Michael Moore, Closet Tax-Cutting Supply-Sider?
Michael Moore says he is sick and tired of special tax breaks for corporations. Unless of course they happen to benefit him personally. Then he likes them. A lot.
According to Peter Schweizer in Tuesday's Investor's Business Daily:
Moore has found a tax break for corporations he actually likes. And his arguments in favor of it sound more like they're coming from a supply-sider than the populist he professes to be.
Michigan, where Moore lives, offers the most generous tax breaks and subsidies for film producers in the country. For every dollar you spend making a movie in Michigan, taxpayers will give you back 42 cents. Moore actually relocated his postproduction team from New York City to Michigan just to take advantage of these tax credits.
But Moore is not just a recipient of these tax credits. His hypocrisy goes deeper. As a member of the Michigan Film Office Advisory Council he has been a cheerleader for them. Appointed to the post by Gov. Jennifer Granholm in September 2008, Moore sees himself as an ambassador who will help bring the film business into the state.
And how does he profess to bring the film business to Michigan? By offering it tax breaks.
15 Comments:
Love it, he likes tax breaks when he gets them but wants everyone else to pay their fare share to help the country.
I agree. We should eliminate all corporate tax subsidies. Don't you agree?
As I believe Russel Long said don't tax me don't tax you tax the man behind the tree. There is a corollary My subsidy is good your subsidy is good but the guy behind the trees subsidy is waste. As Emerson said "A foolish consistency is the hobgoblin of little minds"
Most people like the statement and also its corollary. That is why cutting the budget is so hid since its me and you in the congress and the public is the fellow behind the tree.
When states compete by giving tax subsidies, there citizens lose out--everyone competes, and there can only be one winner.
This creates tax inequality among businesses.
The way to stop this in its tracks is to have the federal government tax any state tax incentive. No gain for any state in offering the incentive because the incentive payment will be taxed. States would have to compete on their overall tax rates. And there would be less corporate corruption and cronyism to get targeted tax cuts. If every state is deterred, there will be no federal revenue from this tax, as it should be.
Oops - it's a bit more complicated than that. As the Mackinac Center's Kathy Hoekstra explained on the Center's blog last week (http://www.mackinac.org/11086):
"It's apparently not a love story between filmmaker Michael Moore and Michigan's generous refundable tax subsidy for the movie industry. In his quote on the Michigan Messenger Web site, Moore is clearly not even enamored with it: 'If it's not good for Michigan, Michigan shouldn't do it.'
"In the following video clip Moore lobs some harsh criticism toward the film incentive. He questions the need for the program, 'when we're already broke here,' and says the program allows big corporations to 'play one state against the other.'
Why shouldn't states be able to compete against each other in giving out tax breaks? Saying that's bad smacks of wanting to stamp out "harmful tax competition". Tax competition keeps taxocrat states like CA, NY, NJ, and MA from raising their taxes even higher. Offshore tax havens are what keep the US and EU from from having taxes even higher than they already are.
What a typical hypocritical liberal. His actions are inconsistent with what he says. He could of course refuse to take the rebate/credit, but he won't while at the same time complaining about it.
I propose Moore take his film- making operations to China-- after he refunds me the money I spent to see "Capitalism." It would be interesting to see how far he gets criticizing the past actions of Chairman Mao the same way he likes to blame Presidents Reagan and Bush for our problems today.
Jack,
I might be inclined to believe what Moore said if not for what he did: move his company to Michigan.
Don't take the money and then whine about it.
Daydream: Michael Moore donates 5 million dollars to the Flint campus of the University of Michigan. The new name of the designated department will be The Michael Moore School of Economics! The only thing that would prevent this would be a bidding war by other donars -- what a great way to raise funs for the econ. dept.
What I think Anon meant was not to eliminate tax rate competition but that certain businesses should not get tax breaks over other businesses. Whatever tax rate is applied to one business should be applied to any other business with in the state.
I am thinking of making a donation in the name of Michael Moore to have the economics department at Flint named in honor of him as proposed by gettingrational. Moore doesn't have to be the donor to make this work. Hooyah.
Quick explanation:
==============================
RULES FOR THEE BUT NOT FOR ME.
==============================
The liberal position on everything.
Actually Michael Moore really does like capitalism a lot...
Love it.. Great post!
Post a Comment
<< Home