Like a rerun, the state keeps announcing big commitments from the TV and film industry ... firms drawn to Michigan apparently by the most extreme tax breaks imaginable. But why are these jobs so worthy?
I know I’ve raised this question before, but I still haven’t heard a decent answer.
On April 14, the governor’s office said a firm called Unity would create a $146 million studio complex “expected to initially create up to 121 new jobs, including 83 directly by the company.”
It goes on with the ususal boilerplate about thousands of jobs in the future and all. Maybe it will all work out that way. But how much is such a job worth?
State Sen. Nancy Cassis, R-Novi, and other Republicans have raised concerns about the state’s generosity to this particular industry. In a March 27 letter, Cassis, while noting she had backed almost all of the original film tax legislation, noted:
“I opposed House Bill 5841 (Public Act 77 of 2008), which provides for a 40-42% refundable credit on production expenditures. A refundable credit allows a production company to eliminate its tax liability and pay no taxes, while receiving the remainder of the credit as a check from the state’s general fund. When the bills were passed, the nonpartisan Senate Fiscal Agency stated that, “The bills will decrease State revenue, mostly to the General Fund, by an unknown and potentially significant amount.”
This is the odd circumstance of a GOP legislator arguing to a Democratic governor that tax breaks are too extensive.
Or maybe they are not extensive, enough ...
I’ve made the point before, I’ll make it again: If the film tax policy makes sense, it should apply to every job-creating endeavor. Why is film so special?
Today, Auto-Owners Insurance announced it has acquired land near its Delta Township HQ, probably to allow for more eventual expansion. (AO had been eying DeWitt as an expansion site.)
AO employs about 1,650 people in the Lansing area. It could employ more in the future. Should AO get a 40 percent off coupon from the state for its land purchase? If not, why not?
Of course, someone has to pay taxes to keep the Legislature and governor’s office open. I’m not thrilled to do so, but I understand the need for public services.
So why isn’t the film industry part of that “someone”?
