Section 317 of the freshly approved legislation includes an extension for “special expensing rules for certain film and television productions.” Congress first enacted production tax incentives favorable to the domestic entertainment industry in 2004, and extended them in 2008, but the deal was meant to expire in 2011.
The fiscal cliff deal extends the tax incentives through 2013–even as payroll taxes rise on ordinary Americans.
The lesson here is that ‘tax breaks for millionaires and billionaires’ is just fine with Barack Obama, so long as that tax relief goes to actors, directors, and producers duping impressionable low-information voters into re-electing him into office. That’s balancing the books on the back of the little people, and making gullible middle class Democrat voters eat Hollywood’s “fair share.”
Meanwhile, 77% of Americans will be seeing a 2% hike on their payroll taxes. The lamestream media can now take their make-believe scripts of ‘Obama the small-government guy‘ and ‘Obama the tax-cutter‘ and send them to Steven Spielberg for his next Hollywood blockbuster, in left-wing fantasyland where they belong.