Hollywood showdown: Lawmakers threaten industry’s tax breaks

McClatchy reports:

From Capitol Hill to state capitals, real-life Hollywood cliffhangers are being played out over tax breaks designed to woo the motion picture and television industry.

Lawmakers are re-evaluating the generous tax incentives they provide the film industry. Many say it’s not worth the money, especially when governments are facing tight budgets and the Hollywood is enjoying a record $35.9 billion in worldwide box office receipts _ $10.9 billion alone from the United States and Canada.

“They’re learning that the incentives don’t live up to the claims of their proponents,” said Scott Drenkard, an economist for the Tax Foundation, a longtime critic of the breaks. “The main reason they are popular is they’re a little bit sexy. They give politicians the ability to rub elbows with movie stars.”

Hollywood: the master rent-seekers.