Spending on film tax credits would pay tuition at LSU for 70,000 students - Page 3 - TigerDroppings.com

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shawnlsu
LSU Fan
Member since Nov 2011
6344 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


So what you are saying is that none of the state funds that are "paid" to the film industry comes back to the state in the form of taxes paid by employees' income or sales taxes and the businesses that support the industry also pay no taxes back to the state.





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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
296502 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

This study from 2008-2010 said the return on investment is $5.71 for every state dollar spent.

without reading it, i bet it uses bull shite concepts like multipliers...






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I B Freeman
Member since Oct 2009
5508 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

So where would all this tax revenue that we are missing out on come from if the movie industry was not filming here?


People that owe taxes are not paying taxes because they have bought these credits from film tax makers.

I have already explained how we would be much better off if we let the film industry. We could pay every person employed by the film industry $25000 to move and be ahead.






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
296502 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

the amount of spend in Louisiana increased by 30 percent from 2008-2010. LED estimates that
production expenditures occurring in Louisiana reached $474.2 million in 2008; $361.5 million in 2009; and an estimated $674.1 million in 2010


quote:

These expenditures produced an estimated
annual total economic impact – also known as economic output or economic benefit – in Louisiana of approximately $812 million in 2008, $593 million in 2009, and $1.1 billion in 2010.


YUP!






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
296502 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

So what you are saying is that none of the state funds that are "paid" to the film industry comes back to the state in the form of taxes paid by employees' income or sales taxes and the businesses that support the industry also pay no taxes back to the state.

theoretically this is the argument

i used to argue with the OP but the way our state handles the credits is shitty and almost assuredly a drain on the budget






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La Place Mike
LSU Fan
West Florida Republic
Member since Jan 2004
16187 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

I have already explained how we would be much better off if we let the film industry. We could pay every person employed by the film industry $25000 to move and be ahead.
Where would te money come from?






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
296502 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

Where would te money come from?

where does the money to pay 85% of the tax credits we offer them come from?






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I B Freeman
Member since Oct 2009
5508 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

economic output or economic benefit – in Louisiana of approximately $812 million in 2008, $593 million in 2009, and $1.1 billion in 2010.


Which is NOTHING compared to entire economic output of the state but the subsidy is HUGE to get that output.

Consider this if they did do a billion in economic output and it was ALL taxable (it would not be) it would generate only about $70 million in state income tax while costing us $250 million.






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BBONDS25
LSU Fan
Member since Mar 2008
16339 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


Can you provide some numbers with your lecture?





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I B Freeman
Member since Oct 2009
5508 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

quote:
Where would te money come from?

where does the money to pay 85% of the tax credits we offer them come from?


Most of the time they can sell them to private parties for more than 85% and the state does not have to buy them. For example Exxon may owe $10 million in state income taxes they will certainly be glad to pay a film operator $9.5 million for his $10 million in credits. See how it never gets in the budget??






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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
10383 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

the way our state handles the credits is shitty and almost assuredly a drain on the budget



So what is LDR doing here, taking in the money and then sending back the credit, instead of simply letting the industry pay the net?






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
296502 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

production expenditures occurring in Louisiana reached $474.2 million in 2008


quote:

estimated annual total economic impact – also known as economic output or economic benefit – in Louisiana of approximately $812 million in 2008


this makes no sense. if they spend $474.2M then that's the economic impact...unless we assume that the film industry employees chose to spend $350M of their savings in one year here






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davesdawgs
Georgia Fan
Georgia - Class of '75
Member since Oct 2008
17272 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


Small potatoes but multiply it times thousands of liberal giveaways and you have significant dollars. Heck, considering the way they spent the stimulus money they would have been better off just giving 100k to every head of household.





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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
296502 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

So what is LDR doing here, taking in the money and then sending back the credit, instead of simply letting the industry pay the net?

there are 2 systems

1. sell credits to other industries that have net profits so their tax revenue is decreased

2. sell credits back to LA for 85% of the value.


quote:

Tax credits may be used to offset income tax liability in Louisiana (corporate or personal), sold back to the State for 85% face value, or brokered on the open market.



LINK






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GetBackToWork
LSU Fan
Member since Dec 2007
1061 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


It is clear few understand how this works. Additionally, those multipliers do not demonstrate a return of nearly 6 to 1 in tax revenue.

The state program says that it will offer 30 cents for every dollar of approved spending. This is no different than the state paying 30 cents for every dollar of a house construction or say operating a car dealership - aside from any differences in leftover assets from the said activity.

If this is so great, why not have the state go into the film business directly and underwrite it all? There would be a lot of jobs and economic activity. Taxes would surely be generated. In fact, let's just have the government subsidize all business.

There has to a strategy and purpose for subsidies. You spend a portion to capture something that otherwise would not develop. The subsidy should tip it over, not guarantee. It should not be permanent. It should pay off.






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Mike da Tigah
St. Denham Rougeville
Member since Feb 2005
41259 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

What is the multiplier impact of 71469 college educated citizens??



Ewwww, I know....

More devalued college degrees?


You people act as if you're entitled to 1) a college education, and 2) someone to pay for it on your behalf.





This post was edited on 4/27 at 10:12 am


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I B Freeman
Member since Oct 2009
5508 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

Can you provide some numbers with your lecture?


It is simple math and easy to understand. Here is what you need to know.

1) the state will issue transferrable tax credits for 30% of a film productions expenses (35% if they are salaries of Louisiana residents). All expenses are eligible.

2) the state will redeem these credits at 85% cash. There has been a brokerage industry arise from this and most of the credits are actually sold to other taxpayers who have Louisiana tax liabilities.

You can go to the Louisiana Film tax website and read it for yourself.

Several states have fallen for this crap as even the legislators are so dumb to think this is like a more traditional economic development program. Several have also seen the light and are turning them back.

If you want to see advocates of these credits back up just ask them if they would support making them non transferrable. That way the owners of the film production company would have to generate taxes to use them. They all scream when that comes up and all that spin they put on economic out put goes out the window. They have powerful, rich lobbyist.






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shutterspeed
Southern Miss Fan
Da Sipp
Member since May 2007
34422 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


I'm involved in a film project currently making application for the LA tax credits. We've already been approved for up to $500k in Mississippi tax rebates.

I'm genuinely interested in this issue, and I'll try to shed some light on my first-hand experience after the fact.






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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
10383 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

quote:
Tax credits may be used to offset income tax liability in Louisiana (corporate or personal), sold back to the State for 85% face value, or brokered on the open market.



Ah, a bureaucratic pretzel system.

My system is simple: Stop picking winners and losers and give every business the same tax break.






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I B Freeman
Member since Oct 2009
5508 posts

re: Spending on film tax credits would pay tuition at LSU for 70,000 students


quote:

Ewwww, I know....

More devalued college degrees?


You people act as if you're entitled to 1) a college education, and 2) someone to pay for it on your behalf.



You are missing the point. No one is advocating giving 70000 people free tuition.






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