California GOP finds film tax credit curious

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It’s the kind of policy that is usually popular in the GOP: A tax credit that will save California businesses about $100 million.

But things get complicated when the film industry, typically aligned with Democrats and big labor unions, is involved.

GOP officials used the credit approved by Gov. Jerry Brown on Sunday night, intended to help curb the flight of film productions out of California, to take a shot at him and his November ballot initiative to increase billions of dollars of other taxes.

‘Presumably, the Governor believes that the lower tax rates will provide incentives for more films to be made here, resulting in more jobs,’ California Republican Party Chairman Tom Del Beccaro said in a statement. ‘More jobs will result in more tax revenue because working people pay more taxes.’

Del Beccaro went on: ‘Someone needs to ask the Governor why that sound economic logic doesn’t apply to every other aspect of the economy. We need to ask Gov. Brown why he wants want to raise taxes on small businesses through Prop. 30 but lower them for the film industry?’


Proposition 30 would temporarily raise the state sales tax by a quarter of a cent. It would also raise income tax rates on individuals with incomes above $250,000 a year and couples earning more than $500,000 annually.


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-- Evan Halper in Sacramento