New Yorkers Funded Third of 'Wolf of Wall Street's' $100M Budget

Friday, 28 Feb 2014 02:45 PM

By Courtney Coren

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
"The Wolf of Wall Street" has been nominated for Best Picture, but it has already won one award – for Best Tax Break.

New York gives a 30 percent tax credit to film companies for movies filmed in the Empire State, which means that New Yorkers helped fund a third of "The Wolf of Wall Street's" $100 million budget, according to a study from the Manhattan Institute.

All nine Best Picture nominees benefited from tax breaks offered to film companies across the country, which states created as an incentive for movie companies to do businesses there.

The best incentives are in Louisiana, where filmmakers are given a 30 percent credit on production costs and a 5 percent payroll credit. While "12 Years a Slave" and "Dallas Buyers Club" were both filmed in the Bayou State, they had much smaller budgets and didn't have the savings of "Wolf."

While the argument for such tax breaks by their supporters is that they will help create jobs and increase tax revenue, this has not turned out to be the case.

"Data from several states find movie production incentives generate less than 30 cents for every lost dollar in tax revenue," the Manhattan Institute found.

The conservative think tank notes that this is a common problem with targeted tax breaks — they "routinely fail to deliver on the economic promises made by their proponents."

It is also an example of government choosing winners and losers, the group says, and any industry would be attracted to a state if it promised to pay for a third of its costs. And if states did offer such incentives to other industries, it wouldn't be sustainable.

But film is an especially bad industry to subsidize as the jobs it creates are temporary, and the workers are very specialized.

Connecticut, one of 37 states with tax incentives for the film industry, suspended its program in 2013 for two years after it became clear that it was hurting the state to spend the $140 million to attract filmmakers more than it was helping.


Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Chris Christie: I Will Not Stoke Ebola 'Hysteria'

Thursday, 23 Oct 2014 15:11 PM

During a Wednesday discussion of state preparedness procedures, New Jersey Gov. Chris Christie said his administration w . . .

W. African Travelers in US Told to Self-Monitor for Ebola

Thursday, 23 Oct 2014 14:11 PM

Responding to increasing pressure from the public and Congress, the Centers for Disease Control and Obama administration . . .

Conservative Group: ABC's Midterm Blackout Reeks of 'Liberal Bias'

Thursday, 23 Oct 2014 13:22 PM

A study by the conservative Media Research Center claims that ABC World News hasn't covered the midterm elections in two . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved