Fiscally-conscious Argentinian President Javier Milei is in the process of scrapping federal funding for the nation’s National Institute of Cinema and Audiovisual Arts, in a larger attempt to cut inflation and prioritize where money is spent — America should follow suit.

Currently, state and local governments are subsidizing woke Hollywood and lying about the benefits of government subsidies to taxpayers and Michigan is a perfect example of this.

Bringing Back a Failed Program for Round Two

Between 2008 to 2015, the state of Michigan gave the movie industry $500 million in tax subsidies to bring in more revenue and jobs to the state.

“It’s true that many years ago, Michigan tried a film incentive program, and it didn’t really go that well,” Rep. Jason Hoskins (D-Southfield), told his colleagues on Feb. 6. “The worst thing we can do now is just not try, and allow Michigan to fall further behind the rest of the nation on this.” (READ MORE: The Decline and Fall of Hollywoke)

Hoskins failed to mention that the program didn’t just not “go that well.” The corporate welfare program utterly failed and the state spent half a billion dollars with nothing to show for it.

Many of those supporting the program argue that if Michigan opted out they would lose the opportunity to compete with the 40 other states or cities that have some type of film tax incentives.

“These incentives are very important to make us competitive again,” said David Haddad, chairman of the Michigan Film Industry Association (MFIA). 

Failed Film Subsidy Programs

But Michigan isn’t the only state where the incentives have proved ineffective. Just this month, a new report from the state of New York found that the Film Production Credit, which was recently expanded to $700 million annually, is at a “net negative,” giving the state back just 31 cents for every dollar it spent on the tax break. (READ MORE: The Woke of Zorro)

In 2008, Michigan decided to give film subsidies a shot. “Get ready, the movies are coming to Michigan,” said former Michigan Gov. Jennifer Granholm at the time.

But, the governor was wrong.

While the program did bring some movies to the state to film, including Transformers: Age of Extinction and Batman v. Superman: Dawn of Justice, the state lost money on the subsidies.

A Michigan Senate Fiscal Agency report found that Michigan spent $37.5 and $100 million on tax credits in 2009 and 2010, while only generating $21.1 and $59.5 million in production activity in those same years. 

For every dollar the state spent on film subsidies, it only got 11 cents back in gained economic activity and did not bring more jobs to the state.

According to research from the Mackinac Center, Michigan had fewer film-related jobs in 2015 than it did before the program was implemented. A report from the Michigan Economic Development Corporation in 2013 also found that film incentives created zero full-time jobs.

Yet, the battle over subsidies seems to never end — even amid failure.

Last summer, the Multimedia Jobs Act was proposed as legislation in both the Michigan House and Senate. It would create a tax credit for Michigan-based projects, including film, TV, and commercial production. The legislation has received some bipartisan support, with Rep. John Roth, an Interlochen Republican, co-sponsoring the plan. (READ MORE: Jay Leno: Mix Politics With Comedy, and You Get Politics)

The new film subsidy program would allow eligible companies to get back up to 25 percent of total spending in tax credits for filming in Michigan and up to 30 percent if the project incorporates the Pure Michigan logo.

The proposed legislation, which is still waiting for committee approval, may not directly benefit Michigan residents. While there is a credit offering 30 percent of total spending for hiring Michigan residents, there is no requirement for hiring Michigan residents, and there is even a 20 percent credit for hiring nonresidents. 

Stop Believing the Lies

Film industry unions across the nation have played influential roles in pushing these subsidies. In the case of Michigan, MFIA has played a large role in pushing the reinstitution of the program. “In the first year, we expect to have $3 to $500 million injected into the economy,” Haddad said.

Any return on investment for the state is unlikely, given the track record of similar subsidy programs. Many critics of the program also see it as nothing but “bribing” Hollywood.

“It doesn’t matter which state does the bribing: Movie producers will be the only winners,” wrote Pat Garofalo, the director of state and local policy at the American Economic Liberties Project, and Michael LaFaive, senior director of the Morey Fiscal Policy Initiative for the Mackinac Center for Public Policy, in an op-ed for theWall Street Journal in 2021. 

It’s not time for Michigan to bring back the film subsidy program. Instead, it’s time for states and cities across the nation to take a page from President Milei and stop using taxpayer money to subsidize woke Hollywood.