Green Scream: The Decay of the Hollywood Special Effects Industry

Re:Green Scream: The Decay of the Hollywood Special Effects ... by ef4 on Friday March 01, 2013 @10:18AM (#5304620)

One can argue that tax jurisdictions compete with each other in a market. Which is a good thing, as it helps put an upper bound on how aggressive a jurisdiction can get before capital starts fleeing.

But of course this picture is missing one of the key mechanisms of a truly free market -- there's no market pricing of the market participants themselves. You can't buy out a government that's acting foolishly.

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Re:Green Scream: The Decay of the Hollywood Special Effects ... by cdtwigg on Friday March 01, 2013 @10:30AM (#5304704)

It's a refundable credit, meaning that the government will reimburse the company for VFX work above and beyond its tax liabilities. How is this "tax jurisdictions competing" and not a direct government subsidy? http://www.bcfm.ca/faq/#pstc4

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Re:Green Scream: The Decay of the Hollywood Special Effects ... by ef4 on Friday March 01, 2013 @10:53AM (#5304887)

I think that's a distinction without a difference.

Whether the government taxes you less, pays you directly, or puts tariffs on your foreign competitors, it all amounts to a subsidy in the end.

(And I don't disagree that it's a foolish idea.)

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