Editorial Board
Laura Misjak
Kate Polesnak
Lindsey Poisson
James Harrison
Keiara Tenant
Justin Harris
Mitten's grab for movie makers a slick move
In an effort to increase available jobs and give Michigan a quick economic boost, Gov. Jennifer Granholm signed legislation Monday that would make the state the most financially attractive to movie makers.
The bill would give film studios refundable credit for movies shot in the state. Studios could earn back 42 percent of production costs in Michigan. For example, if a studio shoots a $10 million movie, the state would write the studio a check for $4.2 million while earning $5.8 million in revenue.
In a time when the state currently faces a $1.75 billion deficit, unconventional ideas like this are a welcome effort.
Michigan’s unemployment rate of 7.2 percent is the highest in the country. Under the proposed legislation, thousands of new jobs could be opened for jobless Michiganians.
In Louisiana, incentive-based movie-making legislation already has been passed and the results are encouraging.
Granholm said Louisiana saw more than 18,000 new jobs and film production went up from $7 million to $350 million.
That’s a staggering increase.
If Michigan saw that sort of an increase, a sizable amount of the deficit could be reduced.
And the legislation is already having an effect. In an average year, the state receives about six movie scripts for potential production in Michigan. This year, the state has received more than 80.
And why wouldn’t film studios want to shoot in Michigan?
The Great Lakes state boasts not only the largest freshwater lakes in the world, but also has locations for city, wilderness and suburb settings.
If a studio does decide to shoot in Michigan, job openings beyond those of the production staff would affect local residents.
In the locations where the movie is shot, hotels, caterers and security services would see a financial boost, serving the film’s crew and tourists visiting the production location.
Between the increase in production spending, the increase in potential jobs and the economic stimulus for local businesses, this legislation is definitely worth a shot.
At this point, what does Michigan have to lose?
The best part about this legislation is even if movie makers don’t flock to Michigan, the state won’t lose a dime. It’s completely risk-free.
Even after raising taxes and reducing spending last year, the state is still in economic disarray.
If Michigan is going to get out of its current crisis, it’s going to take more ideas like this. It needs to employ ideas other states aren’t trying.
Only then can Michigan become appealing to businesses and people alike.
Published on Wednesday, April 9, 2008
Comments
The Grinch
04/10/08 @ 1:52am
“Only then can Michigan become appealing to businesses and people alike.” Only then will our economy avoid recession. Only then will gas prices go down. Only then will our roads be clean. Only then will our farms grow. Only then will hunger subsist. Only then will the sick be well. Only then will we be safe. Only then will we be free.
Only that nothing will be done.
Ben
04/10/08 @ 7:49am
Hmm, sounds like a big corporate subsidy to me. I thought we were supposed to hate those things? Or is that only when they apply to big oil or mortgage companies?
Bill Lumberg
04/10/08 @ 8:40am
Ben you are right on. Granholm raised taxes on Michiganders and Michigan businesses so that now she can give tax breaks to BIG Hollywood?! Great idea, tax small Michigan businesses out of business and give tax breaks to rich Hollywood producers, actors, and directors. They make millions upon millions and now they get more!
If this was any other industry Granholm and all the other liberals, “progressives”, and Democratics would be enraged about tax cuts for BIG corporations, but it is Hollywood liberals getting the tax breaks so I guess it is ok.
Joe
04/10/08 @ 9:46am
This is a really stupid economic plan. I’ve actually heard some lawmakers say this bill will turn Michigan into the “new Hollywood.” Give me a break! If people are somehow enticed to shoot in Michigan by this subsidy (which isn’t proven), the movie is not going to reflect Michigan. One of the arguments for this break to Hollywood was that Michigan would appear in movies, increasing exposure and enticing people to move or visit our state. Problem is that studios filming in Michigan will say they are somewhere else; for instance, the director of I-Robot (can’t remember his name) plans to shoot a movie in Detroit, but his plan is to “make Detroit look like New York.”
Besides, this plan will not help create many jobs in Michigan. Most movie studios bring in their own production teams and the few on-set jobs they might fill using local Michiganders will only be temporary. Once the movie has finished filming, the job will be gone.
I think there are many other economic reforms we could make that would make a much bigger impact.
I'm no economist but...
04/10/08 @ 9:46am
“For example, if a studio shoots a $10 million movie, the state would write the studio a check for $4.2 million while earning $5.8 million in revenue.”
Wouldn’t it be residents and in-state businesses that would earn $5.8 million? That would then generate income, sales, and other taxes for the state. Right? I’m no economist, but for this to make sense wouldn’t the state need to collect at least $4.2 million of the net $5.8 million spent by the movie producers from residents? Would the state tax the %42 reimbursement?
Can someone explain this to me, because I’d like to know and I don’t want to work for an answer.
SN Editors Need Help
04/10/08 @ 9:50am
“If Michigan is going to get out of its current crisis, it’s going to take more ideas like this. It needs to employ ideas other states aren’t trying.”
Wait… didn’t you say this earlier “In Louisiana, incentive-based movie-making legislation already has been passed.” You contradicted yourselves. We should try ideas other states aren’t trying like this idea… which we got from Louisiana.
beaumont
04/10/08 @ 10:05am
OOOHHH, I wanna be in the movies. Kin’ I play like I’m a cowboy? Oh, I keep forgetting the only thing the movies do anymore are cops, bad guys, lawyers, doctors, and once in awhile a heart warming story about digital animals. OOOHHH, kin’ I play a digital animal?
Want to join me?
04/10/08 @ 11:03am
I will start a movie company. The company will agree to pay me $1,000,000 for my directing skills. The company will get $420,000 from Michigan. As a employee of the company that now has 1,000,000 in debt, and about to be in bankruptcy I will settle with them for a mere $420,000 of the 1,000,000 I am owed.
Skeptical
04/10/08 @ 12:31pm
Let’s see – movies about MI are made in Toronto and Pittsburgh because MI (i.e. Detroit) is “too dumpy” to play itself.
The owners of Detroit’s Grand Central Terminal (where movie scenes were shot) stopped allowing filming due to safety questions.
The whole thing (straight from Jenny’s “State of the State”) is a heapin’ helpin’ of “so what” gesture politics…
beaumont
04/10/08 @ 1:26pm
Mr. Join: I will settle for leading man in your production company. With tax breaks, cost overruns, makeup, occasional tantrum and leaving the set I can do this for about 60K. Pretty cheap considering we can all skip town once the venture fails and still have the dough. Safer then robbing banks and not as damaging as a riot.
Fact-Based Initiatives
04/10/08 @ 2:10pm
The sad thing is, no matter what solution J-Grahm or any Michigan Democratic politician comes up with to our state’s woes, conservative people will deride it — often just because she’s from “the other side.”
It’s really sad our state/nation has gotten to the “us. vs. them” point.
So sad.
Bill Lumberg
04/10/08 @ 2:57pm
Fact-Based I could not agree more. It is a shame that Democrats vilify businesses such as BIG oil. Both Democrat presidential candidates and most Democrats think we need to collect more taxes from oil companies “wind fall profits”. Yet none of the Democrats complain when Granholm gives tax breaks to Hollywood as an attempt to boost the economy. Why is it that when Democrats give tax breaks to rich people it is good for the economy and when Republicans do it they’re in the pockets of BIG business? Who knows maybe if this works the Democrats will stop with the cries of “tax cuts for the rich” and understand that lower taxes benefit everyone and the partisan bickering will stop.
dude
04/10/08 @ 3:51pm
It does not take a rocket scientist to figure out that spending than you are taking in, with no plans of fixing the situation, is a recipe for disaster.
If this plan was a good idea, why the movie industry? Why not all industry? Why not every citizen? If you spend a dollar in Michigan we will give you 42 cents back? How long could this be supported before the tax rate was 42% + whatever % the government needed to operate, leaving everyone where they started?
dude
04/10/08 @ 3:59pm
It is a scam, make everyone marginally poorer so that we can lower unemployment and the politicians can say they have done something about the economy and get re-elected. You may as well take the money and hire people to clean the streets all day.
Or require that every privately owned elevator and escalator has a trained elevator/escalator operator controlling it, that way you don’t even have to raise taxes, you can hide the taxes in the prices of the products we buy. We could pass regulation after regulation requiring extra unneeded manual labor and solve this problem with out raising taxes! Now there is a plan!
Max
04/21/08 @ 8:36am
Last movie i saw on national tv,,,made in detroit…brothers 4 or something like that…made detroit look like a real piece of shit.
Realistic..no one after seeing this shit on national tv would ever come to Michigan. Blown Away. We dont need this crapola. No matter what tax deals. Good movies yes. LA LA Land Shit NO WAY.