The third live-action "Transformers" movie hit theaters this week and is sure to have a decent opening. Regardless of whether any Michigan resident chooses to watch it or not, as a taxpayer, they’ve already been forced to support it. That’s why Michigan residents should ask for a discount when purchasing their tickets.

Michigan offers qualified and approved film productions refundable tax credits based on how much they spend in the state to make the movie. Since the tax credit is refundable and has little to do with the company’s tax liability, it is effectively a subsidy check from the state treasury. According to the Michigan Film Office press release, "Transformers" received $6.1 million in refundable tax credits from the state.

While this is a simplistic analysis, counting each person’s share can be done just by dividing the total credit by the number of Michigan individual income tax returns. The state treasurer reports that there were 4.5 million individual income tax returns, making each taxpayer’s share $1.36.

It’s certainly not the theater’s fault that the production company receives an incentive, or even the film producer’s fault for taking advantage of credits authorized by state law. This policy is nonetheless unfair to taxpayers whose own expenses are not looked upon so favorably by Lansing. Asking for a $1.36 discount at the ticket counter ought to be the least Michigan movie watchers should do. Another option is to make it clear to state legislators that the Michigan Film Incentive should be eliminated.

Stay Engaged

Receive our weekly emails!

~~~~~

See also:

Michigan Capitol Confidential Coverage of the Michigan Film Incentive Program

State Subsidies for Hollywood Dying in Iowa and Drawing Fire In Missouri and Michigan

Hollywood Battles Michigan's New Budget Chief

Cost to Replace Lost Jobs with Michigan Film Subsidies: $39.4 Billion

Firefighters or Mitch Albom's Movie Subsidy?

~~~~~

Related Articles:

Worker’s Choice: Freeing Unions and Workers From Forced Representation

How Pensions Are Bankrupting Cities and States and How to Fix It

Study: $15-An-Hour Minimum Wage Would Kill 281,000 Michigan Jobs

Michigan and Ontario Governments Agree to Promote Crony Capitalism Together

Charter School-Prison Comparison Misses the Mark

August 26, 2016 MichiganVotes Weekly Roll Call Report

Stay Engaged

Simply enter your email below to receive our weekly email:

Facebook
Twitter

One day, a Detroit grocer didn't get his ice delivery, the next day, he decided to go into the ice making business. Thirty-five years later, U.S. Ice has become a Detroit success stories with plans to expand beyond the city's borders. The secret ingredient: service.

Related Sites