Commentary
How Would You Spend an Extra $130?
Film incentive programs take from everyone to give to a few
In a recent interview with Michigan Capitol Confidential, Brandeis University economist Bob Tannenwald remarked that film incentives were a bad deal for taxpayers.
"Another way to look at that would be that a state might be getting only 50 cents or 75 cents value for each dollar per dollar of personal income created by the program for the state’s residents. A state might be better off just sending the checks out directly to its residents rather than creating the program."
With roughly $500 million offered in incentives from the start of the program to present, the state could have sent $130 checks to every household in Michigan. Add another $13 for each year state policymakers put $50 million of tax money in the film incentive budget.
How Would You Spend an Extra $130?
Film incentive programs take from everyone to give to a few
In a recent interview with Michigan Capitol Confidential, Brandeis University economist Bob Tannenwald remarked that film incentives were a bad deal for taxpayers.
"Another way to look at that would be that a state might be getting only 50 cents or 75 cents value for each dollar per dollar of personal income created by the program for the state’s residents. A state might be better off just sending the checks out directly to its residents rather than creating the program."
With roughly $500 million offered in incentives from the start of the program to present, the state could have sent $130 checks to every household in Michigan. Add another $13 for each year state policymakers put $50 million of tax money in the film incentive budget.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
More From CapCon
What Michigan can do with $500 million rather than giving it to Hollywood
Michigan bill revives film subsidies, adds cash giveaway for touting state in commercials
Michigan taxpayers funded artistic and financial flops in last film-subsidy effort