Movie Makers Cast Politicians as Big Spenders
|February 26, 2014||Posted by Staff under Subsidies & Waste & Public Debt|
This 2014 excerpt of Grok Granite, Feb 22, is by Skip Murphy.
An example of rent-seeking is when a company lobbies the government for loan subsidies, grants, or tariff protection. These activities don’t create any benefit for society, they just redistribute resources from the taxpayers to the special-interest group. Among those industries that are most apt to seek demand tax relief for what is just ordinary business is the Entertainment business.
Dear Governor O’Malley,
I wanted you to be aware that we are required to look at other states in which to film on the off chance that the legislation does not pass, or does not cover the amount of tax credits for which we would qualify.
Senior Vice President, Television Production
Politicians may be thinking the equation of most “the giving away of our peoples’ monies will be more than compensated by the extra revenues spent by the production crew” – it hardly ever works out that way.
Ed. Notes: Now you know why they call movies “magical”. They get even the powers-that-be to swoon. If Maryland or any state wants to attract filmmakers or any industry, all it has to do is quit taxing wages and other earnings, plus recover land rents, spurring owners to put/keep all locations at best use. Then the jurisdiction will be swamped with businesses, new and old, factual and fictional. Something similar worked well for the Asian Tiger.