Michigan’s refundable film credits unaffordable, says Sen. Cassis
January 29, 2010

LANSING — As the state faces a $1.6 billion state budget deficit for 2011, the Michigan Film Office is preparing to give filmmaker Michael Moore up to $1 million in refundable credits, which a recent Tax Foundation report concluded were out of control, said state Sen. Nancy Cassis.

“Michigan’s film credits are simply unaffordable,” said Cassis, R-Novi. “Continuing to cover up to 42 percent of a film’s in-state production expenses is estimated to cost taxpayers $120 million in 2011. When we are already facing one of the toughest budget years in Michigan’s history, these refundable credits are too generous and must be restructured.”

Moore’s documentary, “Capitalism: A Love Story” was approved for up to $1 million in film subsidies and producers recently submitted paperwork to receive the credits.

Mackinac Center Fiscal Policy Director Michael LaFaive recently said, “While we don’t blame Mr. Moore and his production team for taking what is offered, it’s striking that a movie focused on the inequities of granting taxpayer dollars to private enterprise would apply for and receive taxpayer-funded incentives.”

At a July 2008 forum in Traverse City, Moore was critical of the film credit program, saying, “They (filmmakers) play one state against another, and so they get all this free cash when they’re making billions already in profits. What’s the thinking behind that?”

Cassis said, “The hypocrisy of Michael Moore is stunning. On one day he criticized the film giveaways and then later asked for a $1 million handout of his own. We are supposed to be spurring economic growth, but we’re giving taxpayer money to a film that trashes our economic system. How responsible is this?”

The recent study by the Tax Foundation, a nonpartisan research organization, concluded that film incentives fail to spur economic growth or raise tax revenues. The report’s author said, “Motion picture incentives are often touted as ‘job-creating’ programs, but they create mostly temporary positions with limited upward mobility.”

Cassis added, “This is a modern version of robbing Peter to pay Paul. Instead of giving checks to Hollywood producers, I support our local small businesses that are forced to carry the unfair burden of high taxes to subsidize the refundable credits.”

The lawmaker said, “Local businesses create more than 70 percent of Michigan jobs – good, permanent jobs for working families. We should be helping them succeed. That is why I have been a critic of the refundable film credits from the very beginning and will continue my efforts to reform the credits – not just a ‘cotton-candy’ temporary fix – but restructuring them into a form we can afford and that places an emphasis on producing sustainable, long-term jobs.”