Kentucky's Ridiculous New Taxpayer Giveaway to Hollywood
If you haven't caught on yet, Kentucky passed a law in the special session to GIVE TAXPAYER MONEY AWAY to PEOPLE PRODUCING MOVIES.
We don't use caps often. Ever.
It is warranted. The economy is a mess. We just hiked taxes on everyone.
Why?
So we can give Hollywood producers that money.
Here's the Herald-Leader's great culture/entertainment writer, Rich Copley:
The tax credit is expected to cost Kentucky $15 million in its first year and $13.4 million the following year, according to the Legislative Research Commission.
The credit is applied against a film company's corporate income tax, but it's possible for a company to garner credits that are worth more than its tax bill. If that happens, the state must cut a check for the difference.
Also, there's no guarantee that tax revenue from the additional jobs spawned by the tax credit will pay for the program.
In Massachusetts, a recent study found that the state got less than $1 in additional revenue for every $5 it spent on film tax breaks.
The article goes on to attempt to credit the previous Fletcher Administration for laying the groundwork. As a personal aside, the reason Fletcher never passed the package is because he would never agree to making the program a refundable tax credit subsidy. We considered it an unjustifiable use of taxpayer money then, and, in today's economy, we find it unfathomable!
The Kentucky Club for Growth encourages you to write your legislators and ask them why they raised your taxes so they could give that money to Hollywood movie producers!?!
