Snyder wants to kill MOVIE incentives!

[REAL LIVE ARTIST]

Rick Snyder wants to eliminate film and TV incentives:
Sound judgement or pragmatic disillusionment


The Detroit Free Press recently termed Rick Snyder as "unbought, independent, and tough-minded". This may or may not be true. However, one thing is for sure-- his untested vision and potential policies under the guise of independent nerd ism is nothing more than main street Republicanism. This isn't anything new. And certainly his disregard of economic stimulation hangs a dark cloud over new and growing entrepreneurs. Especially when it comes to the movie and television industry in our state.

By calling the film industry incentives "dumb and "a gimmick" is just plain ludicrous and completely preposterous. His deceptively strange view and arrogance of what kind of jobs Michigan should have speaks volumes of his confusing pragmatism. Hypocrisy is staring you in the face, Mr. Snyder. You talk about jobs, jobs, jobs. Yet that is exactly what the movie and film industry is currently doing in this state. Creating jobs, not only in urban areas, but in small towns and cities throughout our entire state.

And Rick Snyder wants to kill it !

Jobs not only in the film industry, but jobs for art directors, animators, graphic designers, film directors, photographers, editors, musicians, composers, writers, actors, educators, developers, realtor's, interior designers, builders, carpenters, policeman, auto technicians, transport servers, caterers, painters, and artisans of all kinds This doesn't even include the extended arm of increased business for restaurants, entertainment, and the rental and sporting industry throughout our state.

And Rick Snyder wants to kill it !

More importantly, this industry is one of the better and certainly faster ways of diversifying our states economy. Of course we will still be a major player in the auto industry worldwide--just not like the past. If anything, the film industry, in general, will compliment our already world-class auto companies, promote established and new upcoming businesses, while showcasing Michigan's best assets to the rest of the world.

And Rick Snyder wants to kill it !

The facts are striking. Since offering a 40% tax incentive for film companies out state, total income has increased from two million in film and TV activity to more than six hundred million in less than three years. That's a great start! Actually, it's quite phenomenal! And that is just the beginning. New studios and production houses are being planned along with existing businesses expanding to handle the additional workload. Typically, most businesses take up to five years or more to make a profit. Just to keep a business solvent that long, in today's economy, is quite an accomplishment. By pulling the plug now would be catastrophic.


And Rick Snyder wants to kill it !

This is good work and good pay, that will and has created hundreds to potentially thousands of jobs. Many of these projects involve cutting-edge technology, while hiring some of the best and most creative minds from the arts, science, and education of our state. We need to keep these jobs here! By keeping the film incentives intact, one will not only see continual growth and economic expansion, but a sense of triumph, self-worth, and pride of what Michigan can accomplish. Especially now, when we need it the most. The film industry is a powerful force. It's highly creative, economically lucrative, and can have an emotional and visual impact that profoundly effects peoples lives for a lifetime.

And Rick Snyder wants to kill it !
WHY?

REAL LIVE ARTIST


See attached link: http://mitchalbom.com/d/node/6931

[gazhekwe]

Typical business/Wall Street outlook, can't see beyond the immediate cost-return factor and doesn't see the biggest return, spending and jobs because they don't go directly into the equation. Income to the State - Cost to the State = Return on investment.

He must have flunked algebra, because benefits come in increased jobs, income tax, sales tax, from OTHER businesses, so the equation needs to include Income to the State from Film Industry +income to the state from sales tax spent by film industry+income to the state from income taxes paid on film related jobs +income to the state from sales taxes paid by people who are working in the film industry + income taxes and sales taxes from increased jobs created to fill needs created by the film industry) - cost to the State = Benefit to the state

[rjk]

Is the Michigan goverment that much smarter than the other 49 state goverments? Why hasn't some other state matched or surpassed the Michigan 40% incentive.

I'm not necessarily against the incentive, but I do think it needs to be carefully look at.

[rb336]

Considering one of his BIGGEST supporters is John Rakolta, who is sinking boatloads into the centerpointe studio project in Pontiac, his tune may change

ps - I am still not convinced that the incentives aren't bringing in the bucks. NONE of the reports used against it have gone into any depth about the actual economic impact. Since they were all put together by the "anti" side, I highly suspect there is a good reason for that

[johnsmith]

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And Rick Snyder wants to kill it !

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And Rick Snyder wants to kill it !

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And Rick Snyder wants to kill it !

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And Rick Snyder wants to kill it !

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And Rick Snyder wants to kill it !

REAL LIVE ARTIST

I'd say Bernero had a whopper of a first post here on DY, but, going by his/her writing style, REAL LIVE ARTIST = Mitch Albom?

[Johnnny5]

And Rick Snyder wants to kill it !

Good riddance! I'm still on the fence about voting for Snyder, but I'm glad someone in his position sees the absolute insanity of wasting millions of our tax dollars courting the film industry. These companies will hightail it out of the Michigan as soon as the well runs dry, or even faster if they find another sucker willing to shell out more for the chance to see a "celebrity".

[ndavies]

Another great reason to vote for Snyder. Fix taxes for everybody, not just the favored industry of the day..

[Gistok]

I will miss scenes of movie closing credits with a drive down Lakeshore in Grosse Pointes in the background....

[DC48080]

I will miss scenes of movie closing credits with a drive down Lakeshore in Grosse Pointes in the background....

Ah yes, ala Gran Torino. That was a beautiful closing credits scene.

[56packman]

Why does the film industry rate this special treatment? what about manufacturing and machining, something we know how to do and have [[had) a very skilled workforce working in that field. How about giving the same incentives to that field?

[Islandman]

Why does the film industry rate this special treatment? what about manufacturing and machining, something we know how to do and have [[had) a very skilled workforce working in that field. How about giving the same incentives to that field?

Wasn't that called the UAW?

[56packman]

Wasn't that called the UAW?

No, the UAW took care of themselves first.

[Wingnatic]

Doesn't he want to do something about the current small business tax thats been draining jobs for years now ? And now this ? It seems he's flip flopping around .

[Packman41]

Considering one of his BIGGEST supporters is John Rakolta, who is sinking boatloads into the centerpointe studio project in Pontiac, his tune may change

The development group is NOT “sinking boatloads” of money into the project. You, the taxpayer are the ones sinking boatloads of money into this project. It has been reported that the studios have a construction budget of about $65.0 million. And here are the sources of those funds:

Oakland Co. EDC Bonds [[taxpayer guaranteed): $28.00 million
City of Pontiac ARRA Funds: $ 3.80 million
Michigan Infrastructure Tax Credits: $17.75 million
Federal New Market Tax Credits: $15.10 million
Total: $64.65 million

This is how the developers do it – it is called OPM or Other Peoples Money. They will have next to nothing in this deal. In fact, members of the development firm expect to be paid fees to supervise the construction of the work, construct the new buildings, earn leasing commissions to rent the place out, etc. out of the $65 million budget. Truly, this is a great state. [[sarcasm)

Notice too that there is NOT one traditional lender among the group. That is because the lenders did not think the project had merit and was not worth the risk. The only source of funds is from government sources that are politically motivated. This is the reason it took so long to put this deal together. Nobody, other than the politicos, was behind it.

Here are two sources:
http://www.crainsdetroit.com/article/20100131/SUB01/100129812
and
http://www.theoaklandpress.com/articles/2010/04/27/news/local_news/doc4bd65e426a1c2412094687.txt


[/quote]ps - I am still not convinced that the incentives aren't bringing in the bucks. NONE of the reports used against it have gone into any depth about the actual economic impact. Since they were all put together by the "anti" side, I highly suspect there is a good reason for that[/quote]


If you don’t think there have been any report that have “gone into any depth,” then you need to read the following: http://www.senate.michigan.gov/sfa/Publications/Issues/FilmIncentives/FilmIncentives.pdf . And I would not call the Senate Fiscal Agency as part of the “anti-side.” This report explains how the taxpayers of Michigan paid $193,333 for each of the new 355 jobs created in 2009. It was $186,519 the prior year. If you open up a new Wal-mart you create more than 355 new jobs.

Speaking of in-depth, this Senate Report is in comparison to all the anecdotal reports from tent rental guys, caterers, hotel owners, stand-ins and book authors wanting to make a movie that are part of the “pro-side.” The only replies to the Senate Report speak in generalities, hope for the future, need to do something but no measurable facts and figures to rebut the report.

It is all so easy to do with Other People’s [[Tax) Money.

How about a tax break for everyone instead of just this one special interest group?

[canuck]

I work in film in Canada and I can tell you there are incentives in each and every state and province to begin with. Stopping these measures at a time Michigan and especially Detroit needs it is silly. Quebec increased its tax incentive measures last year to be more competitive. If Michigan doesnt do this, the jobs will go elsewhere. But as I said in another post, the ideal thing is for Michigan filmmakers to produce their own TV and film fiction and act independantly from Hollywood dictatorship. The problem with filmmaking for independants is distribution of course. The majors make sure their product goes out to as many screens as possible. Indy filmmakers have a shot at festivals and then they can be potentially picked up by the Miramars etc...

Yes, it's easy to say money is wasted on this but look at what happens to the hospitality industry and countless others. Young folks who have a chance at a start in the industry should be helped. Keep in mind the industry runs in cycles and will not provide on the same level every year. The better more experienced crews will be hired, some will sit it out for periods, but all in all it keeps people busy, and opens up new possibilities. Actors who study at Wayne State have a crack at playing in movies and thus get paid well, may be tempted to stay in the region. When craftsmen in art departments are not busy on movies, they can apply their skills elsewhere, but this is at least an avenue that is available to them.

[rb336]

]


If you don’t think there have been any report that have “gone into any depth,” then you need to read the following: http://www.senate.michigan.gov/sfa/Publications/Issues/FilmIncentives/FilmIncentives.pdf . And I would not call the Senate Fiscal Agency as part of the “anti-side.” This report explains how the taxpayers of Michigan paid $193,333 for each of the new 355 jobs created in 2009. It was $186,519 the prior year. If you open up a new Wal-mart you create more than 355 new jobs.

That publication actually proved my point. it actually drops to $44,000 when you add the spin-off jobs.
[[edited bit here: None of the oft-cited reports ever mentions that FAR lower number, and they don't mention the spin-off jobs, etc and the taxes collected from them, or the michigan income taxes paid by the actors, crew, etc.)

And Wal-Marts have a tendancy to destroy local businesses AND require huge tax incentives, often resulting in net losses of jobs

[littlebuddy]

With Michigan's weather, etc how many films can be filmed here every year? How many real differrent locations here are film-worthy. I just don't see this as nothing more than a fad.

[tvaspen]

Yea, the prick's gonna win too. Just what we need, another corporatist in the Government. The downward spiral continues...

[Detroitej72]

With Michigan's weather, etc how many films can be filmed here every year? How many real differrent locations here are film-worthy. I just don't see this as nothing more than a fad.

So, judging by your posts, you certainly do not "think outside the box", when it comes to business terms?

BTW, Michigan has played host to over 20 films this year alone!

How much money has been spent by "Hollywood" in hotels, restaurants, catering services, security, and much more, despite the cons[[i.e. Republicans) desperate attempts to kill one of Michigan's thriving industries?

[Packman41]

How much money has been spent by "Hollywood" in hotels, restaurants, catering services, security, and much more, despite the cons[[i.e. Republicans) desperate attempts to kill one of Michigan's thriving industries?

Well, Hollywood spent a lot less than the taxpayers gave them - from the Senate Report, "the State spent $37.5 million in FY 2008-09 to generate $21.1 million in private sector activity and will have spent $100.0 million in FY 2009-10 to generate $59.5 million in private sector activity." So taxpayers gave out $16.4 million in 2008-09 and $40.5 million in 2009-10.

And as for thriving industries - from the same report, "In Michigan, however, the sector is very small relative to the size of the economy, accounting for less than 0.1% of gross domestic product by state and about 0.14% of wage and salary employment."

Frankly, I thought that Michigan's most thriving industry was rooting out the corruption in the Kilpatrick Administration and the Detroit Public School System. I seriously doubt any "cons [[i.e.Republicans) would want to see that stopped.

[Mikeg]

Well, Hollywood spent a lot less than the taxpayers gave them - from the Senate Report, "the State spent $37.5 million in FY 2008-09 to generate $21.1 million in private sector activity and will have spent $100.0 million in FY 2009-10 to generate $59.5 million in private sector activity." So taxpayers gave out $16.4 million in 2008-09 and $40.5 million in 2009-10.

And as for thriving industries - from the same report, "In Michigan, however, the sector is very small relative to the size of the economy, accounting for less than 0.1% of gross domestic product by state and about 0.14% of wage and salary employment."

Frankly, I thought that Michigan's most thriving industry was rooting out the corruption in the Kilpatrick Administration and the Detroit Public School System. I seriously doubt any "cons [[i.e.Republicans) would want to see that stopped.

Touche!

But I suspect they will keep coming back at you. The defenders of using the state's chronically unbalanced treasury to subsidize the film industry remind me of Monty Python's Black Knight defending his insignificant bridge.

[Packman41]

Besides all that, the entire idea of a subsidy for one special interest group is inherently unfair. I am reminded of this unfairness everytime I see this ad on TV:
http://www.youtube.com/watch?v=yl67TNDW-0Q

Now substitute the "new kid" for the movie industry and the "not-new kid" as the average taxpayer. Only difference from the ad is that they did not make the "not-new kid" pay for the "new kid's" ice cream - they just gave it to him. Imagine how mad the "not-new kid" would be if he did have to pay for it too.

Sound familiar?

[Wingnatic]

I wonder why he won't disclose where he got all his loot from last year ?
Tax records: Snyder's 2009 income was $8.1M
Paul Egan / Detroit News Lansing Bureau
Lansing — Rick Snyder's income in 2009 soared to $8.1 million, nearly seven times the $1.2 million he earned in 2008, newly released tax records show.
Snyder, the Republican candidate for governor, this week released to The Detroit News part of the 2009 individual tax return he filed with the Internal Revenue Service. The return shows Snyder paid $1.1 million in income taxes in 2009 and gave just over $188,000 to charity last year.

The Ann Arbor businessman reported a $7.8 million capital gain in 2009, but his campaign spokesman, Bill Nowling, would not disclose the specific source or sources of that gain.
"Rick has a diversified investment portfolio, and his capital gains come from that," Nowling said Wednesday.
Snyder faces Democratic Lansing Mayor Virg Bernero on Nov. 2.
Michigan Democratic Party Chairman Mark Brewer has called on Snyder to disclose how much he earned from the 2009 sale of medical device company HandyLab Inc. to Becton, Dickinson & Co. of New Jersey, which paid $275 million for the company in which Snyder's venture capital firm, Ardesta LLC, was an investor.
Snyder's campaign website had touted HandyLab as one of his Michigan success stories, with about 50 employees at its offices in Pittsfield Township.
But in October, Becton, Dickinson announced it would close HandyLab's Michigan operations next year and consolidate them with an operation in Maryland.

From The Detroit News: http://detnews.com/article/20101028/...#ixzz13h8q7232

[gdogslim]

Snyder wants to kill MOVIE incentives!Good, it is too much of a giveaway to BIG HOLLYWOOD CORPORATATIONS!Maybe 10-15% to bring in business might be better. not almost 1/2 of costs.

[Blarf]

All these dumb political commercials.

Is Snyder really going to make abortions illegal?

I'm really worried about that!