By Daniel Greenfield @ Sultan Knish Blog
Ben Affleck recently complained that California “came to take this industry for granted a little bit.”
By that the movie star meant that the state wasn't funding it enough, but that's not for lack of California officials trying.
California has a $68 billion deficit, and Gov. Newsom is proposing $375
million in budget cuts for the California State University system, $68
million in cuts for wildfire prevention (even as LA is recovering from
the worst fires in history) and doubling Hollywood’s tax credits to $750
million
Hollywood, which already benefits from $350 million in
breaks, will get $750 million in tax credits even as money is being cut
from education, public safety and even wildfire prevention.
The
entertainment industry would be able to recoup up to 35% of their
spending, up from the current 20%, and the subsidies would cover
everything from sitcoms to reality shows.
The California
Production Coalition, whose members include the umbrella trade group for
Disney, Amazon, Netflix, Sony, Universal and WBs, has a list of demands
that include lifting the $100 million cap on expenses, and, even more
controversially, “above the line” costs of salaries for movie stars,
directors and other talent which can run into the tens of millions of
dollars.
Should California taxpayers really be covering Tom
Cruise’s salary? Hollywood thinks so. And the powerful Hollywood donors
to California Democrats means that they usually get their way.
When
Gov. Gavin Newsom faced a recall after a corrupt pandemic lockdown
system that kept churches and small businesses closed, but allowed movie
and TV productions to do whatever they wanted, Hollywood donors showed
up to throw millions at Newsom. Netflix CEO Reed Hastings kicked in $3
million, Universal, Paramount and top celebrities also stepped up.
A
‘virtual’ event chaired by Dreamworks co-founder Jeffrey Katzenberg,
raised over $1 million to keep Newsom in office. FOX, Sony and other
executives wrote checks for thousands of dollars.
Now Gov. Newsom is paying up.
Last
year, Disney’s ‘Paradise 2’, a series about political corruption,
fittingly received over $12 million, ‘Untitled WB Film’ got $20 million,
‘Untitled Disney+ Project’ picked up $14 million, ‘Suits LA’ got $12
million to shoot in LA, ‘LA Nights’ got $19 million to also shoot in LA,
Apple’s ‘Bad Monkey 2’ got $20 million and ‘Untitled Drag Queen Movie’
got $1.6 million.
Gov. Newsom and California Democrats claim that
these massive giveaways to huge studios are vitally necessary to keep
the film industry in Los Angeles or it’ll move on to Georgia. That must
be why Newsom also
exempted Hollywood from pandemic restrictions. But it doesn’t explain why he shut down virtually everything except those same Hollywood productions.
California
Democrats have gone after virtually every major industry in the state,
starving agriculture industries of water through environmental
restrictions, dismantling trucking with a ban on freelance workers,
taxing and banning oil and gas, and shoving out defense industries, all
the while raising business taxes through the roof and sending companies
fleeing to Texas.
Yet when it comes to Hollywood, Gov. Newsom and
his legislative supermajority claim that keeping this particular
industry in California is so vital that no amount of subsidies is too
great. State Democrats are willing to slash education spending just to
keep movies in California.
And yet Hollywood’s actual impact on California is limited.
Despite
false industry claims, Hollywood tax credits are a consistent net loss
for the states that offer them. States don’t offer tax credits because
they have any meaningful impact, but because the film industry is
glamorous, its lobbyists keep calling and celebrities keep writing
checks.
Even the vastly inflated Hollywood estimates of jobs
created and money spent is in the thousands (unless you also count their
absurd numbers of ‘background performers’ or extras) compared to
130,000 truck drivers, whom California Democrats have been chasing out
of the state, and over 4 million small businesses of which a third were
shuttered by pandemic restrictions.
Gov. Newsom and California
Democrats didn’t even blink at killing 7,500 small businesses during the
pandemic, which employed far more people than the Hollywood productions
do. If they really cared about jobs, they’d be providing massive tax
breaks for some of those small businesses instead of writing $20 million
checks to Disney and Netflix to “create jobs”.
Perversely,
Hollywood lobbies keep demanding more subsidies because of the supposed
impact that the pandemic had on their productions that they still
haven’t “recovered” from even five years later. But of all the
businesses in the state, Hollywood studios had
the fewest restrictions on their behavior. That’s why small cafes had to close and watch while Hollywood crews set up craft services in their parking lots.
Hollywood
had so much influence that when LA slapped a lockdown on everyone, and
asked productions to avoid stirring up bad feelings by restricting
filming to the same hours as other businesses, industry anger forced
cringing officials to withdraw their request and only asked them “to
voluntarily limit and/or avoid activities likely to invite a negative
community response”.
Small businesses in LA did not get requests
to “voluntarily” do anything. They had their power and other utilities
cut off if they did not comply. The general public was not issued
voluntary requests to wear masks or stay out of parks. Instead,
California Democrat officials chained off entire areas, blocked park
benches and set out to criminalize any lockdown dissent.
Except for Hollywood.
Gov.
Newsom and California officials declared that “workers supporting the
film, television and commercial production industry” were “essential for
the state’s critical infrastructure.” It did not clarify which part of
California’s “critical infrastructure” the movies and bad sitcoms made
up.
The double standard was obscenely corrupt then and it’s corrupt now.
5
years after receiving unprecedented exemptions, Gov. Newsom and
California Democrats are providing unprecedented subsidies to Hollywood
because of their supposed pandemic suffering.
“Hollywood workers
have endured a difficult last few years, starting with the pandemic,”
the LA Times claimed in defending Newsom’s $750 million in subsidies.
What
about the rest of the state’s workers and the millions of jobs that
were lost there? And many of those, unlike “background performers”, were
actual good lifelong jobs.
Hollywood productions don’t even
create stable jobs because of their erratic nature. They’re even less
stable (and often more abusive) than the Uber and Lyft.jobs that
California Democrats had declared war on and have tried to regulate out
of existence. But they are heavily unionized.
And the top players are major funders of Gov. Gavin Newsom and the Democrat majority.
Gov.
Newsom is not proposing to double tax credits for Hollywood because of
the economic benefits to the state, but the economic benefits to his
future presidential campaign. Democratic presidential campaigns live and
die by the money they gain from three industries: Hollywood, Wall
Street and Silicon Valley. That was why Biden and Kamala had so many
Hollywood fundraisers. Now Gov. Newsom is bribing Hollywood with $750
million in taxpayer money in the hopes that they’ll pay at least 10% of
that forward to his 2028 presidential campaign.
Daniel Greenfield is a Shillman Journalism Fellow at the David Horowitz Freedom Center. This article previously appeared at the Center's Front Page Magazine. Click here to subscribe to my articles. And click here to support my work with a donation. Thank you for reading.