An Up-Side of Taxes in Hollywood?

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The Up-Side of Taxes in Hollywood
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Happy Tax Day? :=)

I don’t know anyone who is actually “happy” about tax day… or about taxes, period.

Yet, we “Give back to Caesar what is Caesar’s and to God what is God’s.” Mark 12:13-17

We understand why we have taxes, but gosh, sometimes I wonder, “Does the government really need 35% of my residual checks?”

The Silver Lining

We look for a silver lining and in Hollywood’s case, we find it in films like this year’s Academy Awarders Silver Linings Playbook, Argo, and Lincoln (above).

These are 3 of the 5 movies (out of 9 Best Picture nominees) that received major tax incentives that helped them film. Forbes reports “Actor-director Ben Affleck and producer George Clooney’s film, Argo, received $6.21 million in tax credits from the California Film Commission. Steven Spielberg’s Lincoln, featuring Daniel Day-Lewis, Sally Field, and Tommy Lee Jones, hauled in $3.5 million in tax-free film credits (from Virginia). Silver Linings Playbook bagged $5.6 million (from Pennsylvania).”

Tax Incentives

That doesn’t mean that Silver Linings Playbook received a $5.6 million wad of cash. The way tax credits work is that the production budget is credited back $5.6 million in taxes owed. So, the producers are able to use that $5.6 million elsewhere in the budget, like editing, etc.

40 states (down from 45 in 2011) now offer tax incentive programs to keep film and television production going. While some states have cut their programs back, Georgia and Louisiana still compete to be the hostess with the most-est.

Louisiana offers up to 35% back in tax breaks. The Twilight Saga’s vampires and werewolves really took advantage of these. Georgia offers 30% tax credit. This went to all of Tyler Perry’s films and TV shows as well as to projects like Flight, The Blind Side, Lawless, Parental Guidance, The Walking Dead, Single Ladies, Fast 5, and X-Men: First Class. FULL LIST of tax programs

The Up-Side?

So the up-side, I suppose, is that while the government may take 35% of my acting residual checks in taxes, it is also (in some cases) gives back 35% in tax breaks to bring life to projects I can potentially work on.

I don’t know who I’m trying to convince more, you or me? LOL!
If not a Happy Tax Day, have a Happy Monday.

Lots of love from LaLa Land,
Naima

What do you think? Is there an up-side here?

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© 2013 Naima Lett. All Rights Reserved

About Naima Lett

Naima loves helping folks find their purpose and follow their dreams while deepening their faith. Often called The Hollywood Christian, she believes everyone should find a reason to dance daily, enjoy the 80 degrees and a breeze of the LaLa at least once, and have her Grandmother's bread pudding or sweet potato pie on holidays. Both are divine! :=) -- Dr. Naima Lett, Author: Confessions of a Hollywood Christian, CoPastor: Hope in the Hills, Beverly Hills

2 thoughts on “An Up-Side of Taxes in Hollywood?”

  1. I have no problem at all paying reasonable taxes. no problem in paying a time or dollar value levy for a particular project.
    I have a huge problem when I see diminishing health, education and police (read security) spending being off set by mega salaries and waste. Both of which are endemic to a point of global crisis.
    The Bible also talks about moral, fiscal and governance obligations. Lawyers and courts seem to increasingly be the ‘tool’ to mitigate obligation.
    Truth ends up being to each man & woman his own testimony before God, and let Him be the judge of it.
    Might sound a bit ‘religious’ in speak, but not in truth.
    God bless your day.

    1. Thanks for your thoughts, Rex.
      Appreciate it.
      We do have to wonder where our taxes are going and help hold accountable our government as they spend the $$ we send to them.
      Totally understand.
      Have a great day, as well,
      Naima

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