Posted on 10/07/2004 4:45:17 PM PDT by NormsRevenge
WASHINGTON - A corporate tax bill nearing passage leaves out Hollywood's top priority — and Democrats are fuming that the GOP is punishing movie studios for hiring a Democrat as their top lobbyist.
The bill would repeal a tax break for American companies that has been ruled illegal by the World Trade Organization (news - web sites) and replace it with more than $140 billion in tax breaks for numerous businesses.
Under a Senate version of the bill, movie studios were in line for $1 billion or more in replacement tax credits. But congressional Republicans voted the credits out of the bill in a House-Senate conference committee on Wednesday night.
Some Democrats said the movie industry is getting a raw deal. They contend Republicans are unhappy with liberal Hollywood in general and at the decision by the Motion Picture Association of America to hire former Democratic Rep. Dan Glickman as its chief lobbyist in July.
Glickman said he did not think payback was at work. "I personally don't believe it," he said.
But Democratic Rep. Howard Berman (news, bio, voting record), who represents part of Los Angeles, said: "I've read some comments that made me think that was in some people's minds, and I heard enough before this, at the time Dan was hired, that makes me suspicious."
Spokesmen for Majority Leader Tom DeLay, R-Texas., and House Ways and Means Committee Chairman Bill Thomas, R-Calif., denied the claims.
"The facts don't bear that out," said Thomas' spokeswoman, Christin Tinsworth.
Several Republicans noted that the House version of the bill dropped the tax break for Hollywood as far back as March.
The bill does include two benefits that Hollywood wants: a tax break for productions costing $15 million or less that are filmed mostly in the United States, and an accounting change allowing movie companies to save money by changing how they calculate depreciation.
Rep. Jim McCrery (news, bio, voting record), R-La., a conference committee member, said not all companies are getting tax credits that will fully replace the export tax breaks that being repealed.
The movie industry stood to get some $5 billion in subsidies under the export tax breaks; the replaces would add up to about $642 million.
"The movie industry, unfortunately, is one of those that will receive less in many instances," McCrery said. "Now is that fair or unfair? I don't think that's a proper characterization."
McCrery said he did not think it would have made a difference if a Republican were leading the industry's lobbying effort.
"Should any lobbying organization take into account who's in the majority? I think that would be wise," McCrery said. "But I don't mean to imply that they shouldn't have hired Dan Glickman. What they might want to do now is bolster their staff under Dan with Republicans. I just think that's common sense."
In 1999, when DeLay was majority whip, he was warned by the House Ethics Committee not to let party politics and campaign contributions dictate official actions after he and others expressed anger at the decision of the Electronic Industries Alliance to hire former Rep. Dave McCurdy, D-Okla., as its president.
The previous fall, some Republicans had been quoted linking a delay in an intellectual property bill the alliance supported to the decision to hire McCurdy.
It must have been a simple oversight , I'm sure. ;-)
But I've heard many Hollywood stars say they'd gladly pay their fair share in taxes, and that the rich should pay more taxes.
This is so confusing... Are they for higher taxes or aren't they?
They've all said they didn't need tax breaks. I don't see what all the fuss is about.
They were for the tax breaks before they weren't?
Got that right.
Taxing Hollywood is one tax I wouldn't have any problem with.
Hollywood leftists set up an illegal tax break in the democrat controlled congress in the early days of the (corrupt) Clinton administration.
The WTO declares these illegal tax breaks a violation of (sacred) "international law" and the Bush administation and responsible members of Congress respond to the will of the "real legal authorities" that the Democrat's respect so much.
Democrats cry foul when their (illegal) tax breaks are taken away.
What's wrong with this picture?
But aren't all those tax cuts for Hollywood just "tax cuts for the rich"? I don't see Tom Cruise or Michael J. Fox going hungry!
Correct. Hollywood "actors" and professional sports players (for some strang reason) were exempted from the "millionaire tax" that added a 10% tax surcharge on incomes over $250,000 a year.
Remember Al Bore on Larry Moron Live respond to the question, "but $250K is not a million" with "it is if you earn it for four years."
Tax breaks are supposed to go to industries that offer UTILITY to this country, such as airlines, steel, manufacturing, etc. What the hell has Hollywood ever done for this country that warrants a tax break? Entotainment?! PLEASE!
Umm, why is it that the WTO is deciding if tax breaks are legal or not?
WHAT THE HEY????? Who the heck gave them that power?
I cry loads of crocodile tears for Speilberg, Streisand, Sarandon, Baldwin and the other Hollywood types!
Frankly, I wish the GOP leadership had the guts to tell Hollywood - You don't represent American values - we're tired of your actors and directors and their political -anti American tirades and we're not going to subsidize it.
I don't see any negative in letting them know upfront that they are being punished. Negative behavior = negative consequences.
BWAAAHAHAHA Remember ALL the hateful rhetoric that you Hollywood RATS have directed at the Republicans, and especially at President Bush? Guess they showed you Hollywierdos! Do I personally believe it's payback? Yes, I do, and I LOVE it. LOL
That is not the fault of the GOP. It is the people that pay to go see it.
Hollywood can simply stop making movies. That'll show us. We'd have to get outdoors and have family fun doing other things. Parks, sled riding, golf, frisbee golf, picnicing, visiting friends. Wait just a minute...this is beginning to sound like the USA would actually be able to survive without Hollyweird!!
What am I saying??? /sarcasm
'bout time.
They want to crucify Bush.. but then beg for the tax breaks that he is pushing.. whats wrong.. i though they wanted "higher taxes."
Oh, yeah thats right, just higher taxes for everyone but themselves. :)
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