WASHINGTON, DC –  U.S. Senator Kit Bond today voted to remove one of the most egregious examples of wasteful spending in the Democrats’ trillion dollar spending bill – an almost $250 million tax break for Hollywood movie producers.

 

          “Its insulting to struggling families in Missouri and across the nation that the Democrats would try to sneak in an almost $250 million tax break for Hollywood movie producers in their so-called stimulus bill,” said Bond.  “Calling a tax break for Hollywood movie producers ‘emergency stimulus spending’ is outrageous.”

 

          In the Democrats’ spending bill, Hollywood producers would receive a $246 million tax break.  This provision would allow large Hollywood studios the opportunity to choose between the existing tax break for movie studios, or to write off 50 percent of the entire production costs for movies and TV shows made in 2009.  In the years that follow, the remainder of the production costs would be written off according to existing depreciation law.  The 50-percent accelerated depreciation deduction in the first year is under the “bonus depreciation” provision enacted in 2008, which the bill extends through this year.

 

         Bond called this provision insulting to families in Missouri and across the nation who are struggling to put food on their table during this economic crisis.  Even more outrageous, the latest numbers show that Hollywood raked in over $1 billion in January 2009—the biggest January ever for the movie industry.  Box office receipts were up nearly 20 percent in January 2009, and ticket sales up 16 percent, over January 2008.

 

            Today, Bond voted to strike this special interest tax break for Hollywood.  The amendment to kill the Hollywood Tax Break passed with a vote of 52 to 45.  Bond has continued to stress that the Democrats’ spending bill fails to provide real relief for struggling families and small businesses.  Instead of sneaking in tax breaks for political supporters, a real stimulus bill would include broad and immediate tax relief for working families and small businesses.  In addition to helping families weather the economic crisis by putting more money in their pockets, tax relief will help our small businesses by giving them the money they need to create new jobs and encouraging them to invest in new equipment and hire new employees.

 

###