Jennifer, Jennifer, Jennifer---
Are you still so star struck that you just can't, or won't, recognize what it is costing Michigan to bribe the movie makers to come to Michigan? Is Jeff Daniels that charismatic?
Can you spell pie-in-the-sky? If you give a 42% tax credit against production costs, not on taxes paid, you are giving them a gift that keeps on giving and giving and giving. The numbers quoted thus far are $1 million this year and by the end of 2010 it will grow to $200 million? That can't be, can it? Didn't anyone sit down and figure out what would happen if the film makers took them up on it?
We're told that tax benefits apply to studios who build permanent production facilities in the state. Just grabbing a figure out of the air, if someone makes a capital investment in buildings which might cost $10 million for anyone else, a tax savings will only cost them a portion of that? And what would stop them from building a state of the art facility and selling it for, oh, say...70 cents on the dollar. A real bargain for the buyer and a nice profit for the movie company.
Or, how about the up front tax credits being given to the auto industry restructuring? With a $1.6 billion budget deficit, how does the Legislature and the Governor plan to cover the gaps? Remember the old shell game con? Do your legs hurt from being pulled by the Lansing gang? Wonder how many legislators think they can explain this mess...........
I'm sure they are practicing double talk as we speak.