We’re gonna be in pictures?

The new $20 million annual Motion Picture Incentive (MPI) tax credit for filming motion pictures in Nevada starts this Jan. 1, and a production studio is opening in Reno.

I certainly hope that the new studio is a success, but I don’t expect Nevada to get much of a return on the credits. The national average is a mere 30 cents on the dollar.

Actor Nicolas Cage came to Nevada and awed the Legislature with testimony about how wonderful the tax credits are for Nevada. Nicolas Cage has made some very good films, but he has made some clunkers as well. One was the film called Stolen, filmed in New Orleans. It only grossed $304,318 on a production budget of $35 million. But Cage made out fine, because the taxpayers of Louisiana picked up much of the difference. Cage declared he is a Nevadan, who would like to get out of bed and walk to work. Unfortunately, as the Las Vegas Sun reported, his foreclosed upon, palatial Las Vegas home sold for $4.95 million. Other sources say Cage’s child is still going to school in Vegas, although they don’t go as far as to state whether the actor is walking to work.

Those of us who worry about the power of the 1 percent should remember that Hollywood has its share of the 1 percent, and they can be powerful political players. It is just good business for corporations to play the states for special tax breaks to do business. Thanks to Progressivism, the classical liberal idea of separation of business and state was replaced by the notion that the state should be involved with all manner of businesses, and a jungle of incentives and disincentives have been baked into what should be market decisions.

The Nevada Constitution says the lieutenant governor assumes the duties of the governor when the governor’s incapacitated or absent from Nevada. The lieutenant governor also presides over the Senate. But those limited duties are never mentioned when campaigning. Instead, the candidates for lieutenant governor campaign to be a good will ambassador to corporations urging them to relocate to Nevada.

There is always a revolving door to go through when a term of “public service” has expired, and constant networking with corporate CEO’s would seem to be a good way to do well while doing good.

The best way to attract businesses to Nevada is to have a business climate that is welcoming to all. Special tax breaks or regulatory waivers means government is attempting to pick the winners and losers in the market—never a good idea.

Nevada’s state tax structure with no personal or corporate income tax is the third best for business in the nation. Nevada, however, falls down to only the 40th best at the local level.

A lot of that has to do with public sector salaries. Our long-term debt due to public pensions and other benefits is worse than most states. Our schools are mediocre, and our infrastructure is badly in need of improvement.

Wouldn’t it be better for a lieutenant governor to spend more time interacting with local government to develop meaningful tax reform in Nevada, rather than junketing around with power points to corporate board rooms? Nevada needs reform that works to make our state a welcome place for all to come and do business here.

Unless Hollywood is going to invest millions in long-term movie production infrastructure, the Nevada Legislature should not be giving away our tax dollars to billionaire movie producers and erratic actors. It is time to husband those taxes for use by all the people of Nevada, or else cut them if they are so unnecessary they can be given away to carpetbag California film moguls.