Movie moguls don’t need tax breaks to make films in Florida

There probably aren’t many Florida voters calling on politicians in Tallahassee to pass special-interest tax breaks for highly profitable companies. But just like always, there are lawmakers in the state capitol trying to do just that.

This time it’s a bill to offer handouts for movie and TV production in Florida. It would cost our state’s workers millions — in the form of taxes they would have to pay to make up for the taxes not paid by those receiving special favors. The sponsors — state Sen. Joe Gruters (R-Tampa) and Rep. James Buchanan (R-Osprey) — ought to know better.

The best path to a healthy economy and steady job creation isn’t saddling taxpayers with the cost of subsidies for the popular or politically connected. On the contrary, trying to manage an economy by picking winners and losers can create serious problems for Florida businesses and workers.

It leads to a more complex tax code and the sort of rigged economy that makes it harder for small businesses and others to thrive. States that rely on such schemes are often the ones with high tax burdens and slow economic growth.

Fortunately, that doesn’t describe Florida. The state’s gross domestic product grew by more than 5 percent in 2018 — the most recent year for which data is available — and our unemployment rate is at a historic low. Instead of trying to pay Hollywood to send more jobs here — at the expense of Florida families — lawmakers should work to improve our state’s competitiveness and offer a business environment that’s the nation’s best for all kinds of firms to grow and thrive.

In many ways, Florida is a success story. We offer a competitive business climate that attracts all sorts of industries, including filmmakers.

The movie was filmed in Miami in 2015 — without special state tax breaks. It received eight Academy Award nominations, winning three, including best picture. is far from Florida’s only success story. In any given year there are movies, TV shows and other productions filmed around our state, generating jobs and income.

Producers come to Florida because of its natural beauty, famous settings, nice weather, a skilled workforce and a competitive business and tax environment. Not because of a tax break.

These are the competitive advantages that keep Hollywood coming — not handouts. By and large, they’re the same factors that lead other firms to locate here. Lawmakers should focus on reforms that enhance those advantages — while doing more to create opportunity that boosts wages and economic growth.

Florida has a great story to tell and the talent to tell those stories. We don’t have to give away tax dollars at the expense of the state’s most critical priorities.

Tax breaks like the one proposed for moviemakers don’t even do what they promise. A recent survey of nearly 550 state-level tax incentive deals show they do not improve the economy. A study by the state Office of Economic and Demographic Research showed that Florida got a negative return on investments — only an 18-cent return on every dollar spent on film tax subsidies the last time the state’s film tax credit was reviewed.

The same is true whether we’re talking about film production, stadium subsidies, economic development zones or other preferences. They definitely help the companies that receive them — and they give elected officials something to take credit for — but they don’t improve state economies in the least. Furthermore, the study found that larger and more profitable companies rather than smaller firms are more likely to be tax subsidy recipients.

State lawmakers should reject the calls from special interests for more of our money. Our state isn’t a piggy bank — whether framed as a tax rebate, a direct cash incentive, or another form of special favor.

Florida’s economy has continued to grow without special favors for millionaire movie moguls.

A more complex tax code would be more likely to hurt than help economic growth in the long run. And it is our workers and families who would bear the cost of payouts to some of the nation’s most profitable industries.

Our elected officials ought to do more to make sure firms compete on a level playing field — not to rig the economy to help a few while hurting many.

Moonlight

Moonlight

Skylar Zander is state director of Americans for Prosperity-Florida.