[magellan]

Originally Posted by michigan83

Can a knowledgeable person explain to me why this is called a "tax break?" If we are paying for production costs with taxpayer dollars, it seems like it should be called a "tax give."

Agreed. It's actually not called a "tax break" in the film industry situation. I've heard it called a "tax incentive" or "tax rebate." Tax breaks usually mean you pay less taxes that you normally would, not actually "get money" the more you spend. Michigan now has the reputation of having one of the sweetest tax incentives in the country for film makers.

[michigan83]

Agreed. It's actually not called a "tax break" in the film industry situation. I've heard it called a "tax incentive" or "tax rebate." Tax breaks usually mean you pay less taxes that you normally would, not actually "get money" the more you spend. Michigan now has the reputation of having one of the sweetest tax incentives in the country for film makers.

I wonder if there will come a time when we could scale back the incentives without ruining what we've got going with the film industry. Would they just pack up and leave for a state that had better incentives? Or will we get to a point where the film industry is established and will stick around, even without huge incentives?

I don't know the answers, but these are my main questions about the film industry thing. My gut tells me that, in the long term, it doesn't make sense to keep paying these huge incentives. There has to be a point the state can actually tax the film industry like any other business and gain revenue from it. Right?

[Coldjensens]

No.

They come here because of the incentives. When the incentives go away, they will move on to the state that will subsidize their movie. The advantage is that people will see neat things in Michigan and want to move here. At least that is the concept. However the use of Detroit for post apocalyptic scenes is not going to draw people here.


What happened to the rebound today? UGH!

[YAZ]

Originally Posted by Coldjensens

No.

They come here because of the incentives. When the incentives go away, they will move on to the state that will subsidize their movie. The advantage is that people will see neat things in Michigan and want to move here. At least that is the concept. However the use of Detroit for post apocalyptic scenes is not going to draw people here.


What happened to the rebound today? UGH!

If you're talkin' about the Dow then don't worry too much. It's expected to be a roller coaster ride for a while. Hang on.

I've noticed this strange phenomena in my old neck of the woods in SE MI:

Companies moved there for "tax incentives", then moved out when the incentives went away. On to another area with better incentives of course. What the local communities get is more folks working in the area that eventually pick up the slack, and these are the folks that end up paying the taxes. Sales, property, sewer, etc.

Fair?

Maybe....maybe not.

If they're good paying jobs, then it seems fair.

Not so fair when the employees are "enjoying" $9.00 per hour.

[magellan]

Originally Posted by Coldjensens

No.

They come here because of the incentives. When the incentives go away, they will move on to the state that will subsidize their movie. The advantage is that people will see neat things in Michigan and want to move here. At least that is the concept. However the use of Detroit for post apocalyptic scenes is not going to draw people here.


What happened to the rebound today? UGH!

Film companies are very mobile. What will stay is if a couple of somewhat major production companies open facilities here, with soundstages, etc.. Until that happens, like you said, the films will leave when the incentives leave.

It's not going to be a major industry here by a long shot. Even if you combined all the major movie studios in Hollywood, and all the people they employ, their economic impact wouldn't even match the economic impact of just the GM plants in Lansing and their employees/suppliers.

Keep in mind too (your last sentence), that there are five states included with Michigan that are leading the rebound. That leaves 45 states that are flat or are have still shrinking economies. What is startling is what is happening in Nevada and California with foreclosures (still). And I read that Chicago metro area shed 76,000 jobs this year so far, Detroit only lost 17,000.

[1coolcustomer]

Michigan...it's good news and I always knew you can't keep her down forever. Really there is no excuse for it's recent woes. Where I lived in MI was smack dab in between 2 of the largest metros in the U.S.....Chicago and Detroit. What do those millions of folks need every week? FOOD!

It's really incredible the amount of jobs a large food production facility can produce. Many run 3 shifts around the clock and pay a decent livable wage. The jobs created by these facilities is enormous from printing and packaging, internal network and tracking systems, right on down to the company that picks up and washes uniforms and shop rags. IMO MI leadership needs to quit blowing smoke about films and windmills and do whatever it takes to attract more food production facilities.

[michmoldman]

Originally Posted by 1coolcustomer

Michigan...it's good news and I always knew you can't keep her down forever. Really there is no excuse for it's recent woes. Where I lived in MI was smack dab in between 2 of the largest metros in the U.S.....Chicago and Detroit. What do those millions of folks need every week? FOOD!

It's really incredible the amount of jobs a large food production facility can produce. Many run 3 shifts around the clock and pay a decent livable wage. The jobs created by these facilities is enormous from printing and packaging, internal network and tracking systems, right on down to the company that picks up and washes uniforms and shop rags. IMO MI leadership needs to quit blowing smoke about films and windmills and do whatever it takes to attract more food production facilities.

Great idea for sure, but the movie industry is not a total bust. It generates talk about Michigan, and brings in movie stars who also generate talk about Michigan. Its not always about how much money its bringing in, and in this case its about the publicity it generates for our great state. There is a lot of positive buzz about Michigan lately, and it has to do with a lot of different things all coming together. I also read this morning about the top 10 housing markets of the future....Michigan is listed as number 3....more great buzz...even if it doesnt happen.

[ehondo670]

How can Michigan be in a rebound, when the entire nation is on the bring of a depression? By 2011, we're going to see inflation skyrocket to levels that haven't been seen in decades. There will be absolutely no growth.

The wonderful Obama administration has prolonged this dreadful recession. If you don't believe it, just take a look at the jobs numbers. They're all starting to rescind now that the stimulus money if falling off.

Please don't vote Democrat this November. We have to sort the losers and winners in order for our economy to regain its strength; unfortunately, the Democrats don't seem to want to do that.

[magellan]

Originally Posted by ehondo670

How can Michigan be in a rebound, when the entire nation is on the bring of a depression? By 2011, we're going to see inflation skyrocket to levels that haven't been seen in decades. There will be absolutely no growth.

The wonderful Obama administration has prolonged this dreadful recession. If you don't believe it, just take a look at the jobs numbers. They're all starting to rescind now that the stimulus money if falling off.

Please don't vote Democrat this November. We have to sort the losers and winners in order for our economy to regain its strength; unfortunately, the Democrats don't seem to want to do that.

I'm going to go out on a limb and guess that you didn't click the link and read the study. Just a guess though...

If you have something to counter the report put out, other than your own speculation and political agenda, please post it.

[ehondo670]

Uhm, I'm pretty sure the unemployment number is pretty transparent. If there is limited growth & an inordinate amount of money on the market, it eventually leads to severe inflation.

Sorry you don't understand macroeconomics 101