Adam Schiff Pushes Taxpayer Film Subsidy as Hollywood Looks for Bailout
Hollywood is getting nervous. Productions are moving. Costs keep climbing. And now some lawmakers want Washington to step in and help cover the damage.
That is the pitch behind a possible federal film tax credit pushed by Sen. Adam Schiff. The idea would give movie and TV producers another reason to keep filming in the United States, even as more projects leave Los Angeles for cheaper places overseas or in other states.
Schiff says the industry matters far beyond California. “We have a lot of our influence around the world as a result of American film and TV,” Schiff says.
He also told Variety, “In order to save this industry in America, we need to be competitive with tax credits,”
Variety reported that Hollywood is still the center of the entertainment world in name, but not always in practice. Gene Maddaus wrote, “Los Angeles has been the world’s entertainment capital for 100 years and still has an unmatched concentration of talent and infrastructure,” Maddaus writes at Variety. “But in an age of globalization, with easy international travel and communication, the city is losing its edge.”
The reason is simple. It costs more to do business in Los Angeles. Labor is expensive. Union rules are heavy. Other states and countries are offering better deals and easier terms. That means studios have options, and they are using them.
Maddaus also wrote, “Everything costs more in L.A., starting with labor, due to the high cost of living and elaborate union agreements,” Maddaus writes. “Other states and countries have developed crew bases of their own, are more solicitous of producers’ needs and offer more generous incentives.”
That is exactly why the subsidy idea is running into pushback. Critics say taxpayers in the middle of the country should not be forced to prop up an industry that already gets massive attention, influence, and money. If Hollywood wants to compete, they argue, it should fix its own costs instead of asking for a federal handout.
Richard Grenell was blunt in response. “Hard NO to anything Schiff supports.”
He also added, “Variety Magazine, you will remember, attacks Trump and Republicans regularly. Now they want @realDonaldTrump to support our tax dollars for woke projects at Hollywood Studios?! Nope.”
Hollywood has every right to fight for business. But that does not mean taxpayers should be stuck footing the bill. If studios want more productions, they can make their pitch, cut their costs, and compete like everyone else.
One thing is clear. This is not a public emergency. It is a business problem. And a lot of Americans are going to wonder why they should be forced to pay for it.
https://x.com/Variety/status/2066919983607672954?ref_src=twsrc%5Etfw
https://x.com/RichardGrenell/status/2067219249634869396?ref_src=twsrc%5Etfw