Michigan Film Subsidy Program Shortcomings
An Op-Ed by Mike LaFaive, director of the Morey Fiscal Policy Initiative, in today's Detroit Free Press highlights the failures and costs of Michigan's film subsidy program.
An extensive list of commentaries on the program by Mackinac Center analysts can be found here.
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Oh, and by the way...
...cutting taxes on businesses and the wealthy is even less efficient than the tax credit at creating jobs. It will do no such thing when tax rates are already relatively low. And, yes they are low in Michigan. The BIG LIE being told is that Michigan's tax rates are oppressive and discourage business. Nope. Even the conservative tax foundation ranks Michigan 27th in per capita tax burden.
The problem in Michigan has been that we are too heavily dependant on the Auto Industry for our economic growth, and then when the auto industry suffers -- Michigan suffers. States with much higher tax burdens than Michigan are doing much better than we are. Why? Because they invest in education, infrastructure, have a welcoming culture for young people (you think immigrant, minority and gay bashing isn't going to drive tolerant young people out of Michigan?) -- and have a more diverse economy -- or one geared to 21st century high tech or biotech knowledge based industries.
Rather than be an embarrassing mouthpieces for rightwing failed tri0kcle down discredited vood doo economics, maybe you should contribute something useful to our state?
Another dishonest hack analysis
Wow. the number of jobs in the "Motion picture and sound recording industry" declined by 10% between 2007 and 2009! That sure is a compelling stat! Except when you break it down.
The tax credits you are lying about don't cover "sound recordings," which of course include the music industry. The music industry has been taking a massive hit in the digital age. And what is included in the "motion picture" industry? You don't tell us whether that includes all the jobs lost due to significantly decreased television advertising budgets for the Detroit three and other Michigan businesses trying to cut back on costs during the recession. TV advertising is also not covered by the tax credits. You also ignore the video game industry growth, which is not included in "movie production."
What's more the argument itself is easily debunked by simply looking at the dramatic increase in the shear number of projects that have been filmed in Michigan since 2007. No one looking at that would believe that the overall jobs directly related to movie and film production in Michigan have dropped. That is virtually an impossibility.
The Mackibac center has two choices. Be an honest contributor to the debate -- and make principled arguments -- or continue to lie. It appears you have decided to be dishonest because you do not think a principled debate will convince people to do as you believe should be done. Of course the tax credit is creating jobs.
You could have continued arguing that it was a less efficient way to do it than other means. But, no. You chose to make stuff up. Sad.