Film Tax Credits exceeded total collections of corp income tax in Louisiana | TigerDroppings.com

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I B Freeman
Member since Oct 2009
5456 posts

Film Tax Credits exceeded total collections of corp income tax in Louisiana


Many of you have argued that film tax credits increase the state's revenue.

Well it just is not true. Nothing is more telling than looking at total collections of corporate income taxes in Louisiana over the past few years. It is corporate taxes that the film tax credits are used for. Credit holders can sell them to people with obligations and let them use them or they can present them to the state for 85% cash redemption.

Here are the Louisiana Corporate Tax collections the last 5 years (thru 2011 when the film credits went over $200 million for the year)

07 $721 million
08 $747 million
09 $586 million
10 $435 million
11 $198 million

Now it doesn't take a rocket scientist to see the impact on tax collections of the film tax credits.

Nobody here likes smaller government more than me. I am glad we are cutting back BUT we should not be cutting back because we gave a very few corporate citizens HUNDREDS OF MILLONS of DOLLARS!! many of which are nothing but short lived LLC formed to milk us.



This post was edited on 2/1 at 3:43 pm



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MFn GIMP
LSU Fan
Owensboro, Kentucky
Member since Feb 2011
8451 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


quote:

Credit holders can sell them to people with obligations and let them use them or they can present them to the state for 85% cash redemption.

What a horrible idea.






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charlesmartinmike
LSU Fan
west texas
Member since Mar 2009
231 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


I've made a lot money from the film industry since it has come to LA. None from any credits the govt gave me, but quite possibly because the govt gave credits to those that employed my services. The way I see it, that money would be in the hands of the govt instead of me without the credits. Why do you love big govt and hate me?





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CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46292 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


I assume the tax credits are in part because the film industry getting the credits creates jobs and business for companies in Louisiana.

What happens when income taxes on income earned, sales taxes generated from the jobs created, sales and use taxes on the money spent in production, increased business (rentals, fees to locations, food, purchses, security companies), increases payroll, profits from the business involved with the film industry are considered?

I know several people getting jopbs in the film industry because of the credits, I see them working all over the city, I know people getting big bucks for the use of their property for locations, there may be some tightening up required but there is a significant benefit, even if you have a hard on for Jindal.






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doubleb
LSU Fan
Baton Rouge
Member since Aug 2006
6258 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


quote:

It is corporate taxes that the film tax credits are used for.


Are you positive?

I remember buying some tax credits and applying them to my personal tax returns.






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BBONDS25
LSU Fan
Member since Mar 2008
16147 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


Here we go again. How much revenue would there be with no film industry as opposed to with it?





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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


I am confused as to how you are connecting one with the other.

We are getting movie business because of the credits. We wouldn't be getting that business otherwise.

Just because of declining corporate tax doesn't prove that the tax credit is to blame.

I could say corporate revenue would have been 20 million less without the credit and boom, your supposition is gone.






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Beerinthepocket
LSU Fan
Dallas
Member since May 2011
573 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


You really are leaving out a ton of indirect tax revenue increases derived from the film industry being in Louisiana. Side note: I think we should be generating $0 from a corporate income tax.





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I B Freeman
Member since Oct 2009
5456 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


I think we should be 0 in corporate taxes too. That would be fair to all business but letting politicians pick and choose welfare winners and losers is unfair and simply immoral.

But let us look at all the taxes the state collects

sales tax same years

$2.802 billion-07
$2.883 billion-08
$2.800 billion-09
$2.465 billion-10
$2.670 billion-11

Individual Income tax
$3.116 billion 07
$3.242 billion 08
$3.005 billion 09
$2.240 billion 10
$2.387 billion 11

Now surely none of you naive film tax credit defenders are going to say that the credits add to petroleum, cigarette or alcohol tax collections or severance tax collections so I will not bore you with those numbers as they show essentially the same story.

Where is all this economic activity in any tax collection?? You boys need to point it out.

There is absolutely nothing in the tax collection numbers to say that by giving away over $200 million to the very few film tax credit companies has in any improved tax revenues for the State. A stupid, far fetch notion put out by hired guns of the profiteers of film tax welfare.

Before you even start trying to rationalize these numbers I will say that if you believe that taking a dollar from some other business and giving it to a film producer produces great benefit then you must explain how taking it away from another business does not produce great harm.

This is not one smidgen of evidence in the actual state tax collections to prove any of the wild claims film tax welfare proponents make.



This post was edited on 2/1 at 8:54 pm


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756
LSU Fan
Member since Sep 2004
9544 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


OP remind us not to hire you

You pull two pieces of data our of the bucket and use them as your proof

There are many pieces to this puzzle as some have noted in the thread

what is your agenda?







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pleading the fifth
Louisville Fan
Member since Feb 2006
1623 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


Wasn't this argument hashed out ad nauseum a few months back?





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junkfunky
LSU Fan
Member since Jan 2011
13849 posts
 Online 

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana




Where are you getting your information on the economy for the last 3-4 years? FYI it has kinda sucked.






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I B Freeman
Member since Oct 2009
5456 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


Yes hashed out several time but now we have numbers showing no increases in state revenues.

The proponents deal in guesses yet the state revenues do not show any positive impact of spending more even than the money we collect in all corporate income taxes on film tax welfare.

To hear the proponents talk we should have a huge increase in taxes resulting from this welfare. Can't see it.

One guy said the multiplier of this welfare should be at least 7. That would be $1.4 billion--hard to believe that crap isn't it.

It is unfair, ineffective welfare and that is all it is.






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I B Freeman
Member since Oct 2009
5456 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


quote:

Where are you getting your information on the economy for the last 3-4 years? FYI it has kinda sucked.


Are you saying that the film tax welfare only works in a good economy?






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junkfunky
LSU Fan
Member since Jan 2011
13849 posts
 Online 

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


quote:

The proponents deal in guesses yet the state revenues do not show any positive impact of spending more even than the money we collect in all corporate income taxes on film tax welfare.


Well since you're the one with the facts hook us up with a link to how much better our revenues would be without the tax credits.






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I B Freeman
Member since Oct 2009
5456 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


I wonder if we had given the film industry all of the corp income tax what would have happened to revenues?

If 30% of their expenses and subsidies on individual salaries up to $1 million are great then why not give them a 75% expense credit and pay 75% of actor salaries up to $10 million?






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junkfunky
LSU Fan
Member since Jan 2011
13849 posts
 Online 

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


quote:

Are you saying that the film tax welfare only works in a good economy?








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I B Freeman
Member since Oct 2009
5456 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


quote:

I've made a lot money from the film industry since it has come to LA. None from any credits the govt gave me, but quite possibly because the govt gave credits to those that employed my services. The way I see it, that money would be in the hands of the govt instead of me without the credits. Why do you love big govt and hate me?


the way I see it the state took money from me and gave it to you. Why do you hate me so that you would take their welfare they robbed taxes from me to pay??



This post was edited on 2/1 at 9:41 pm


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I B Freeman
Member since Oct 2009
5456 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


quote:

Well since you're the one with the facts hook us up with a link to how much better our revenues would be without the tax credits.


You are the one so sure they are a good thing for all of us instead of for the few tell us why we should like them.

You probably think they should take more from us to give to these special interest.






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I B Freeman
Member since Oct 2009
5456 posts

re: Film Tax Credits exceeded total collections of corp income tax in Louisiana


The economy would be better off if my share of the $200 million had stayed in my hands.





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