Outrage: State Gives $800K in Tax Dollars to Disney
Really. Here's Governor Beshear's press release bragging about it. What you need to know: a "refundable tax credit" is money the government will pay regardless of other considerations -- like whether the company actually paid taxes to refund.
The Kentucky Tourism Development Finance Authority approved an application for the film "Secretariat," from Fast Track Productions, Inc., a subsidiary of Disney Studios, about the 1973 Triple Crown winner.
"This is a great way to kick off Kentucky's new film incentive package," said Gov. Steve Beshear....
Fast Track Productions' application projected $4 million in expenditures, meaning the production is eligible for $800,000 in tax credits.
There is no way spending $4 million would ever equate to $800,000 in state revenues. If the company went and spent the entirety of the $4,000,000 at Home Depot, Kentucky's 6% sales tax would net $240,000. If they spent the $4 million employing a single individual, the income tax that individual would pay wound mean only $239,666. Even if they spent the money entirely on one of our highest-tax items, cigarettes, that would only possibly net about $480,000 (if a pack costs $5).
The Governor (and his wife, apparently) are giving over half-a-million of your hard-earned dollars to media giant Disney and bragging about it!
