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national politics & policies subsidy tax policy

The New Hollywood?

It may be the president’s goofiest idea yet.

His Monday brainstorm was for the federal government to get into the movie business. In a Truth Social post, Mr. Trump floated the notion of creating a “Federal Production Incentive to create Entertainment Jobs in America.” So this isn’t exactly a socialist proposal — where the government would seize the means of production and go about making movies — it’s a subsidy proposal: tax breaks; to “benefit ALL of America.”

Trump posts as if he has worked the math out, where the booty the government loses in direct taxation “will be made up tenfold by the money pouring into the Treasury’s coffers.”

A familiar rationale. But does it work? Do tax credits incentivize producers so much that taxes downstream of the productions make up for all the bother and paperwork?

Well, no need for theory. States already have such programs.

Tosin Akintola, in his Reason article — “State Film Subsidies Lose Money. Trump Wants To Try the Idea Nationally.” — found that “the film and TV industry in eight states returned between 3 cents and 31 cents for every dollar.” 

Entertainment projects do not create that many jobs.

We used to talk about the states as “laboratories of democracy,” by which we meant “laboratories for policy.”

The point isn’t to take the failed experiments and run them at the federal level, hoping for something different.

Sure, Hollywood is lame. But don’t make Washington the new entertainment capital of the world. It’s doing bad enough as the capital of more serious business.

This is Common Sense. I’m Paul Jacob.

Hollywood, entertainment, Washington DC, democracy, subsidy, tax break

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Democracy — Oh, My!

The President-elect has had some difficulty booking celebrity acts for his inauguration. And instead of taking this as a cue to trim down on celebratory excess, his team has extended the guest performer list to include New York’s world-famous chorus line dancers, the Rockettes.

The leggy, sequined showgirls might seem a perfect fit for the President-elect’s celebration — more, say, than a ballet troupe, or a string quartet — but one among the Rockettes protested.  Being a part of a performing team might seem a dream job, but not for Phoebe Pearl. She was, she wrote on Instagram, “overwhelmed with emotion,” and not in a good way. She felt “embarrassed and disappointed” that the gig “has been decided” for her.

She feels . . . coerced.

Dan Avery, writing before Christmas, characterizes the contract as a matter of “force.”

Welcome, Ms. Pearl, to the world that most American workers already know.

But the silliness reached high pitch with actor George Takei, who tweeted: “The members of the Rockettes and the Mormon Tabernacle are like all of us: Forced to go along with something horrible they didn’t choose.”

Democracy — oh, my!

Most people have had to put up with democratic results they did not like. Are Democrats only now understanding this?

To a degree, I sympathize. Which is why I want limits placed on government. Perhaps Democrats should have thought of this every time they cheered as their elected candidates increased presidential power. Did they not realize that someday they might lose?

And if you want a right of refusal, make sure it is in your contract.

The Rockette does not have a leg to stand on.

This is Common Sense. I’m Paul Jacob.


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