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CA: Schwarzenegger, Núñez join to give movie industry a handout (Taking care of business?)
Sac Bee ^ | 8/19/05 | Dan Walters

Posted on 08/19/2005 9:26:50 AM PDT by NormsRevenge

California's Democratic politicians often decry special tax loopholes and other corporate subsidies, but when it comes to one business sector - the movie industry - they make a huge exception.

Not only is the Southern California-based movie industry heavily unionized, but its executives are almost all political liberals who donate lavishly to Democratic campaigns.

That, in a nutshell, explains why the Democratic speaker of the Assembly, Fabian Núñez, quietly amended a bill this week to grant movie producers tens of millions of dollars in subsidies from a state treasury that already is drowning in red ink, with multibillion-dollar annual deficits.

Núñez is at odds with Republican Gov. Arnold Schwarzenegger - a towering movie figure himself - on virtually everything, but the two are joining forces on this movie industry handout, and with that strange-bedfellows alliance, the subsidy bill is likely to be whipped through the Capitol in the final few weeks of the session. Schwarzenegger advisers participated, along with the speaker's office and industry emissaries, in the drafting of the measure.

--snip--

No matter how it may be decorated like a Hollywood soundstage, however, the Núñez bill (Assembly Bill 777) is just a handout to some of the state's wealthiest residents. And it's not one whit more justifiable than any of the corporate subsidies that Núñez and other Democratic politicians routinely denounce as robbing the state treasury of money that's sorely needed for schools, health, welfare and other vital programs.

Movie producers would be given a 12 percent refundable tax credit, up to $3 million for each film, and TV programs would be given another 3 percent injection of state funds. ...

(Excerpt) Read more at sacbee.com ...


TOPICS: Business/Economy; Crime/Corruption; Politics/Elections; US: California
KEYWORDS: handout; hollyweed; hollyweird; hollywood; join; movieindustry; nunez; sb777; sxhwarzenegger

1 posted on 08/19/2005 9:26:51 AM PDT by NormsRevenge
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To: NormsRevenge
Ah, gotta love that corporate welfare.

I'll be waiting for the idiots who still defend the government's much larger bailout of Chrysler to either attack this (revealing themselves as hypocrites) or defend this (revealing themselves as out and out socialists).

2 posted on 08/19/2005 9:28:34 AM PDT by Clemenza (Pirro is Hillary with an (R))
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To: NormsRevenge

They're trying to convince them to film in CA as opposed to going to Canada which gives out all sorts of goodies to film companies who go there.


3 posted on 08/19/2005 9:28:36 AM PDT by Borges
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To: NormsRevenge
Movie producers would be given a 12 percent refundable tax credit, up to $3 million for each film, and TV programs would be given another 3 percent injection of state funds. ...

With a large chunk of it headed right back into Democrat Party coffers.

4 posted on 08/19/2005 9:30:01 AM PDT by Carry_Okie (There are people in power who are truly evil.)
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To: Carry_Okie

Not really.... The below the line guys (most likely conservatives) are the ones who get hurt with Runaway away production... Production is down 33% mostly to other states who have implemented tax schemes and rebates... Arnold is only trying to level the playing field...


5 posted on 08/19/2005 9:33:22 AM PDT by ARA
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To: ARA
I am well aware of the trend because I know a key grip and have known others in the industry. It's no excuse.

As far as I am concerned, buying revenue with tax discounts for some businesses while sticking it to others is patently illegal.

6 posted on 08/19/2005 10:16:13 AM PDT by Carry_Okie (There are people in power who are truly evil.)
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To: NormsRevenge

Okie-dokie. The Dems support unions, minimum wages, and other regulations ultimately making doing business in California intolerable, and, instead of correcting those influences, they will now tax every citizen so that those intolerable factors are affordable.

And they'll try to label this some sort of 'pro-business' law. It looks to me like an anti-citizen law.


7 posted on 08/19/2005 11:58:14 AM PDT by calcowgirl
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To: Carry_Okie

not at all... Business' of every kind are wooed with tax incentives and the like... What other business' are getting stiffed... would those business, if true, be able to file a suit for discrimination...


Jeez...

Lighten up a little...


8 posted on 08/19/2005 1:02:38 PM PDT by ARA
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To: ARA
Arnold is only trying to level the playing field...

That was a fine Soviet objective, also.

9 posted on 08/19/2005 1:30:52 PM PDT by calcowgirl
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To: calcowgirl

Whatever... the benefit far exceeds the cost and it is recouped many times over...

Will you folks get real and think it through and not react with your rigid philosphy... pleeeeeeaze....

Cusack


10 posted on 08/19/2005 1:35:55 PM PDT by ARA
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To: ARA
not at all... Business' of every kind are wooed with tax incentives and the like... What other business' are getting stiffed... would those business, if true, be able to file a suit for discrimination...

Small business can't afford such lawsuits. They pay full boat, while the entertainment industry gets subsidies.

11 posted on 08/19/2005 1:42:50 PM PDT by Carry_Okie (There are people in power who are truly evil.)
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To: Carry_Okie

With all due respect... As a small business owner myself, they mostly do not add much to the employement pool as larger entitites do... Collectively yes, which is why there are organizations that allow for the SBOwner to petition the government...


12 posted on 08/19/2005 4:59:05 PM PDT by ARA
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