Thursday, March 25, 2010

Film Tax Credits

I dislike it when government chooses one industry for preferential treatment over another one. There are always unintended consequences. Giving preferential tax treatment to one industry is not a solid way to build an economy. The film industry is one the ones that is getting more than their fair of tax credits.

The film industry may have needed the tax credits to get started, but now they are established and should be able to hold there own. We have the crews, the studios, the post production and the scenery. If having the talent, infrastructure and location is not enough to sustain the business, what will it take?

For many years Vancouver film production relied on the cheap dollar to make the business work, the fear was that if the Canadian dollar rose the industry would leave. We have been at a 90 cent plus dollar for some time and the industry continues.

Will the business disappear if the tax credits are removed?

All over North America jurisdictions are offering better and better tax credits for the film industry. This is a race to the bottom and can not be won by anyone.

I am not sure what the impact would be to removing the tax credits, but if they had never been here we would have a more sustainable economy.

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