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State and Local Government / Transparency

Do Tax Credits Pay for Themselves?

By Clovis Ouangraoua on May 15, 2009

Interesting article on tax credits for movie producers in the St. Louis Business Journal. It describes how tax credits for filmmaking are not in the long run very beneficial to the cities offering them. It portrays the recent stay of George Clooney for his movie Up in the Air, scheduled for release some time next fall, and points out that although Hollywood producers often get deals from cities, the short term economic activity that such productions generate may not be worth the cost.

The online copy of this article is truncated and only available to paying subscribers. But, for those of you who received a print copy this morning, I encourage you to browse through it. It’s on page 45.

Also, be sure to read the Show-Me Institute’s three previous commentaries about why using tax credits to promote economic growth is a recipe for economic stagnation.

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Clovis Ouangraoua

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