tax breaks for Big Hollywood...oh, that's ok!

From the editorialists of the WSJ (hat tip: Linda Christiansen)...

We're constantly told that taxes don't matter to business and investors, but listen to that noted supply-side economist, Alec Baldwin. The actor recently rebuked New York Governor David Paterson for threatening to try to help close the state's $7 billion budget deficit by canceling a 35% tax credit for films shot in the Big Apple.

"I'm telling you right now," Mr. Baldwin declared, "if these tax breaks are not reinstated into the budget, film production in this town is going to collapse, and television is going to collapse and it's all going to go to California." Well, well. Apparently taxes do matter, at least when it comes to filming "30 Rock" in Manhattan.

Believe it or not, Mr. Baldwin's views are shared across the movie industry, which is pleading in state capitals across the country for most-favored-tax status. Hollywood productions are highly mobile and can film just about anywhere. So they have taken to shopping around the country -- and the world -- for the most lucrative tax avoidance deal.

According to the Motion Picture Association of America, nearly 40 states have corporate tax carve outs or generous cash rebates to lure movie studios to their states....

Of course, this is the same Hollywood film industry whose members fund causes and candidates that favor raising taxes on everyone else. The Motion Picture Production and Distribution industry last year gave $14 million in political contributions: 89% went to pro-tax Democrats....

We've got nothing against industries trying to reduce their tax liability....The movie industry's tax machinations are irrefutable evidence that low tax rates do affect business decisions....