12/9/2011

I started to write this post on September 4th and just realized that I never published it.

Enjoy

September 4th, 2011 (5 days till the day of reckoning, On Sept. 9th the Ca. Senate will vote to extend or kill the Tax Credit/Jobs Program in Ca.)

I don’t know about you, but if I were a newspaper writer, I would have the cajones to stand behind what I write or I would not write it.

Did this person know that they were going to catch some hell for writing this piece of trash?!

The editorial that I am speaking about is cut and pasted below in its entirety from The Sacramento Bee.

This anonymous moronic, idiotic misinformed and misquoting malcontent really needs to look for another line of work.

Maybe it’s Dan Morain, here is Dan’s literary masterpiece that we blogged about some time ago:

http://shootmoviesincalifornia.com/a-writer-from-the-sacramento-bee-thinks-that-southern-california-is-another-state/}

My comments will be below this new article.

Here is the  link http://www.sacbee.com/2011/09/03/3881754/send-film-tax-credit-to-cutting.html#disqus_thread

Here is the cut and pasted article:

“A bill to extend a half-billion dollars’ worth of tax credits to California moviemakers has been scaled back substantially. Good. But it would be even better if legislators held up Assembly Bill 1069 for at least a year.

The tax credits in this bill are intended to persuade movie and TV producers to keep their operations in California. Los Angeles Assemblyman and City Council candidate Felipe Fuentes introduced the bill.

For L.A. politicians, movie industry tax credit bills are always a good local campaign issue. The original movie tax credit measure was introduced in 2009 by then Assemblyman and now Los Angeles City Council member Paul Krekorian. It helped him win his seat on the council. No doubt, Fuentes hopes his will do the same for him.

According to Fuentes, more than 40 other states provide tax incentives to lure movie production and the high-paying jobs that go with it to their communities. Over the last three years, he claims, movie tax credits have resulted in $2.2 billion in direct spending and saved thousands of jobs.

But that claim is impossible to substantiate. Movie companies are in California to take advantage of unique benefits this state offers – such as a huge pool of talent, big sound stages, a moderate climate and technological know-how. Critics argue persuasively that tax credits are a waste of money, serving only to reward moviemakers for doing something they’d do anyway – make movies in California.

The Fuentes measure, which originally authorized a five-year tax credit extension, has been scaled back to a single year. But why extend them at all? The state’s existing tax credits are not set to expire until 2014. A single year’s extension will cost California $100 million at a time the state is struggling to balance its budget.

Lawmakers should first ask the Legislative Analyst’s Office to assess the real economic benefit, if any, of movie industry tax credits. If, after that study, lawmakers wanted to extend the tax credits, they would be wise to add an “out clause” to suspend such tax breaks if state revenues in future years fell below Department of Finance projections.

Given California’s precarious finances, legislators should not extend tax credits this year for moviemakers or any other industry.

Meanwhile, the governor would be wise to sign Senate Bill 508, crafted by Sen. Lois Wolk, D-Davis. Among other things, this bill would require a study, sunset provisions and performance-based measurements for all future tax breaks, as are being proposed for the tax credit extensions sought by Hollywood.”

Lets start with the first paragraph; “A bill to extend a half-billion dollars’ worth of tax credits…”

Now this person is good at “spin” because he/she knows that its much better to say a half-billion than 500 Million and of course don’t say that the 500 Million Dollars is spread over 5 years and also don’t talk about the positive financial findings of the first 2 years of the program by the Los Angeles Economic Development Corp.

Lets jump to the third paragraph:

“For L.A. politicians, movie industry tax credit bills are always a good local campaign issue. The original movie tax credit measure was introduced in 2009 by then Assemblyman and now Los Angeles City Council member Paul Krekorian. It helped him win his seat on the council. No doubt, Fuentes hopes his will do the same for him.”

Master/Ms. so called jouranlist, Of course the movie tax credit bill is a good local campaign issue! Here is how it works in most cases when you run for office or you are in office and trying to get some attention (unless your Gary Hart for those of you that remember).

You find a good issue and your rally around it. Movie tax credits are a great issue for California for many reasons.

1. As I stated before, the LAEDC report about the first 2 years of California’s Tax Credit Program ( I like to call it a jobs program) works and does not lose money.

2. The California Film and TV Tax Credit Program creates jobs, and are jobs not are what is going to kick start the economy?!?!?

3. Try opposing this issue and see how your chances of getting re-elected or even elected are.

In regards to your comment about then Assemblyman Paul Krekorian using this issue to win his seat on the LA City Council, I am sure it helped, but Paul was also clearly the better candidate, but you probably would not know who he even ran against!

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