When Governing Magazine doesn’t like a big-government tax scheme, you know it’s really bad news. Take, for example, corporate welfare for motion picture productions:
“During the past fiscal year, according to a recent study, New Mexico granted $38.2 million in tax rebates for TV and movie production, but in return saw only enough increase in economic activity to generate $5.5 million in public revenue. “For every one dollar in rebate,” the study concluded, “the state only received 14.44 cents in return.””
“Over the past five years, all but 10 states and some cities have created film-incentive programs. This has spread production around, but no one has come up with a formula that can be shown to provide a net economic benefit for the state or locality itself.”
As if on cue, Kentucky is getting in on the act with Rep. Tommy Thompson’s pre-filed effort to match New Mexico.