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New York politicians who sabotaged the deal with Amazon claim to oppose business subsidies in principle. Sweetheart's agreements are "long discredited economic development policies," said Senator Michael Gianaris, perhaps the most outspoken QG2 adversary.
Similarly, Jimmy Van Bramer, a member of the city council, described the HQ2 deal in which Amazon shook New York and "pulled out their pockets" as a "swindle".
Hypocrisy a lot? Gianaris and Van Bramer both support grants for their favorite sector, namely film and television producers.
The objections of Gianaris are particularly rich. This critical spokesperson for corporate and wealthy taxpayer subsidies has long been a leader in the New York State film tax credit, which provides tax credits to studios. according to the money spent on film or television production in the Empire State.
The program, in effect for 15 years, offers a 30% discount on all production costs "below the line", which includes the local team and staff who transport and install the lights and cameras as well as – service tables that you see in the filming locations of the city every day.
The agreement that Amazon was supposed to get was $ 3 billion in tax relief and other benefits, which is significant even over 20 years. But the film industry earns at least $ 420 million each year (although less conservative estimates put it at $ 650 million), and that money comes in the form of refundable tax credits.
This means that credits can be cashed upon receipt or sold to another entity, which may even not have any economic activity in the state. Over the years, film and television studios have raised billions of dollars in cash from New York taxpayers through this trick.
Gianaris praised the film tax credit. He was an original sponsor of the program. And he pleaded vigorously for his renewal. He likened it to an investment, like the 401 (k) of a family, and described it as "the most successful economic development program of the last decade", considering all the jobs created.
Meanwhile, as Chair of the City Council's Cultural Affairs Committee, Mr. Van Bramer has been instrumental in increasing the City's grants to the film industry, including free free slots, free police protection and no sales tax for production-related "consumables". in addition to various cash grant programs and free marketing on buses and subways.
Yes, many movies and TV shows are shot in New York. But it is less clear that this is due to all the cash donations we give to producers. On the one hand, according to data from the Federal Reserve, the number of jobs in film production and sound recordings in New York has not changed much since 2013.
In addition, many of the programs and films we pay for would be filmed here: can anyone imagine, for example, that "Saturday Night Live", which received nearly $ 50 million worth of tax credits, pull the strings and start spinning in New Jersey or Toronto if the subsidies are exhausted?
That's why E.J. McMahon of the Empire Center for Public Policy has called the grant "the largest and most outrageous corporate gift to date in New York – no exceptions".
So why do Gianaris and city councilman Van Bramer love the film production tax credit so much, even though he's – like the Amazon plan – obviously bribed an industry as rich as it is fantastic?
Take a look at their campaign finance records.
Gianaris, who began her career at the feet of Shelly Silver, the mistress of the Assembly, took tens of thousands of dollars in contributions from Silvercup Studios, Broadway Stages and Kaufman Astoria Studios, as well as from Local 817 Teamsters in the theaters, all of which rely on the additional activity generated by the studios and benefiting from a 30% discount on their costs.
Van Bramer has also received thousands of dollars in campaign contributions from studio owners at his office.
It may be that the film tax credit program is an extremely effective way to give billions of dollars in taxes to private companies to hire New Yorkers. But it is the same argument that was advanced by the supporters of the Amazon agreement, who pitilessly mocked the clash of leftists who derailed him. Michael Gianaris and Jimmy Van Bramer should explain why some companies deserve our money and others do not – and hoping that "they donated to my campaign" is not the main excuse.
Seth Barron is deputy editor of the City Journal of the Manhattan Institute.
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