It is well known that Governor Chris Christie is a tough guy when it comes to budgets, after all he must, in order to put New Jersey's financial house back in to some sort of order. One industry that will feel the pain of some cuts is the entertainment industry. Gov. Christie's budget cuts the twenty percent tax credit for certain production costs associated with film and television, and they are not happy. Yesterday, a protest was held by actors (semi-famous ones!), stunt doubles, producers, and lobbyists to show their discontentment with the budget cuts.
He was flanked by plasma-screen televisions that showed episodes of "Mercy" - NBC's medical drama shot on location in Jersey City. The tax credit's looming expiration led NBC to begin stripping equipment from its Secaucus warehouse and shipping it to New York, which has proposed boosting its incentive to $420 million annually.Ahhhh. So the tax credit is really more of a subsidy for a commodity that no one wants and therefore does not buy (watch). Notice, a "generous" tax credit is necessary to make the show "Mercy" financially viable. No wonder they are bummed about Christie's cuts.
O'Leary admitted "Mercy," which was recently canceled, was doomed anyway by low ratings. But the show may get picked up by a cable network, allowing workers to keep their jobs - if a generous tax credit program makes it financially viable, he said.
The other gem gleaned from the article is the following:
People think of all the glitz and glamour that the motion picture industry brings," said Angela Miele, a vice president at the Motion Picture Association of America, which represents such firms as Disney, Sony and Paramount Pictures. "But what it really brings is lots of jobs. Our member companies operate like all other for-profit businesses and they will go where it is cheapest.A basic economics lesson brought to you by the Motion Picture Association of America.