opendna

opendna, 7 months ago

@andrew @law It's an argument which needs to be had, especially because not all incentives are equal, but this argument may be more open to attack than we might want when gunning for such powerful interests.

i.e. the opportunity cost of not giving $1 in tax credits for $3 of incentivized spending is $3. Absent the incentive, the spending is $0 so the multiplier is 3 (not <0).

i.e. out-of-state workers are taxed in GA when their in-state income exceeds $5k.

opendna, 7 months ago

@andrew @law Or am I wrong? I'm fascinated by this topic because I'm from BC (~$500m/yr), but it's very much not my domain.

opendna, 7 months ago

@andrew @law So, round numbers assuming 100% goes to wages of highly-paid out-of-state labor:

$1m in tax credits nets $3m in wages taxed at (round up) 6% nets only $180k in income taxes. Not great and certainly not the multiplier of 3 traditionally asserted. But the alternative isn't $1m in taxes, it's zero.

Didn't GA have to raise sales taxes to fund a stadium? And gift land? That's the kind of direct subsidy that would move film into the deficit category.

opendna, 7 months ago

@andrew @law IDK f'all about Georgia. The BC film subsidies are all tied to in-province spending and exactly equal the taxes collected from each activity.

It's like the province says "we'll give you the income taxes your BC employees pay" or "we'll comp you the sales tax on your BC purchases".

Which pissed me off because I wish I could get that deal, but it is a net positive for the province.

opendna, 7 months ago

@andrew @law A non-transparent secondary market for confidentially-issued transferable tax credits??

HAHA oh wowwww Thank you. I'm going to enjoy that concept for a long time.