Tuesday, February 8, 2011

Another Film Tax Credit Success Endangered by GOP

Can Michigan afford to shed another 50 jobs? Michigan Republicans think so. As they prepare to kill off the Michigan film tax credit, the Detroit Free Press reports that a Livonia film studio, Maxsar, has already hired 50 people and plans to have 100 employees by the end of the year.

That's Michigan talent, not California talent. Fifty Michigan people who didn't have to move away from their families to get work, whose pay checks are being spent at Michigan businesses and to pay Michigan taxes.

But the supposedly business-friendly Republicans are preparing to drive those jobs away.

According to the Free Press:

"Like others in the industry, Martinez is waiting to see whether changes will be made to the film incentives. Rumors about the demise of the tax breaks have already caused headaches for his business, generating fear among employees and investors.

"'We cannot make the investment to buy (the buildings) until we know the tax credit is stable,' the Northville resident said. 'If they are going to change the law, tell us now. We need some stability.'

"If the tax breaks are eliminated or scaled back significantly, Martinez said, at least half the studio's 50 employees would leave Michigan."

So that's what happens when Republican rhetoric meets reality. Michigan jobs go elsewhere.

1 comment:

kevins said...

So, we spend $150 million of taxpayer money so that a venture "might" produce 25 jobs? That is your idea of good public policy.

If this is such a good idea, why don't taxpayers pick up the cost of 40 percent of the expenses for all Michigan businesses? If it's such a good idea, then why not let the entire economy grow?

Basically, what you are saying is that if you lower taxes enough, business will grow and create more jobs. That's actually a Republican argument. So are you now in favor of cutting taxes to grow the economy? Or is that favor reserved for friends of Granholm?