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Jan 24, 2008

MICHIGAN MOVIE MADNESS

FilmmakingMitch Albom, the talented sports columnist and author, spoke before the Michigan State Senate on Tuesday to exhort our solons to get off the dime and double the special tax breaks the state is already handing out to filmmakers.  According to the Detroit Free Press, the celebrity columnist told the Senate Commerce & Tourism Committee, "This is a booming, growing business, [and] there is a simple way for us to get into it.  Incentives will do it."  Specifically, he advised the senate to increase the special tax cut for production companies filming in Michigan from 20% to 40%.

No doubt we can be sure that Albom knows of what he speaks.  He certainly must be drawing upon a well of expertise in government fiscal policy and the filmmaking industry.  Certainly our senators didn't invite him to testify and then eagerly promise him quick action just because Mitch is a native son who is now a bigshot celebrity.  Right?

The real issue that our lawmakers should be considering is not whether Michiganders should give filmmakers an even bigger subsidy, but why are we giving them any subsidy at all?  If excessive taxation is stifling the growth of the filmmaking industry in Michigan, then it's stifling the growth of business in general.  If cutting taxes for one industry makes sense to get more of it in Michigan, then cut taxes across the board to get all businesses booming in the Winter-Water-Wonderland.  Yes, taxes need to be cut, but not as special favors for some and nothing at all for most.

Besides, what great boon would filmmaking bring to Michigan?  How much wealth would it create in this state?  How many jobs would be added?  How many tax dollars would be put in the public coffers?  It would be one thing if Michigan became a new hub for the filmmaking industry, instead of merely accommodating itinerant production companies, but then tax breaks aren't going to drive that development.  The fundamentals of what that industry needs to thrive would.  Either it makes sound business sense to make movies and t.v. programs in Michigan or it doesn't -- and taxation and regulation are just one part of that calculus for filmmakers.

Like the bio-tech boondoogle, we shouldn't let the politicians bet our tax dollars on the latest fancy in economic development.  What we should demand of our politicians are policies that get the state and local governments out of the way of businessmen who want to grow businesses and industries that are naturally suited to the many advantages that Michigan offers.  (And those advantages are big ones, which is why our state has been able to carry such a heavy tax and regulatory burden -- but only for so long as the current economic distress demonstrates.)  We don't need them picking which businesses and industries do and do not get the largesse of our tax dollars, especially when they rely upon the advice of such "experts" as Mitch Albom.

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Comments

Yeah, but c'mon... aren't you proud to be the city that brought the world the creator of American Pie?

--Nick
www.RightMichigan.com

Oh sure, Nick. It makes my chest swell with pride. ;)

Then of course there's Hollywood writer-director Paul Schrader who painted such a lovely portrait of his hometown of G.R. in "Hard Core" and has had such kind things to say of the conservative Christians here since then.

So, by all means, let's subsidize even more of these tributes to G.R.

Regards, Bill

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