CDN Tax Credits

[Guest]

I've seen this coming for a long time as bankrupt states can no longer fund their film tax credit schemes. Plus the US has no national tax credit at the federal level the way Canada does. One thing the article didn't mention was that while the CDN dollar may now be worth more than the USD, when US producers take their tax credit out of Canada the refund is not devalued when it is converted into USD. This is a major plus for Americans.

 

On the down side for Canada, increased US production does nothing to help the "Canadian" film industry. Since the big US shows never hire Canadian dept heads or lead actors. The rental companies make a few bucks here, and grips and carpenters, etc have jobs for a few months. That's about it.

 

http://www.hollywoodreporter.com/news/us-tax-credit-chill-sends-101503

 

R,

[Chris Keth]

The rental companies make a few bucks here, and grips and carpenters, etc have jobs for a few months. That's about it.

 

You don't see any value in rental companies keeping in business and the "rank and file" workers keeping fairly steady jobs?

[Guest]

You don't see any value in rental companies keeping in business and the "rank and file" workers keeping fairly steady jobs?

 

That has benefit yes. But we can't build a home grown commercial industry with that.

 

We'll be stuck with auteur gov't funded Canadian product that Canadians won't watch if you pay them.

 

R,

[Brian Dzyak]

That has benefit yes. But we can't build a home grown commercial industry with that.

 

 

 

Ah, so tax incentives are NOT such a great thing IN THE LONG RUN after all. Eh? :)

 

 

The "Hollywood" circus arrives every once in a while, gives some temporary jobs, doesn't really contribute to the Canadian society (because the tax breaks outweigh the employment income and other ancillary benefits), then "Hollywood" leaves until the next time IF the tax "incentives" are still in place.

 

 

 

Who are "Incentives" helping again?

[Guest]

Ah, so tax incentives are NOT such a great thing IN THE LONG RUN after all. Eh? :)

 

 

The "Hollywood" circus arrives every once in a while, gives some temporary jobs, doesn't really contribute to the Canadian society (because the tax breaks outweigh the employment income and other ancillary benefits), then "Hollywood" leaves until the next time IF the tax "incentives" are still in place.

 

 

 

Who are "Incentives" helping again?

 

Overall it's a good thing for us, and what film industry there is here. For instance I am able to get lower rates at transfer facilities because Hollywood studios are paying book rates. That indirectly subsidizes my work. Shhhhh, don't tell them I said that. :)

 

What I am talking about here Brian is the creative aspects of the film industry in Canada. There is less incentive for people to get up their own projects when the remake of Total Recall is shooting in Toronto with a budget of 300 million! And as I was saying, very few if any dept heads are hired in Canada, they all come from LA. The people that work under the various heads will be Canadians though. So they have jobs at least. FYI, the salaries of all non Canadians are not covered under the tax credit umbrella, so there is no income tax loss.

 

The tax credits will not leave Canada as they are in several US states. Neither the federal or provincial gov'ts have given any indication that the program will ever end.

 

If Ontario where to consider canceling the tax credits here, there would be a mass exodus of work to Quebec. And the Ontario gov't would never stand for that.

[Brian Dzyak]

 

The tax credits will not leave Canada as they are in several US states. Neither the federal or provincial gov'ts have given any indication that the program will ever end.

 

If Ontario where to consider canceling the tax credits here, there would be a mass exodus of work to Quebec. And the Ontario gov't would never stand for that.

 

 

So, Ontario (it's people who rely on tax revenue) is the sucker in this scenario? They keep subsidizing a for-profit industry at a loss but claim it as a positive because a few jobs are "created" for a couple months at a time?

[Guest]

Well Brian take a look at where the feature film work is coming from, and going to.

 

Then you will have an idea as to who the real suckers are. :)

 

R,