Issue link: https://digital.copcomm.com/i/309120
51 MAY-JUN 14 / CINEMONTAGE were the first locations to offer film productions significant tax-credit incentives. The Canadian model was quickly copied around the world. By 2013, more than 40 US states and a dozen foreign countries offered film incentive programs. According to the researchers, Canada also captured the largest cumulative production budgets, totalling $1.27 billion. Second was the UK, where $1.17 billion in cumulative budgets were reported. Third was California, where budgets totalled $1.08 billion. Louisiana was fourth with $976 million and Georgia was fifth with $415 million in total budgets. California does continue to dominate as the home of most big- budget animated movies, but the report points out "this advantage is beginning to diminish." Of 10 big- budget animated movies released in 2013, four were made in California. Other places where they were made are Connecticut, Texas, Vancouver, France and India. When it comes to vendors that contribute to film productions — from equipment to catering — the businesses are following the work out of California. "The negative economic impact for California is well into the billions of dollars on an annual basis," the report says, calling the pace of this migration "dizzying." "The film and entertainment industries are absolutely essential to California's middle class, and this underscores the importance of our work to level the playing field against the other states and countries who are luring our jobs away," says Los Angeles Mayor Eric Garcetti. "These jobs not only support California families, they generate revenues that pay for schools, infrastructure and other state services." "Considering California's vast filmmaking talent, the state should be exporting films for global audiences, not jobs to global competitors," says FilmL.A. President Paul Audley. "State policymakers have the opportunity to make a difference this year by expanding California's film and television tax credit." SUBSIDIZING THE CORPORATE ONE PERCENT In 1994, Robert Reich, as then President Bill Clinton's Secretary of Labor, coined the phrase "Corporate Welfare." At the time, Reich was reacting to GOP attacks on welfare policy, and delivered a blistering tirade against what he identified as $225 billion in tax benefits for particular industries. "Since we are committed to moving the disadvantaged from welfare to work, why not target corporate welfare as well, and use the savings to help all Americans get better work?" he said. Some things refuse to change. The world's wealthiest corporations continue to receive outlandish levels of public funds. That's the takeaway from a February study of 25,000 major taxpayer subsidy deals from the last two decades. A report from taxpayer watchdog group Good Jobs First, called "Subsidizing the Corporate One Percent," shows that the world's largest corporations are not models of self- sufficient capitalism, writes David Sirota in the left-leaning journal of public policy and opinion, In These Times. On the contrary, they're propped up by billions of dollars in corporate welfare from state and local governments. Those who embrace the idea of a free market might expect such subsidies to be seed money targeted at startups and budding entrepreneurs. But as the study Courtesy of Adrian McDon- ald, FilmL.A., Inc. The California Film and Production Alliance, collaborating with the IATSE and other Hollywood unions, held a massive rally to support AB 1839 in February in Burbank. Pictured on stage, from left, are Scott Roth (Local 800), Bruce Doering (Local 600), Patric Abaravich (Local 728), Ed Brown (Local 44), Cathy Repola (Local 700), Leslie Simon (Local 871), Anthony Pawluc (Local 44) and Ed Duffy (Teamsters). Photo by Craig T. Mathew/IATSE Local 600. CineMontage_May-Jun_14-3.indd 51 4/15/14 2:59 PM