New York’s liberal governor, Andrew Cuomo (D) has tucked in a budget provision that would make tax credits available to a live-audience TV talk show that pretty much mirrors what NBC’s “The Tonight Show” would look like if it moved back to New York City.
People may point to this example as one of many tax breaks for the rich, but let’s look at it a different way. From the New York Daily News.
Quietly tucked into tentative state budget is a provision that would help NBC move “The Tonight Show” back to New York, the Daily News has learned.
…the episodes “must be filmed before a studio audience” of at least 200 people. And the program must have an annual production budget of at least $30 million or incur at least $10 million a year in capital expenses.
In other words, a program exactly like “The Tonight Show.”
Liberals should review this proposal and cry foul. Certainly, evil lobbyists wrote the portion of the provision specifically with “The Tonight Show” in mind. These tax breaks are targeted to the rich people from Hollywood! Did you know legislation is written all the time to target a very specific state, city, industry or business without using the name of the state, city or industry?
But Cuomo, even though this could be a perfect example of a targeted loophole for the rich, is promoting this idea.
Aides to Gov. Cuomo denied Thursday that the new provision was written specifically with “ Tonight ” in mind.
“It’s meant to attract shows to New York that are currently in other states that can generate economic revenue and tourism,” said one Cuomo aide.
In-other-words, a liberal Democrat is depending on a lower-taxes equals job-growth model to improve the New York economy. That’s right, a Democrat is expecting Trickle Down Economics to work for his city. Everyone say “hypocrisy.”
In my opinion, targeted tax breaks like these one-off proposals are the wrong thing to do. Certainly similar plans – like Connecticut’s First Five program – does work to bring companies to states or cities. But as usual, there are political power players picking the winners, with the certainly another set of political power players will come in with a lower bid five or ten years from now to lure that business to a different place.
This is a liberal economic band aid. Democrats know they can not sustain high taxes while providing crappy service and quality to customers (the people), so they slap these tax credit band aids into budget provisions so they can “claim” their move will bring 3,500 jobs (or whatever) to the city or state. See? They care and are doing something!
If they really cared, Cuomo would employ an overall tax and economic strategy to make it worthwhile for every business to consider a move to New York, and ensure residents want to stay, work and play in the state. Could you imagine if every state implemented a strategy like that? We’d have 50 states and the District of Columbia working to provide the best service and quality they could at a low price (tax rate). Let’s hear it for competition, capitalism and conservatism!