Movie Welfare

The state government is proceeding with its ridiculous plan to give our tax dollars to movie studios.

Movie incentives come with price tag

LANSING, Mich. (AP) — When Gov. Jennifer Granholm signs tax incentives aimed at making Michigan the country's most attractive place to make movies, they may come with a hefty price tag.

The marquee piece of legislation will give film studios up to a 42 percent refundable credit on production expenses in the state — the most lucractive in the United States.

For example, if an out-of-state studio has no Michigan Business Tax liability and spends $10 million on production in the state, the state will cut it a check for $4 million. The credit otherwise can be used by in-state and out-of-state studios to reduce their state taxes.

So the government is giving our tax dollars to Hollywood movie studios. That'll have the economy turned around in no time!

At least Nancy Cassis has the right idea.

Cassis, however, criticized the idea of refundable tax credits and said the state should be helping all Michigan businesses.

"We support credits, but going beyond and giving certain favored companies or businesses a check in the mail hurts all those other businesses that are here right now, today, paying taxes," she said. "They are not receiving any relief. They are trying to hold on."

It's tempting to make a joke about the dating game here. It's not really surprising that Democrats would support a scheme like this. What excuse do Republicans have?

If tax cuts are a good idea, why not cut taxes for everyone? In reality, this is giveaway to a special interest. Government should stop pretending that it can pick winners and losers better than the market.