Tax cuts enacted in 2001 and 2003 are set to expire at the end of the year, leaving us with a decision to make. Do we extend the cuts, or do we raise taxes? I think we should look to liberal Hollywood for the answer.
Denzel Washington was filming a movie in New Orleans when Hurricane Katrina hit. He and the producers said they rushed back to the city to finish filming as quickly as possible because of all the local jobs the business would produce. New Orleans took notice and lowered taxes on Hollywood productions, which resulted in an increase of filming from nine in 2005 to a record 21 in 2008. When the TV show "K-Ville" filmed there, city officials said it added $1 million per episode to the local economy.
But perhaps the finest tax lesson to be learned comes from New York. Faced with a large budget deficit, New York floated the idea of raising taxes on Hollywood productions. Noted Hollywood liberal Alec Baldwin, star of the New York-based TV show "30 Rock," loudly protested, claiming that if taxes were raised, New York would actually lose revenue because production would move out of state.
Yep, I think liberal Hollywood teaches a great tax policy lesson.