Michigan Tax Incentive "gimmick"? Really?

I usually hold off on voicing my political thoughts on issues on the internet.  But recent news articles and reponses people have been making on the Michigan Film Tax Incentives have finally pushed me to speak my mind.

Anyone who knew me several years back, knows that I didn't support the tax incentives.  Recently, in the last few months I have changed my mind.  I was wrong.  Rick Snyder is too.

Rick Snyder, who's running for Michigan Governor,  made a very blunt and aragant statement of calling the tax incentives "dumb" and a "gimmick".  That statement is itself a gimmick.

First, to make that statement is to insinuate that all the Democrats and Republicans who voted for it (which was everyone in the state senate, except some woman from Novi) are dumb.  Nice going there Rick.  Just tell your fellow Republicans they're dumb.... especially Rep. Huizenga.

Second, anyone who understands politics of the last couple decades figures out that what candidates do is create easily quotable "sound bytes".  That statement is a sound byte.  And an extremely opinionated one designed to stir up his supporters (A.K.A. - The Teaparty).  It's no different than John Kerry dropping the "F-word" dozens of times.  No real substance, just a lot of hype and reaction.

For me, as an independent voter, when I see someone dropping blatantly arrogant and opinionated sound bytes like this what they're dong is a slight-of-hand.  They are distracting you from the main focus by making you pay attention to something else.  Truth is, he doesn't have a plan on how to replace what the tax incentive was creating.  $300-$500 million dollars was spent in the private sector per year in the two years that it has existed.  (The reason I know he doesn't have a plan is, that if he did, he'd be focusing on that, not saying it's "dumb".)

Michigan citizens had been complaining to the present governor that she needed to create jobs and diversifying the economy.  Manufacturing is going the way of the Dodo Bird in this country.  Why?  Because the Asian countries have cheaper labor.  There will always be cheaper labor some where else.  Give all the tax incentives you want, the manufacturing companies won't be running our way.  There might be a few hundred jobs added,  but not a huge amount.

Plus, not everyone wants to work in an assembly line.  Many of us want to use our talents and brains to do something creative with ourselves.

The entertainment business, specially film, is the number one export out of America... besides jobs.  Avatar made $1 billion in the box office, Inception made $800 million.  No matter how hard the film business was hit by the recession they are doing much better than most industries around the world.  They are adjusting and adapting to the new economy... and one of those ways is to pursue states that offer tax incentives. 

A young lady by the name of Evangeline Lilly, started out as a extra in British Columbia.  Then she was noticed by an agent and eventually auditioned for a role in a new show that was named LOST... remember the character "Kate"?

Remember, she was in British Columbia... not L.A.  Why would she have gotten discovered there?  Because British Columbia had a tax incentive that drew in studios from L.A.  After a while they built sound stages and other facilities there related to the film business.  Then B.C. lowered the amount of the incentive but continued to draw in film business because of the original tax incentives and facilities.

My major issue is the private sector.  The number #1 thing on voters minds is simply 3 things: jobs, jobs, jobs.  Michigan has the highest unemployment numbers in the country.  People wanted results.  A tax incentive for film production gets money into the private sector the fastest.

Now people can debate whether  seeing $300-$500 in the private sector is worth rebating 42% back from the state budget, but they shouldn't debate there are jobs.  (Honestly, if the 42% was there the politicans would just spend it anyways).  There are tons of Republicans that claim that "no one is getting hired, it's all out-of-staters".  Then, as I saw in a freep.com article, someone commented that they made $50,000 working on Red Dawn as a crew person from within Michigan...

You know what response that commenter got?  Republicans telling him, "nice you got a job, but I don't want to have to subsidize your income".  Wait a second, so it would be better if this person was on extended unemployment.... or even better, if they ended up getting assistance from the state?   You forget, he was working his tale off on a film production, building his resume, and pursuing a career!  A career, may I point out, where you can be in a crew union and make around $27 per hour.  Yes, $27, per hour, with time and a half and double time as standard operating procedures.  They pay better in the film unions that the UAW does right now.

First they said that it's not creating real jobs, then when people come forward and state they made a great income on it, then the same people say, "I don't care".  It's like you can't win with those people.

My point is this:  GM and Chrysler both laid of a ton of people over the decade.  Many other major corporations did the same thing in Michigan.  So when $300-$500 million was spent in the private sector in the last year, and the vendors paid more tax money at the end of the year, the Michigan government had more tax money.  There's a very good chance that the money paid in taxes by individuals and corporations involved in the film business help to make up for what was lacking from GM and Chrysler.  I wonder what the state budget would lack  if the incentives are pulled?  What would Snyder do to make up for the people who won't be working?  Does he have a plan for that?

What the tax incentives creates is opportunities and hope.

Making arrogant statements like "dumb" and "gimmick" is insulting to all of us in the film business, the people at the film office, and all the people in the State Senate that voted for it. 

I'm not supporting one candidate or another, I'm simply stating my position on the tax incentives.  The film tax incentives was the best thing that has happened to Michigan since the Big 3 Auto companies started decades ago.  To change it would be the worst mistake in decades!  Diversify or die... that's the choice the Michigan economy can't risk.