As noted here before, the NC General Assembly is considering a bill (HB 713) that would further expand the state’s program of tax breaks to Hollywood production studios. Just last summer, Gov. Perdue signed into law SB 943 which increased the size of the tax break extended to these massive production studios. Between the two bills, annual tax breaks to these Hollywood big shots are estimated by Fiscal Research to soon come to around $100 million annually, a burden to be shouldered by North Carolina taxpayers and small businesses struggling to pay their bills.
Compare this to the comments regarding a recent proposal to reduce North Carolina’s tax rate on small businesses:
The House Finance Committee unanimously approved a bill aiming to spur job creation by small businesses with new tax breaks, The committee had earlier rejected a Republican-led effort to cut the tax rate to 5 percent for sole proprietors and other small-business owners who have to report their business revenues on their personal income tax returns. Legislative staffers estimated the proposal by Rep. John Blust, D-Guilford, would cut the state’s tax collections by $125 million to 150 million. “I think that says it all. I don’t know where we’ll get $125 million to $150 million this year,”said House Majority Leader Hugh Holliman, D-Davidson, the bill’s sponsor. “This is just too expensive in our current financial situation.” (bold added)
So Holliman thinks that state can’t “get” $125 to $150 million for real tax rate reductions on small businesses that will create sustainable jobs and make North Carolina more competitive. Apparently, however, he thinks the state can “get” $100 million for Hollywood elites. Holliman voted yes on SB 943 last year, and also voted yes on HB 713 earlier this month.
Nice to know where your priorities are, Representative Holliman.