re: WSJ major opinion piece on film industry welfare--quotes Jindal

quote:

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This where you lose me. The state is not actually giving them money. The film industry is not paying taxes on goods and services. Is that correct?

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Those credit are coming off the revenue line of the state budget. They are not in the expenses as other expenditures are.

Yes the state is giving them money. How many times do I have to explain that???

Here is a simple example.

If you got credits like the film makers we would give you a tax credit for 30% of your food and electricity bill. Let's say that is $10000 this year. You would get $3000 in credits. Now let's say you have no taxable income as most of the film companies do not. You could then say to LED give me 85% of the credits in cash and they are obligated to give you $2550. You also have option to sell those credits to me at whatever I will pay you. I might pay you 95% so instead of me sending money to the state I send $2850 to you and send the credit to the state for my tax obligation.