Taunton and Plymouth both have major film endeavors and when questions and challenges have been raised about my personal ideas about NEW sources of revenue, it surely makes one wonder about the viability in Middleboro.
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Tax breaks draw films, but cost state
$120m revenue loss over 3 years fuels critics' call for cuts to program
By Todd Wallack
Globe Staff / March 27, 2008
Encouraged by a bundle of new tax incentives, dozens of movie and television directors have flocked to the Bay State in the past year - bringing actors like Kevin Spacey, Cameron Diaz, and Matthew McConaughey to the area for filming. But stardom has its price.
more stories like this
According to a report by the Department of Revenue, the tax incentives have cost the state $119 million to $120 million in lost tax revenue over the past three years, which could give new ammunition to critics of the tax incentives and may force the state to cut back on other spending. The analysis comes at a time when the state faces a $1.3 billion budget deficit that could make it a challenge to fund the tax breaks.
"Government should stop playing favorites with various industries," said Barbara Anderson, the executive director of the Center for Limited Taxation and a longtime crusader for smaller government in the state. "This is about politicians rubbing elbows with Hollywood celebrities."
But the report also suggests the film productions have generated $545 million in direct spending from 88 productions, which supporters say has given a major boost to the local economy and outweighed the cost of the tax breaks. The report also cited employment data that indicated the state has created hundreds of jobs in the motion picture and video industries.
$120m revenue loss over 3 years fuels critics' call for cuts to program
By Todd Wallack
Globe Staff / March 27, 2008
Encouraged by a bundle of new tax incentives, dozens of movie and television directors have flocked to the Bay State in the past year - bringing actors like Kevin Spacey, Cameron Diaz, and Matthew McConaughey to the area for filming. But stardom has its price.
more stories like this
According to a report by the Department of Revenue, the tax incentives have cost the state $119 million to $120 million in lost tax revenue over the past three years, which could give new ammunition to critics of the tax incentives and may force the state to cut back on other spending. The analysis comes at a time when the state faces a $1.3 billion budget deficit that could make it a challenge to fund the tax breaks.
"Government should stop playing favorites with various industries," said Barbara Anderson, the executive director of the Center for Limited Taxation and a longtime crusader for smaller government in the state. "This is about politicians rubbing elbows with Hollywood celebrities."
But the report also suggests the film productions have generated $545 million in direct spending from 88 productions, which supporters say has given a major boost to the local economy and outweighed the cost of the tax breaks. The report also cited employment data that indicated the state has created hundreds of jobs in the motion picture and video industries.
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The Department of Revenue offers a 13 page report in pdf format at LINK.
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I would be interested in the comments of others on this issue.
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