Anything Goes : L.A. Mayor Declares State of ‘Emergency’ As Movie, TV Production Flees Hollywood by Richard "RB" Botto

When you over Tax the Rich and small potential Investors these are the results they leave, the bleeding heart liberals and The Whore Politicians that want to over TAX and Over REGULATE will result in I'll go somewhere else to make Movies, The Solution: Cut the Capital Gains Tax to 4% Corporate Tax to 8% PERSONAL INCOME TOPS Rate to 15% - Business will Boom or California will be next in line to be DETROIT.

Too many states believe the glitter of Hollywood celebrity will rub off, however when a film's production ends, most all the jobs end too and the imported labor departs. Few of those incentive states are investing in permanent infrastructure which Los Angeles has in abundance. Read the other articles in this issue of Variety, you'll see examples of failures and corruption. Incentives are a bad business model where average citizens give their tax dollars in exchange for bragging rights.

Incentives are bad business models - your mixing Oranges & Apples together and trying to make sense of no sense, the average tax payer has nothing to do with the movie business, or any business. its a private transaction, it is these private transaction that determine the GDP and the economy doing well...

Trying not to sound biased, because I happen to work out of an incentive state, but tell that to the people actually being provided jobs. It may not be the best economic model, but it is providing relief for the people and businesses in those areas. I'm personally not for incentives either, but I can't argue with the results I've seen in job and mental health for my friends and colleagues.

Against Incentives, ok ! - How is it fair that Wholesalers can sell their products cheaper than Retailer's ? People that earn wages are not equal to business investors when it comes to paying taxes, INVESTORS take a risk of losing their investment, example: Wage earners are Guaranteed to get paid for their work, A Major Investor in a Movie creates 100's of jobs, WHO'S MORE IMPORTANT ?? Who's your Daddy ? , The Investor is not Guarantee to BREAK EVEN, The Rich don't have to Invest, but the Wage earner has to work, without TAX BREAKS & INCENTIVES Don't have to Make Movies in Hollywood General Motors was the King of Car Manufacturing NOT ANY MORE and they ain't coming back, once you fall behind you stay behind ONLY HOPE CUT THE TAXES, People in California won't be able to get on Welfare if this keeps up...

Ebony, without your state's incentives those locals wouldn't be employed. The result of incentives was that NC lured the jobs away from CA. No net increase in product or revenue was created in the industry at large. However, Anglenos have become unemployed at the expense of your states government. Is stealing jobs fair?

I do...And I like it! Debate is healthy. Intelligent debate is even better.

Just a query folks.. How many Film Commissions in the different states have closed?..

Can I ask why?.. Can't just be the absence of the tax breaks.. Is it the economy?.. Or just stagnation of movie making in the heartland of the U.S.

Christ!.. Two people to run an office.. Oh yeah, that would have worked.. ( my backside)... Well I think I fall on the incentive side of the debate.. This side of the pond had the same issues, not so long ago.. But as I stated in another post, just last night in fact.. Our would be blow-hard politicians finally got there act together and brought back some of the very breaks, the Mayor of L.A. is hoping to get through.. Case in point!.. The British Film Industry hasn't been this strong in production and location facilities for a long time.. Not to mention our own film production has increased with all the benefits, the above stated has brought with it.. So I must agree with you on this point.. The revenue gathered, far out-weights, the breaks.. And!.. To add.. With the broadcasting to all and sundry of those breaks bu our film councils and commissions, comes the bait in the water for others companies to come and film.. I think someone should show them that in the Governor's mansion..

Sad to hear so many are going elsewhere.. Now!.. That is bad..

Why is it sad that Hollywood is No longer in control of the Creative Process ? for over a 100 years they determine who the players were "Technology is cheap enough to allow everyone to determine their own Destiny...

Being from Canada and actually taking part in the whole "run-away" Hollywood North production bananza -- especially between 2000-2003 when the Canadian dollar made it very attractive for producers to come North -- it should be noted that Hollywood is now a global entity and marketplace, and the infrastructure and crew provision and training this influx made here, was a very positive thing for Canada, especially, BC, Ontario and Nova Scotia. The lasting economic spin-offs continue and some provinces have duly committed themselves to supporting a film industry here. I realize that this takes bucks from the States, especially LA, but if you consider that Hollywood has been sweeping our talent for generations -- Mary Pickford, Faye Wray, Jack Warner, Mack Sennett, Sid Olcott, Louie B. Mayer, Walter Pigeon, Donald Sutherland, Jim Carey, John Candy, Jim Cameron -- just to name a few, then hey, maybe fair's fair. With the cost of production, I think movies should be made globally wherever the best incentives lie. I'll bet no one on this site knows that the first "sound" and "colour" picture was made in Nova Scotia in 1912 called "Evangeline" and utilized a recording device for dialogue provided by Alexander Graham Bell, who was living in Cape Breton, NS and that each frame of the Bolex-shot film was coloured by hand. The Nova Scotians were miles ahead of Hollywood and The Jazz Singer. Hollywood has always had a habit of counting Canadians out of film history -- of course, that goes for Russia's Eisenstein, France's the Lemiere brothers, and Hungary's Georg Pabst, to name just a few. Edison was a genius, but there were many others around the globe doing hard inventive work to make film what it is today. Lest we forget. If you do your homework, you can trace the first implementation of modern-day screenplay format back to Canadian director Sidney Olcott (Ben Hur, From The Manger To The Cross) , who developed his system of setting scenes up with INT. and EXT., timing the script, and many more screenplay formatting standards. Look Sidney Olcott up on Wikipedia and you'll discover some of his contributions. You'll even see mention of Charles Foster, who knew Sidney as a close friend and now lives here in Moncton. I have the privilege of counting Charles Foster, now 90, as a dear friend. And except for Dick Mason, who worked to preserve film history on the Warner Bros lot, I have not met anyone who knows more about film history than Charles Foster. I'm sorry, I didn't mean to go off on such a rant. But hey! if it wasn't for Edison trying to control his patent -- Griffith, Sennett and Pickford would never have run off from New York at the Biograph Company and discovered Hollywoodland in the first place.

LA is in California. The only thing good in California is the weather. Pending on where you are. I am a native so I can state that. The problem with Ca is the TAX on EVERTHING. Say you are an LLC the minute you sell something in CA. You owe 800. even if you sold it for a dollar. I know this as I had an LLC for two months and dissolved because of it. Porn with condoms. LOL! What's next Position Police? To much policing and policing for revenue they just waste. On a positive note, I am glad they are understanding that cops, realtors and homeowners do not make for a growing economy. Me? Off to Arizona. 7 film schools around. A decent sized home for 1980 prices. Low state income tax. CCW to protect myself. But it's hot! LOL!

Don't worry be happy. A thing that is on demand will always find a better place if the place where it exist does not fit it.

I know we're benefiting in Detroit.

True, Henry. Detroit has made a bit of a power move in this arena lately. Smart.

Here's an article from today Variety. http://shar.es/zI0fZ "Countries like South Africa, Hungary, the Czech Republic and Ireland continue to be welcoming to the biz, as even more nations enter the competition." All the incentives do is move spending from place to place. Your town will gain today but lose tomorrow. Will you still do the happy dance about hating LA, when your job goes to Hungary.

Don't understand the thoughts about jobs leaving LA when most of the casting still happens there and director can bring their own crew from there. I find it funny that California itself has film incentives but we aren't supposed to talk about that! http://www.film.ca.gov/Incentives.htm

Incentives are bad policy whether in California or other regions. They don't create jobs or new markets/buyers. They are a system where government through tax rebates help industries lower costs for specific niche companies gain. Other states and countries believe they will gain new industry infrastructure. But until more users/viewers/buyers of that product are created, the "incentive" doesn't build overall market equity. What does happen is that raw materials, parts and labor are shifted from one manufacturer to another. In CA incentives have only started as a way to combat existing job and business losses. The downsides to CA current "incentives" is there is overall statewide $100 million cap and projects for incentives are chosen by a lottery once a year. Read the page you linked to for the exact details.

I'm happy that SC finally offers incentives. TV series, like "Army Wives" and "Reckless" are helping the local economy (Charleston). Retail sales have increased, the companies provide opportunities for local actors and crew, and our area gets publicity that attracts tourists (who also help the economy). While the incentives do benefit select corporations, many other fully-taxed businesses benefit from the fact that these corporations buy goods and services locally.

Kristin, your comments reinforces my point. The 30% loss of California's TV/Film businesses has been transferred to a gain for North Carolina and other states. At the same time there have been no increase in consumption of traditional film and television products. No new consumers or new markets of media product has been created. What has happened is a shift in the locality of manufacturing. It's wonderful that Charleston is making opportunities for its local residents. But it comes as a loss to laborers and businesses in Los Angeles. When you look at the small companies and employees who are benefiting in Charleston, one needs to acknowledge that there are losses to the same types of businesses in another region. If TV/Film consumption increased because of states incentives, then we would all be happy. But sadly this is not the case. As was discussed in the original posting of the Variety magazine article, in Los Angeles people have lost work and they're unable to support their families and the homes they live in. It is not really fair that North Carolina's government-sponsored tax incentives should be used to poach businesses that have existed for nearly a century in Los Angeles. It is my belief that governments and tax incentives should be used to create new businesses and new products.

This just in from Deadline Hollywood: North Carolina Likely To End Its Production Incentive Program After 2014. Legislators are saying North Carolina would be better off cutting taxes across the board or giving incentives to manufacturers offering long-term jobs. “We spent $70 million on film incentives last year, and what else could we have done with that $70 million?” said Rep. Mike Hager, the GOP majority whip, told WSJ http://www.deadline.com/2013/08/north-carolina-to-end-its-procuction-inc...

Interesting, David. Thanks for sharing.

David, Charleston is in South Carolina and is a relative newbie in regard to tax incentives for the film industry. If people are losing their jobs in CA, shouldn't the voters in CA vote for representatives who will fight for California's film industry? Other states aren't "poaching" business--they are welcoming the disenfranchised. California's tax laws and draconian regulations have been anti-business for some time. Many businesses are fleeing the State for business-friendly, lower-tax States. The film industry is just one more industry, in a long line of businesses and industries, that are struggling to remain competitive in a State that has been taxing/spending its way into bankruptcy. When taxes and regulations become too onerous, entrepreneurs have to find greener pastures. You can't blame other States for welcoming them. Wasn't California largely settled by people who migrated there, mostly from Eastern States? California was once a wide-open Land of Opportunity. Maybe not so much, anymore.

David, Let me see if we can get out of the Twilight Zone with this example: Lets say David you have $100 to make a Movie, but it cost $300 to Make in California, South Carolina sez to you shoot your movie in our Home State for $75 dollars, and we'll ADD an Incentive by giving you 100 thousand feet of Kodak Film and have Use of a Panavision Camera for the first two weeks for Free,What would you do ? If you found a computer on sale at Best Buy's $200 Dollars Cheaper than your local Computer store, do you stay up all night worried about the store owners children unable to buy baby formula ?, Are you going to search the internet for a news articles to justify, Why You Must pay a HIGHER PRICE ?

Incentives come from Tax. The Gov't makes no money, has no revenue unless it takes it from someone else. Not that I would not take the rebate, just putting it into perspective. California is a High tax state that is NOT a good climate for business. Let's face it after the wrap party we all want to be in business,

Please read this report from the prestigious Center for Budget and Policy Priorities. It's an eye-opener: “The rapid spread of film tax subsidies across the country is a classic case of a race to the bottom. States would be better off maintaining vital public services and pursuing more cost-effective development strategies, such as investment in education, job training, and infrastructure." http://www.cbpp.org/cms/?fa=view&id=3326

It's not only tax. It's the anti-creativity attitude

How does this Report Help you as an Independent Film Producer Make a Movie ?