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Tax incentives to entice investment in MT...if you're a movie mogul

ShootOnline, an online news site for the movie production industry, gave a glowing review of the Big Sky on the Big Screen Act in an article published today.  The Schweitzer administration originated this incentive program in 2005 in an effort to lure film companies to Montana.  In 2007, the legislature, with the support of the governor, made the deal even sweeter.

That's all fine and good, but what about using tax incentives to lure other industries to Montana?  Governor Schweitzer and his legislative Democrats killed a spate of business-tax proposals, including significant cuts to property taxes and the business equipment tax.  There seems to be some faulty logic here; if giving tax incentives leads to more movies filmed in Montana, won't parallel tax cuts lead to investment in other business?

According to the US Census Bureau, Montana ranks 47th in the nation in median household income, ranking below all our neighboring states: Wyoming 23rd, Idaho 26th, South Dakota 35th, and North Dakota 40th.  Part of the reason that Montana lags behind is our uncompetitive tax system, including the antiquated business equipment tax.  Bringing investment from film companies is fine, but shouldn't we be looking for ways to improve the economic climate for Montana's other, more-permanent industries?

Posted on Friday, June 29, 2007 at 02:42PM by Registered CommenterCarter in | CommentsPost a Comment

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