Why is Obama extending tax cuts to his Hollywood backers?

[LWW]

Is anyone really surprised by this?

"The Senate passed legislation meant to end the "fiscal cliff" crisis in the wee hours of the morning. And it seems Hollywood's rigorous backing of President Barack Obama and his Democrat peers in the waning months of 2012 paid off.
Section 317 of the freshly approved legislation includes an extension for "special expensing rules for certain film and television productions." Congress first enacted production tax incentives favorable to the domestic entertainment industry in 2004, and extended them in 2008, but the deal was meant to expire in 2011.

The fiscal cliff deal extends the tax incentives through 2013--even as payroll taxes rise on ordinary Americans.
The original tax incentive applied to productions costing less than $15 million to make ($20 million in low-income areas). The 2008 extension applies to all films, up to a deduction of $15 million (or $20 million in low-income areas). The incentive is especially generous to television series; it applies to each TV episode.

Hollywood players routinely beg the government to raise their taxes so they can pay their "fair share."
Yet the industry moves new productions to places where existing tax breaks help its bottom line. That means plenty of shows and films are shot in states like New Mexico, which feature highly favorable tax rates, as well as destinations north of the border with similar perks.

Now Hollywood has used its clout to ensure that its generous tax incentives will continue in a time of fiscal crisis."

http://www.breitbart.com/Big-Hollywo...e-fiscal-cliff

[Qtec]

WASHINGTON, Jan 1 (Reuters) - The U.S. Senate packed an eclectic mix of handouts and takebacks into its last-minute deal to avoid the "fiscal cliff," including a measure to repeal part of President Barack Obama's signature healthcare overhaul and a string of special interest tax breaks.

At the center of the 157-page bill adopted early Tuesday are provisions to raise taxes on the wealthiest households and to make permanent Bush-era tax cuts for the middle class. The bill now goes to the Republican-controlled House of Representatives.

But senators also extended higher rum excise taxes to Puerto Rico and the U.S. Virgin Islands and provided tax breaks to a wide range of other groups and interests, including motorsports entertainment complexes and mine rescue teams.

Among the other sweeteners:

* special expensing rules for certain film and TV productions

* tax-exempt financing for New York Liberty Zone, an area around the site of the World Trade Center.

* extension of American Samoa economic development credit

Also tucked in the bill, known as the American Taxpayer Relief Act of 2012, are measures to avert the so-called "dairy cliff" - a steep increase in milk prices that would otherwise take place this year.

The measures would extend farm subsidy programs and prevent dairy subsidies from reverting to 1949 levels, which would have meant retail milk prices could have doubled to about $7 per gallon.

Are you and Breitbart now advocating for higher taxes on businesses?


Q

[Qtec]

Now Hollywood has used its clout to ensure that its generous tax incentives will continue in a time of fiscal crisis."

Also from Breitbart.

The "fiscal cliff" deal reached by the Senate and the White House on New Year's Eve, and passed in legislative form by the Senate early New Year's Day, includes many giveaways to special interests--including an extension of a perk enjoyed by "motorsports entertainment complexes" otherwise known as the "NASCAR tax credit."

The provision, under section 168(i)(15) of the federal tax code, allows speedways to write off their costs over seven years. Typically, such expensing occurs over a much longer period of time, from 15 to 39 years. The cost of the NASCAR tax credit to taxpayers has been estimated at some $40 million--over and above any tax incentives provided by state and local authorities. And..........?????

Hollywood films also enjoy a tax incentive extension in the "fiscal cliff" deal. The 157-page bill may grow yet larger--and more lucrative for special interests--as the House adds amendments.

Notice the clear double standard here. Breitbart condemns Hollywood but gives NASCAR a pass.

Q

[LWW]

Are you and Breitbart now advocating for higher taxes on businesses?


Q

I'm advocating that the cabal not be spoon fed their "OPINION" fora change ... but, I know, I'm holding the bar too high.

[LWW]

Also from Breitbart.



Notice the clear double standard here. Breitbart condemns Hollywood but gives NASCAR a pass.

Q

Why do you feel the need to lie about this?

What's that?

You are only doing what dear leader demands of you?

But ... I already knew that.

[Soflasnapper]

The fiscal cliff deal extends the tax incentives through 2013--even as payroll taxes rise on ordinary Americans.

Payroll taxes are the same after this 'rise' as they have been since about '86-- 6.2%.

The way it looks to me is that there isn't actually ANY tax cut for movie producers, but a timing shift. They'd had been able to fully deduct these expenses in any case. The difference is the time frame over which the deductions can be taken.

Lastly, please show any evidence that Obama authored or even insisted on this part of the deal, rather than accepting this as something the House or Senate demanded to get the deal. Clearly, Obama has not gotten all of what he asked for, and he has enjoyed no ability to dictate terms (hence the detractors from his left on this deal, who are miffed that he didn't get more of what he'd asked for).