Monday, March 11, 2013

Cronyism: Big Hollywood

Here's an interesting article showing that subsidies used to attract movie production  typically end up costing state residents more than any additional revenue generated.  And what is really interesting in this instance is that both left and right-leaning think tanks agree.  Here's an informative quote from the liberal Louisiana Budget Project, commenting on their research findings:
Says the Project’s film tax credits study: “Unfortunately, the returns to the state on this investment, like many of the movies made here, have been a flop.” Using data from the Louisiana Economic Development Office, the report concludes that Louisiana taxpayers spend $7.29 for every $1 in revenue.
Read the entire article here.  (HT Crony Chronicles).