Spending on film tax credits would pay tuition at LSU for 70,000 students - Page 4 - TigerDroppings.com

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I B Freeman
Member since Oct 2009
5275 posts

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


quote:

Ah, a bureaucratic pretzel system.

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


Exactly. No one should get this crazy tax break. It won't pay.






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Mike da Tigah
St. Denham Rougeville
Member since Feb 2005
41004 posts
 Online 

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


quote:

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


Horse shite. You did when you said tax credits could pay for 70k students to get a degree, and then the net benefit from college educated people who would almost certainly leave the state as they usually do, resulting in a zero net benefit because they can't find work, and so brings us back to creating jobs and industry in the state of Louisiana.







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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
292175 posts

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


quote:

Horse shite. You did when you said tax credits could pay for 70k students to get a degree

he said it could. he was giving perspective on spending for this program v. spending for another more familiar program






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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
9950 posts
 Online 

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


quote:

No one should get this crazy tax break


Actually I'm saying that everyone should get this tax break but in a simpler form.

I was for the abolition of the income tax. Too bad the marketing got botched.






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Mike da Tigah
St. Denham Rougeville
Member since Feb 2005
41004 posts
 Online 

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


quote:

he said it could. he was giving perspective on spending for this program v. spending for another more familiar program


And my perspective is centered around job creation for a state that loses its best and brightest at our expense already. We pay for their education, and they leave because the lack of industry in their fields. So it makes much more good sense to me to spend money on that which can keep people here than on educating other state's future residents.







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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
292175 posts

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


quote:

And my perspective is centered around job creation

keynesian!

quote:

best and brightest

the film industry isn't exactly the best industry to keep these people.







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EST
LSU Fan
Investigating
Member since Oct 2003
14347 posts

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


tax welfare? What is that?

I have no problem with a reduction in the tax rate for a business or individual. The government has too much money anyway.

LSU's funding issues are due to Louisiana's budget system - not the tax rate.






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
292175 posts

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


quote:

I have no problem with a reduction in the tax rate for a business or individual. The government has too much money anyway.

while it's crony capitalism, a deduction would do this. a credit isn't needed






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Taxing Authority
LSU Fan
Houston
Member since Feb 2010
22097 posts

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


quote:

Sort of puts into perspective what the film tax welfare advocates are taking from us.
No. It doesn't. It completely neglects ANY benefits. In general, I'm not a fan of the film credits. But this is "analysis" is oversimplified to the point of dishonesty.

quote:

What is the multiplier impact of 71469 college educated citizens??
Probably not that much. Assuming they all stay in-state... someone has to pay them. If you want to claim the second-order effects of 71469 college graduates... you should do the same with the second order effects of over $250 million spent in LA.

I think the credits are a losing proposition. But we need a much better analysis before drawing that conclusion.



This post was edited on 4/27 at 10:37 am


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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
14948 posts

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


Do you really think there are 70,000 additional high school graduates in Louisiana qualified and deserving of attending LSU, or some other state college/university? Do you think the colleges/universities would seek tuition increases due to 70,000 additional students forcing them to hire additional faculty, instructors, administrators and other personnel?





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TerryDawg03
Georgia Fan
The Deep South
Member since Dec 2012
1739 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??


What's the effect of giving away education versus requiring people to pay for it? Damn, sounds like Lib reasoning.






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Archie Bengal Bunker
Florida State Fan
UWF Fan
Member since Jun 2008
15164 posts

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


quote:

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.



But isn't the $1 billion in output helpful to the state's citizens, even if it isn't helping the state's budget? As a citizen of the state, I would be fine with paying $180 million to get $1 billion worth of business in my state. This is where you are neglting the added value:

quote:

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


That is $930,000,000 in someone's pocket. Business, citizens, someone. Seems like .9B is a good return on 180M.






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TerryDawg03
Georgia Fan
The Deep South
Member since Dec 2012
1739 posts

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


Interesting research on film tax credits from George Mason University: LINK





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dewster
Maryland Fan
Tennessee
Member since Aug 2006
8991 posts

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


We pay tuition for everyone in the state that wants to go to LSU anyways.

A loud group of people in the state would rather us pick winners and losers than reform the tax code. This is what Louisiana wants., apparently.



This post was edited on 4/27 at 12:08 pm


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I B Freeman
Member since Oct 2009
5275 posts

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


quote:

That is $930,000,000 in someone's pocket. Business, citizens, someone. Seems like .9B is a good return on 180M


Think about that logic just a minute and tell me if you still stand behind it.

Tell me if this is good then why it would not work to give it to every business? You will quickly understand why it is STUPID when you try to do that math.






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I B Freeman
Member since Oct 2009
5275 posts

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


quote:

Actually I'm saying that everyone should get this tax break but in a simpler form


Work the math on that a little True and you will see why the whole thing is stupid.

If the corporate income tax is 6 to 8% how would you give away 30% of expenses to every business?? How can we justify giving it to any business is what the whole thread is about.

The people who support this are one of two groups:

1) profiteers of the credits
2) slow in math folks who buy into the industry's spin

No reasonable person knowledgable of the actual process can make the argument they are good for Louisiana taxpayers.



This post was edited on 4/27 at 12:24 pm


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Archie Bengal Bunker
Florida State Fan
UWF Fan
Member since Jun 2008
15164 posts

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


quote:

Think about that logic just a minute and tell me if you still stand behind it.


A. Ok, we can give every business $180 million. OR

B. We can spend that SAME $180 million and give EVERY BUSINESS $930,000,000 MILLION.



I think I am still taking B. I'm no logic expert, but I think splitting $930 MILLION is better than splitting $180 million.



This post was edited on 4/27 at 1:49 pm


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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
292175 posts

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


if they did a billion in business it would be a possible argument, but it's only like $450M and not all of that is LA economic activity. a good portion of that is out of state salary that isn't spent here





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I B Freeman
Member since Oct 2009
5275 posts

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


quote:

A. Ok, we can give every business $180 million. OR

B. We can spend that SAME $180 million and give EVERY BUSINESS $930,000,000 MILLION.



I think I am still taking B. I'm no logic expert, but I think splitting $930 MILLION is better than splitting $180 million.


I don't think you understand what you seem to be saying. We are giving away cold cash and the proponents are justifying it by pointing to "economic activity". Your average Wal Mart store generates about $80 million in economic activity. It is not profit. They have the cost of goods in that economic activity. They have the cost of operating the store in that. At the end of the day they may have $1 million in profit that will be subject to tax that we would give, at least partially, to the film people. So you can see that "economic activity" of a billion dollars is just not a lot.

So lets just follow this logic that giving this away is good and thus would be good for all business. It fails easily.

Let's just say there is a state somewhere that did this--give their businesses 30% of their expenses. Let's say that the entire revenues of all the businesses in this hypothetical state that gives what we give film makers to all their businesses is $100 billion. Let's pretend all their businesses are profitable and their net income subject to tax is 6%. So in this simple example they have 94% of revenues as expenses or $940,000,000. They would get if the state had it to pay $282,000,000 in tax credits. (30% of $940,000,000) They would generate only $60,000,000 in taxable income and if the tax rate was 6% they would pay $3.6 million in taxes.

So you see by this simple example there is no possible way the film tax credits work. If they were applied to every body in the hypothetical state the state would be upside down $279,000,000.

This is what happens in Louisiana with the film tax credits. We are upside down on them and we are by a very large amount.



This post was edited on 4/27 at 2:12 pm


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Archie Bengal Bunker
Florida State Fan
UWF Fan
Member since Jun 2008
15164 posts

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


quote:

So you see by this simple example there is no possible way the film tax credits work. If they were applied to every body in the hypothetical state the state would be upside down $279,000,000.


You are missing my point. The citizens are better off by having the $900 million that it would not have had otherwise. You are only looking form the state's budget perspective.

A. The govt takes no action. Its GDP is neutral.

B. The govt can spend $250M. That investment brings in $930M. Govt only gets back $70M. There is no question the govt lost $180M.

However, the government's residents benefited, even though the government is at a net loss. Where where is the $930M?







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