Posted on 08/04/2015 8:46:13 AM PDT by MichCapCon
The state will no longer offer new film productions taxpayer money to shoot movies in Michigan. This is an incredible development considering that film incentives passed with only one dissenting vote just seven years ago. Now that policymakers have acknowledged some limits on profligacy in the name of economic development, there are other programs that ought to be reviewed as well.
A few contenders immediately come to mind.
The 21st Century Jobs Fund programs have constantly changed strategies since its creation in 2005. The programs have made early-stage company grants, battery plant subsidies, matching fund grants, incubator assistance, mezzanine financing and others. The state’s current programs include developing an “entrepreneurship eco-system.”
Results have never met expectations — former Governor Jennifer Granholm mentioned that we’d “be blown away” — and these programs continue to drain state cash.
While those Pure Michigan commercials might instill some sense of state pride among our residents, they represent the state purchasing an entire advertisement campaign for a single industry. The beneficiaries get free marketing, but taxpayers stuck with the bills get no returns.
The Michigan Community Revitalization Program offers grants to real estate development. These projects already involve private money and legislators should be skeptical that giving tax money to develop residential and retail space is an effective way to grow the economy.
The state is no longer offering Michigan Economic Growth Authority credits, but the deals that were made will continue to cost state taxpayers billions. Legislators ought to investigate ways to roll back those liabilities, like revisiting whether these credits should remain refundable. The refundability of these credits when the credits are worth more than the company’s tax liability makes these credits a subsidy from other taxpayers.
At its core, the economy is about people working together to meet their wants and needs. The state government sometimes intervenes by taking money from some and giving it to others under the guise that it knows best how to generate greater economic effects. Policymakers acknowledged that this was ineffective for the film industry and should apply that same thought to other areas where the state decides whose money should go where.
That’s fine, you guys have been showing the silliness of film subsidies for years, about time they listened.
But as for “The beneficiaries get free marketing, but taxpayers stuck with the bills get no returns” - that’s BS. I personally know several people who have mentioned without being prompted that they’ve planned Michigan trips after hearing those “Pure Michigan” commercials on Chicago radio stations. Completely different for the state to be advertising its public and private amenities for tourists than to be giving away free money for making a movie there, which is a private venture.
MA has had them for years. Have you noticed how many get shot in Boston in the past few years.
They work. But who wants o shoot a movie in Detroit? Mad Max maybe....
Can’t mention the madness of film subsidies without recalling director Ewe Boll, who pushed the German movie-making tax credits to the extreme, pulling a “The Producers” (without the successful results) and making epic star-studded big-budget schlock, one title after another (ruining numerous video-game franchises in the process). Asked to wit “what the he11 are you doing” in an interview, Ewe made a laudable yet faltering effort to justify his efforts as earnest attempts at silver-screen artwork. _Bloodrayne_, for example, took an interesting game and turned it into a leather-and-whips vampire-ridden faux-epic set in Nazi Germany with, as one might expect from that summary, no redeeming value.
Subsidies distort markets. Implemented without care, unintended consequences ensue.
I remember how excited the local TV news stations were about how “Hollywood” was coming to Michigan...Suckers!
Now they’ll have to make all their bad movies in Pittsburgh like everyone else.
Louisiana seems to have made their film incentive program work.
California film companies don’t have as far to travel if they’re only going to Louisiana. Michigan is another what, 1000 miles?
The incentive program was cut from a maximum of 250 million a year to a maximum of 180 million a year. Watching the local news(Shreveport) you would have thought the world was coming to an end. Film and television folks were told to apply for incentives anyway.
I did not know that Louisiana had cut their subsidy. Things are tough all over!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.