » Blog Archive » Getting Nasty
- Michelle Malkin » The newspaper bailout countdown clock
Comments
You must be logged in to post a comment.
Categories: Subprime crisis
Doug Ross @ Journal
» Democrats shocked -- SHOCKED -- that Republicans won't eat the juicy, tender crap sandwich they crafted all on their own
Green Room
» Miss Me Yet? Bush Billboard Mystery SolvedMudville Gazette
» New Standards in JournalismMudville Gazette
» In this case I'm pro-abortionLegal Insurrection
» Huh? Staying On Course is Not Staying the Course?Redstate
» NY Times IPCC Alibi Falls Flat
DAISNAID. Everybody else should pay except for Hollyweird.
/s/
jose
Oh goodie, more crapy movies…
You gotta be kiddin’ me!! So they can continue to spew out crappy anti-American garbage. And we get to pay for it?!
We have gone completely mad…
I want my bailout, but I have not seen my name on any of the lists big brother is giving out. I will keep looking, I’m sure it is in the mail.
L
Bribe. Payoff. Payola.
Bribe. Payoff. Payola.
No help for middle-America. Just tax breaks to (as the leftus like to say) people who don’t need it.
Just remember, as Leona Helmsley once said, “Only the little people pay taxes.” No bailout for you, sorry.
Wait…forget about our bailout for a moment and ask yourself this question:
If the liberals who sponsored the bailout bill recognize that giving tax breaks to Hollywood will encourage them to film their movies and television shows here (read: run business here)…don’t you think for a second that same logic should be applied to all businesses?
And don’t we have a candidate for president who talks about “spreading the wealth” via taxing business profits…who apparently has no problem giving a tax break to favored industries?
Oy, vey. So why are tax breaks good for production companies that make those eeevilll profits…but not for an oil company?
I’m surprised there is no provision that this only applies to “R” or “X” rated movies.
Bread and circuses, without the bread.
Barney Frank is a disgusting despicable person.
So they cap Hollywood’s tax at 32% but mine should go to 39% in ObamaWorld?
And regarding the cost…
I read it this way… Pelosi and Co. saves Hollywood $470 million. What a crafty way to spread a piece of that $700 billion around in to their Hollywood supporters.
This is a small sample of what “fairness” would be like in an ObamaNation.
All you people claiming to want to sit on your hands on Election Day need to get with the program and vote to keep Obama out of the White House and Dems in general out of congress.
No more tax breaks for Big Entertainment! Or given what is produced out of Hollywood these days maybe ‘Big Propaganda’ is more fitting.
Makes total sense, however, I believe this notion of giving them money to “encourage” them to make pictures here in America is just an veiled excuse to give the industry money for all they do for the democrats.
And to clarify.. it’s not the I object to incentives for business to be conducted in the US versus conducting it elsewhere… it’s the selective nature of that incentive.
Dems know dam well that cutting taxes helps the economy. But they won’t do it across the board because they think it would cost them votes among there lower income and union constituents.
What jackasses Dems truly are. It’s truly remarkable.
Indeed, Barney. Indeed.
typo’s galore… argh…. sry
NJ – I you beat me to it. We are on the same page, but you said it better than I.
Sounds like a great idea – keep productions made in the USA by offering excellent tax breaks…this is pretty much the main art form in America and generates massive amounts of money for the US Economy.
President Obama has promised to give tax breaks to other businesses who don’t move overseas… again, another win.
Isn’t it ironic that liberals will give Hollywood tax breaks and call it smart… yet giving the same incentives to energy companies is evil?
Which is it that we need more of? Domestic energy or Domestic movies?
And think about it… Big Entertainment is responsible for taking money directly from American families. The cost of bringing a family of 4 to the movies these days is ridiculous. But Big Entertainment has no problems picking Mom’s and Dad’s pockets. Shameless, isn’t it.
If that isn’t a double-standard, I don’t know what is.
I thought Obama said no tax breaks for the wealthy!? He beats this dead horse every time he talks about McCain, “oooh, OOOHH, McCain will give tax breaks to wealthy, because he hates all you little people!”
Don’t be so presumptuous.
What this tax cut does is provide an incentive to employ more people in the US.
What SENATOR Obama will do is raise taxes on corporations, driving them overseas. He WILL NOT cut taxes on corporations, despite what he claims in the debates.
tyrfing said:
…maybe ‘Big Propaganda’ is more fitting.
Well, we could nationalize em… after all entertainment is a basic human right. It only make sense that they should be civil servants.
we can all go down to the peoples theater, & watch W… free popcorn with butter like no trans-fat syrup! Yum!
Thanks Cheryl… but you probably would have spelled it correctly.
lol
US Senator Christopher Dodd (D-Countrywide) has been going crazy today after the New York Times finally got around to criticizing Dodd’s sweetheart mortgages from Countrywide. Dodd pretended that he did not who Angelo Mozilo is. I wonder if Dodd will be asking for full disclosure. Somehow I doubt it.
But not just crappy ant-American movies, crappy anti-American movies subsidized by you and me, the American taxpayer. Aren’t we nice people?
Obama’s gobment will own the entertainment industry soon. Oprah has volunteered her production company to help him with his “network special.” Today, a “special,” tomorrow, full blown productions of Obama and his “youth” in brown shirts coming to a theater near you!
A Hollywood handout to make more crappy movies from a crap sandwich bailout?
Craptastic.
Sounds slightly more interesting than what they are producing these days.
It’s unfortunate that this tax break for Hollywood was stuffed into such a crappy bill, but otherwise, I think this tax cut for Hollywood will be a net positive for the US economy. The financial benefits Hollywood brings to American workers when they produce films in the US far surpass the tax breaks they receive by going there.
I’d like to see more of this kind of thing in other areas.
I want to correct something here: The earmarks and tax breaks were not added to the $700B banking socialism package. King Paulson’s “let’s go shopping” package was tacked on to a pork laden bill that had already passed the house and the senate. The senate is constitutionally prohibited from originating revenue bills so they took a revenue that came from the house and pasted this monstrosity on top of it.
Why does this distinction matter? Because the pork was not added to sweeten the deal, it had already passed and was destined for the President’s desk anyway. (Though clearly not for his veto pen since he can’t find it.) In other words, congress was already set to spend all this pork while they were supposedly concerned about a downturn in the economy.
OH GOODY Now the tax code has 67001 pages to it.
Do you want to stick it to Hollywood? Film in Canada.
Is there any group less deserving than Hollyweird?
OK, Congress.
Aut they vote on their own pay raises.
Any bets as to congress bringing up a vote for a congressional pay raise before Thanksgiving?
I bet they do.
And Spielberg (sp) is working with Reliance India. Here’s a question I have, when the actors go on strike, then what?
A weekend take for some of these (crappy) movies is in the millions & they need a tax break?!?!?!?!? Huh?
Hey Barney!
Remember when you added on the luxury tax. The very rich bought yachts in Europe and Asia and our boating industry went bust.
Not good, but our taxpayer dollars were already going to fund “art” that was anti-American/pornographic/anti-religious (more specifically, Christian). Ever hear of the NEA?
If we won’t help fund this crud, we are guilty of censoring it, dontcha know.
Why should you not have to pay for it just because you personally wouldn’t want to watch/read/listen to/ go to an art gallery and “ooh and aah” over it?
Sarc/
It is fast becoming time to arrange a meeting around the tree of Liberty…… Insurrection redux……. blood sucking cretins of D.C. stand by for elimination…. I cannot see straight after reading this…. I am P**sed!
Barney Frank said:
Poor Barney has a difficult time getting his mouth around the vowels. The unintelligible part was THE CLAP. He was saying that it is time for a dose of the clap. I think maybe he wants to tax rich people who have the clap.
Joe Biden issued a press release saying “it is patriotic to have the clap”.
Good God. Orwell was right, he was just off by 25 years.
First they came for the rich man and I said nothing because I was not rich….Then they came for the middle class man and I said nothing because I was poor………Then guess what happened?
I haven’t read all the comments so if its been brought up forgive me…..
With this big “break” is part of the deal they need to make quality movies instead of the crap they are making now?
oh, didn’t think so, more wasted money, imho.
Wow who thought they cared about taxes who knew.On second thought the leftist propaganda films will be shot in the good ol U.S.A.
On October 21st, 2008 at 4:49 pm, NJ-Aviator said:
Well, the film industry (from personal experience I am speaking mind you) in the U.S. has been suffering from overseas production for a very long time.
Canada especially has been kicking our butts. Take a look at the SciFi channel – practically everything on it is shot in Canada.
Hell, some countries will subsidize half of your production costs if you can stand to go there – (several African countries, for instance).
This is a lot like the competition you see between U.S. States vying for a manufacturing plant. They will fall all over themselves to give a break in order to attract the big business.
I agree I’d rather see everyone in the country get a tax break, but I don’t begrudge one industry or another getting the break too.
Remember that there are conservative filmmakers out there too. But they are independents, which means these breaks will help them raise money to do their work.
I’m sure some of it will go to Bill Moyers’ production company. After all, we as taxpayers are subjected to funding that crap as well.
Filmladd.. right.. the examples you use are to the point. However, my point is simply that this industry was chosen to be granted special conditions, or extensions of those conditions. My issue is why the film industry was selected. They are in no way a dominant economic force. Surely if congress wanted to stimulate a business segment via this bailout, a better choice could have been made.
Why not the textiles industry? China is kicking our ass and laughing all the way to the bank. Or the food industry? Ever check where that candy you buy is made? Or the sneaker industry? When was the last time you bought a pair of major brand running shoes or sneaker that were actually made in the USA? The lat one was New Balance. They’re long gone.
But rather than select an industry that could make a bigger impact, they chose their buds in Hollyweird.
FilmLad, the delicious irony is that the same Hollywood that is enraptured with the myth that we in Canada are some sort of socialist paradise will not allow their precious industry to be ruined by us. Granted, our loonie is not as green as the greenback but that’s the whole point, isn’t it?
Anything that screw over the Sarandons, Baldwins, Clooneys and Pitts is alright by me.
This would be funny, if it were not so sad. And true. We are so screwed.
Oh, the ironing!…
Hollywood Casts Wall Street as Villain to Tap Anger at Crisis
I can’t catch my breath from the insane levels of waste upon waste upon waste we the people are forced to put up with from this special interest congress and this spineless president. I would just love to be in the position of vetoing every last piece of trash sent across my desk from congress. Oh for the days of Reagan and “D.O.A.”
My best Charlie Brown “UUUUUGGGGGHHHHH”!!!!!
On October 21st, 2008 at 7:32 pm, NJ-Aviator said:
Well…
1) I don’t think tax breaks should ever be called or categorized as subsidies by conservatives, even for businesses we don’t like. Tax breaks are tax breaks. Otherwise we get stuck in the language of the left, which sees any tax cut as a subsidy. Remember how they tried to categorize capital gains tax cuts as “subsidies?”
2) I don’t think the government should be concerned about stimulating any segment of the economy… it becomes far too easy for “stimulations” to be manipulated for political purposes.
3) That said, I see any tax cuts as a victory for freedom. Again, consider the conservative filmmaker attempting to raise venture capital for his or her next film. Easier to do with tax cuts on the table.
A big socialist studio like Warner’s or Sony may get millions extra from the same cut, but that sort of thing means little to their bottom line. They’ll blow it on a shindig with limousines.
But it can mean a lot to the independent filmmaker.
Yay, more taxpayer subsidies to an industry hell bent on making the crappiest movies filled with the worst violence, sex, and imagery that corrupts the youngest of minds.
Did anybody hear how in Canada, cell phone users are getting creepy phone calls that are advertising the new horror flick Saw VI (or whatever number it is)? These calls were scaring the bejesuz out these folks.
The last thing taxpayer money should be going to is hollywood crap which will then be exported to countries (such as in the Middle East) that will give them an excuse to hate us some more.
Again, the logic has again escaped Congress.
Earth to Barnie Frank: the more you tax Corporate America the more the average American will hurt through lost jobs and increased consumer prices. Get a clue, dude.
Hey people, how about a little sympathy here? Breast Implants, divorce lawyers and cocaine are expensive; without these tax breaks they might not be able to afford the ski houses in both Vail and Telluride and the private jets to get there.
They are artist after all, sensitive and all that.
Someone was worried about Bollywood taking over too. One of my Indian friends explained the Bollywood industry. It beats the bejezus out us.
And I hate to break it to everyone also, but technology-wise we are only a 2nd world country. Go shopping in Hong Kong, Seoul, Tokyo or other places. The selection of electronics is mind-boggling. Our corporations severly and strictly limit the goods that we have available to purchase here in the US.
Totally awesome! Hollywood gets Americans to fund their anti-American propaganda. Do we get credit as executive producer or something?