Reel Bad Tax Subsidy Policy

David Cay Johnston, Tax.com:

As states fire school teachers, nurses, home health aides and freeze or cut the pay of those still working, Oregon has taken a different tack under its emergency room doc turned governor, John Kitzhaber. As he begins his third, nonconsecutive term, the governor wants to increase giveaways to Hollywood.

At last count 40 of the 50 states were throwing money at Hollywood to get a piece of the film biz. Some of the giveaways were so lush that producers got back 92-cents for every dollar spent, but most states have ether held firm or tightened up a bit.

Not Oregon, a state that has been among the hardest hit by job losses in the past few years.

While cutting $3.5 billion from the state budget, roughly $1,000 per Oregonian, Dr. Kitzhaber wants to raise the Hollywood subsidy kitty from $7.5 million to $12.5 million. His proposal raises a question: how much do we need another silly cable television show like made-in-Oregon "Leverage"?

And did Oregonian taxpayers ever need to give their billionaire footwear mogul Phil Knight, founder of Nike, any subsidy for his Portland film company?

Read the full article here. Discuss below.