Monday, June 16, 2008

Film subsidies 

Remember the story last month about Minnesota passing tax benefits for filmmakers, with the purpose of getting the Coen Brothers to make a movie here? Massachusetts has done the same thing, and now is having a little bit of buyers' remorse:

But a new government study suggests much of the money will go to high-paid Hollywood actors, raising questions about the value of the incentives.

The analysis by the Department of Revenue this week estimated that at least half the film-industry payroll spending will go to out-of-town residents, mainly actors, directors, and producers commanding salaries of more than $1 million each. The Revenue Department assumes they will spend only a fraction of their paychecks in Massachusetts, limiting the benefits to the local economy.

"It's not the best use of taxpayers' money," said Representative Steven D'Amico, Democrat of Seekonk, who requested the study. "I don't think it's good business to be subsidizing the salaries of rich movie stars."

Dang those leakages!

(h/t: Newmark's Door)

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