Governor Chris Christie is riling all the right folks. His latest enemy is Hollywood. Christie, you see, killed a corporate welfare tax break for film production, and now he’s battling the legislature’s effort to reinstate it.
Josh Barro has a solid piece on this topic at Real Clear Markets. Here’s his conclusion:
We are in a film subsidy bubble, and states that trail Michigan and New York would be unwise to bid high enough to win film productions back. Instead, states should foster economic development by improving their infrastructure, human capital, and tax and regulatory environment. Or if they’re going to offer incentives to specific industries, they should at least pick less crowded fields than film.
Meanwhile, their residents should sit back, watch Law & Order: SVU, and be thankful they didn’t pay for 35% of it without even getting profit participation. No, those suckers are New York taxpayers like me, who will fork over $2.1 billion over the next five years to subsidize film and TV productions. Essentially, I bought you movie tickets. You’re welcome.