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Politics : Formerly About Advanced Micro Devices
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To: tejek who wrote (605301)3/30/2011 8:15:58 PM
From: TimF  Read Replies (1) of 1577591
 
Your taxing some companies and jobs and some rates, other at other rates. It becomes a matter of how much political pull you can generate or how well you can game the system, rather than how efficient your production is or how it meets the needs of consumers. Who's to say the movie jobs are better of the state than jobs in some other industry? Maybe some other industry should get tax breaks. Or better yet, you could just keep taxes and government interference generally low and have the investment decisions coming from individuals and corporations acting in response to market forces.

Even within the state, and only considering the state, such highly targeted tax benefits are extremely questionable. From a broader perspective they are even worse. To the extent they provide any benefit for MI they do so at the expense of other places.

How? If it wasn't for the tax credits, the film industry would never have used MI as a location.

Some movies might be made there without any targeted tax breaks, esp. if general tax rates are brought down, partially through shrinking government, and partially from throwing out all the targeted special rates, and any direct subsidies.

But lets assume that not a single movie would be made in MI if it wasn't for the targeted tax breaks. Might not some other industry might not move to MI instead if they could get the breaks? Why choose the movie industry? And if the the tax rates are so high that they drive away the industry completely then they are probably driving out other industries in whole or in part as well. Just cut rates, and stupid forms of government interference generally and you'll get a much better result.
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