Thursday, March 29, 2012

Upton Smears Jack (Part 3)

The third mailing from Congressman Fred Upton smearing Jack Hoogendyk focuses on Jack supporting a tax cut for movie production. According to Upton, that means Jack is "rolling out the red carpet for Hollywood fat cats." Once again, Upton fails to mention that the bill in question passed the legislature UNANIMOUSLY.

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Reality: Here Upton is attacking Jack for cutting taxes! Here is the Mackinac Center description:
1) 2005 House Bill 5206 (Movie production tax breaks ) by admin on January 1, 2001
Introduced in the House on September 21, 2005, to authorize Single Business Tax (SBT) credit equal to 130 percent of the costs incurred by a motion picture production company that spends at least $250,000 making a movie in Michigan. The company could sell the amount of the credit that exceeds its tax liability, or could carry that forward to a future tax year
This bill was introduced by REPUBLICAN Fulton Sheen (along with Jack, one of the most conservative members of the legislature). It was passed UNANIMOUSLY 103-0.

2005 House Bill 5206: Movie production tax breaks
2005 House Bill 5206: Movie production tax breaks (House Roll Call 576)
House Journal 11/8/05

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At least one letter-writer understands the issue.

Upton criticism of Hoogendyk was misleading
Editor,

I am writing today, to set the record straight on a flier sent out by Congressman Fred Upton accusing his opponent, Jack Hoogendyk, of giving tax breaks to "Hollywood Fat Cats."

Let's look at the real record. Upton cites roll call vote 576 in 2005, House Bill 5206: Tax credits for film production. It passed 103 to 0 in the House on Nov. 8, 2005. Upton then mentions roll call vote 146 of 2008, House Bill 5841: Tax credits for film producers. It passed 108 to 0 in the House on March 12, 2008. Both bills were supported by our own state Rep. John Proos.

Now let's look at the benefits of this legislation. It was reported in February 2011 that a "research study conducted by respected international accounting firm Ernst & Young already shows a positive Return on Investment (ROI) from Michigan's film production tax credit."

Larry Alexander, president and CEO of the Detroit Metro Convention and Visitors Bureau said, "When the final report was presented to us last week, we were delighted to learn that this fast growing new industry had already created 3,860 full time equivalent jobs for Michigan residents in 2010, at an average salary of $53,700 per year, and generated an estimated impact on statewide sales of $503 million in 2010 alone ... or $5.94 per dollar of net credit cost."

I want to thank reps. John Proos and Jack Hoogendyk for their vision and leadership in bringing jobs to Michigan.

Michael Emlong

St. Joseph
I'm not a big fan of 'targeted' tax breaks, and neither is Jack. Broad-based tax cuts are much better. But rank-and-file members can't choose their preferred tax policy, they have to vote yes or no on the bills as presented.

Fred Upton has attacked every Republican member of the state house. He should be ashamed of his dishonest attacks. Besides, what's wrong with fat cats?



Previous:
Upton Smears Jack (Part 2)
Upton Smears Jack
Jack's Response to Upton Mailer

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