Hollywood Film Groups Plead For Tax Breaks
According to a report in
the LA Times, Hollywood film and television workers told state lawmakers on
Wednesday that they must introduce meaningful tax breaks and cut red tape if
they are to compete with Canada and other countries which are proving more attractive
as locations for film productions. Speaking at a hearing at
the Los Angeles Center Studios, Ross De Vol, an economist with the Milken Institute
economic research organisation cited figures which showed that the budget of
a $40 million film could hypothetically be cut by around 25% if shot in Canada.
He also told state legislators that between 1990 and 1998, the percentage of
US-developed productions shooting in foreign countries almost doubled to 26.5%,
with the vast majority of runaway productions choosing to locate in Canada.
Representatives from actors'
unions also spoke before state officials, revealing that the topic of runaway
production had become one of the most important issues for actors as well as
executives, and urging them to find a way to counteract the trend. However, state officials
warned that, although they sympathize with the plight of the Hollywood film
industry, tax breaks and other major changes are unlikely in the current climate,
due to the worsening financial picture in the United States generally. .
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