Friday, May 12, 2006

More Proof Tax Breaks Work:

Over the last few years we’ve constantly heard from Democrats and the liberal media that tax cuts don’t work. This is in spite of the fact that since President Bush’s tax cuts; tax receipts to the IRS are at record levels. Funny how that works, you cut taxes and IRS tax intake goes up. Two days ago those that fight the idea of tax cuts as a stimulant got more proof that they work, from no other then Mayor Bloomberg and the City Council.

On Wednesday Mayor Bloomberg was proud to announce a $30 million annual increase in financing for the Film Production Tax Credit program. The program gives tax credits to film producers who shoot their movies on location in New York. The Mayor announced the extension of the bill on the set of The Nanny Diaries. On the surface it would be easy to attack the Mayor for such a plan. After all movie studios make billions of dollars on these movies every year. You could argue that if they could afford to pay Jim Carrey $40 million for one film do they really need a tax break? Tax breaks for movie studios could be compared to the tax cuts for the rich that Democrats are always complaining about using their own argument of “they don’t need it”.

What Mayor Bloomberg knows and what President Bush’s tax cuts have shown, is that tax break increase revenue not lower it. As the Mayor stated in his announcement,

"Our Administration originally designed the film and television incentives program and fought for it, and we are delighted it has been so successful in generating approximately $500 million in production spending in 2005, and creating thousands of good jobs.”

It’s interesting how giving tax breaks to the rich businesses and entrepreneurs of this country leads to increase productivity for the country and in this case the city, as a whole.

It’s a simple program like this by Mayor Bloomberg that should stay in the back of everyone’s mind when they hear tax break opponents cry over breaks for industries and individuals.

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