Entertainment industry tax credits are working

Dave sent me a link to Bid to Lure Films Works So Well, It’s Nearly Broke, which is an exceptionally lazy piece of reporting.

But the good news for the city’s film industry is a mixed blessing for the city’s treasury. In 13 months, the city has exhausted the $50 million it had allotted for four years’ worth of tax credits for the industry, while the state has used up most of the $125 million it has allotted over five years. It is not clear if new business spurred by the program is making up the difference.

And being the New York Times, they didn’t see fit to, you know, do any actual reporting or fact-checking.

Otherwise, after two minutes of Googling and a search on the New York State Department of Taxation and Finance site, they might have learned that January 2006 NYS tax revenues were up 18.6% over the previous January with personal income tax revenue up a remarkable 28.3%. (page 2 of the January 2006 Tax Collections PDF)

One hopes our elected public servants do better than to trust the Times’ lazy reporting at face-value. Cutting the tax credits would just screw everything up again.

This is the Laffer Curve in action, again. Lower taxes lead to increased tax revenues.