Berger At His Word

State Representative Jeff Berger doesn't know it but he's on to something. For reasons that are lost to us he's become aware that the motion picture industry produces no tax revenue to the state. Why is that? But forget the film industry does Connecticut produce tax revenue from car manufacturing, steel, textiles, toys, computers, televisions, paper, plastic, sporting goods? Of all the things a government can get tax revenue from, well what'ya know we don't produce films in Connecticut.

In his solution to rectify this there is a inking of truth. A bill was passed that gives the tried and tested "tax credit" to film makers and since then four new productions have taken place in the state. As reported in the Waterbury Observer the Connecticut Commission on Culture & Tourism "reports over $130 million in film, television and commercial production here. Connecticut film industry incentives provide a 30% tax credit on qualifying production costs exceeding $50,000."

We don't like tax credits. If someone were manufacturing plastic parts in the state and paid taxes for 20 years, that company would be paying a higher tax then the newcomer who has been given special treatment. Tax credits all but admit that taxes are too high for business, any business and that politicians use a reduction of taxes through credits only on businesses that they favor over others that they don't or have been here for decades. We consider tax laws just that, laws. When one company pays one tax and others another it smacks at equal protection of those laws. How in the world can they see that these special tax credits produce more activity in the industry but fail to see that an across the board tax cut for everyone would do the same for all industries?

Berger and the supporters of these credits have right in front of them the effects of an experiment that worked. Low taxes equals more business. That credits are necessary ought to tell them something about the tax system as a whole. For some reason though we wager that it won't and are perplexed as to why.