PrintFebruary 6, 2011
A Hollywood Ending
It appears that the growing economic crises the states are facing are concentrating politicians' minds wonderfully. In particular, a number of states seem to be awakening to the fact that tax subsidization of businesses in the hope of increased jobs and revenues rarely if ever returns benefits that justify the costs. Two recent stories illustrate this. Both stories concern an industry that has proven especially seductive -- to wit, the entertainment industry. First is the report from late last year that states are now beginning to cut back on the subsidies. Michigan, for example, last year lured the producers of a prime-time show to film in Michigan. The show, "Detroit 1-8-7," certainly did bring some publicity to that benighted city. But at what cost? The state gave the show's producers a combination of tax credits, low-interest loans, and outright subsidies amounting to $193,000 for every one of the measly 355 full-time jobs...(Read Full Article)
