FREE ENTERPRISE CLUB: Arizona’s Tax Dollars Should Not Be Going To Hollywood

FREE ENTERPRISE CLUB: Arizona’s Tax Dollars Should Not Be Going To Hollywood

By the Arizona Free Enterprise Club |

As President Trump gets to work cleaning up Joe Biden’s failed economy, the last thing the people of Arizona need is to be sending their hard-earned dollars to woke Hollywood. But that’s exactly what’s happening.

Thanks to a law passed in 2022, movie companies that film in Arizona will begin receiving refundable tax credit subsidies this year—up to 15 percent if they spend up to $10 million in production costs, 17.5 percent if they spend between $10 million and $35 million, and 20 percent if they spend over $35 million. Then, to top it all off, these movie companies can get an additional 2.5 percent if they meet other criteria.

But here’s the real kicker. The keyword in all of this is “refundable.” This essentially means that if a movie company qualifies for more credits than they owe in taxes, the State of Arizona sends them a check!

So, how much does this outrageous tax scheme cost the people of Arizona?

Up to $125 million each year!

For that kind of money, there must be at least some kind of return on this investment, right? Nope.

If a company comes to Arizona, films a movie, mentions our state in the credits but decides not to release or distribute the film, it still receives the money.

Yes. You read that right. Arizona taxpayers could be funding Hollywood movies that won’t ever see the light of day…

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FREE ENTERPRISE CLUB: Arizona’s Tax Dollars Should Not Be Going To Hollywood

Goldwater Institute Sues To Stop Hollywood Tax Scheme In Arizona

By Daniel Stefanski |

One of Arizona’s leading watchdog organizations is starting off the new year with a significant lawsuit.

Last week, the Goldwater Institute announced that it had challenged “Arizona’s unconstitutional tax subsidies for filmmakers.” The lawsuit, McEwen v. Arizona Commerce Authority, was filed in the Superior Court of the State of Arizona for Maricopa County.

In that lawsuit, attorneys for the Goldwater Institute wrote that “this case challenges the constitutionality of a state program that subsidizes the film industry and private film companies to the tune of millions of dollars in refundable tax credits each year.” The filing adds that “The Arizona Motion Picture Production Program violates the Arizona Constitution’s Gift Clause, both facially and as applied to two film production projects approved to receive taxpayer-funded subsidies.”

Parker Jackson, a Staff Attorney at the Goldwater Institute, wrote a blog post about the lawsuit after it was filed with the court. He said, “…In 2022, when the state legislature controlled a $5.3 billion surplus, film industry executives and lobbyists who for years had failed to revive a subsidy program seized their chance to get back in on the action. They cobbled together enough votes to enact the Arizona Motion Picture Production Program, which provides up to $125 million in refundable tax credits each year to qualified film production projects. ‘Refundable’ means that if a film company qualifies for more in credits than they owe in taxes, the state cuts them a check! That’s even worse than the old program, which only allowed for ‘transferable’ credits (meaning the recipient could transfer or sell the credit to someone else, but the state didn’t directly send them cash).”

Jackson shared that “After delays due to administrative rulemaking and recent strikes that rocked the film industry, the state is set to finally begin issuing the first round of credits this year. The Arizona Commerce Authority has begun the process of approving subsidies up to $1.2 million for a single project.”

The Goldwater attorney finished his piece, saying, “These types of abuses are exactly why the Arizona Constitution prohibits the state from subsidizing or otherwise giving out money for private purposes unless taxpayers receive direct benefits in return. That means that the state can contract with private companies to perform services or provide supplies at fair market rates, but donations, grants, subsidies, and other forms of corporate aid are not allowed.”

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Senate Candidate Ruben Gallego Fundraises With Hollywood; 75 Percent Of Donors From Out Of State

Senate Candidate Ruben Gallego Fundraises With Hollywood; 75 Percent Of Donors From Out Of State

By Staff Reporter |

Democratic congressman and Senate candidate Ruben Gallego recently held a fundraiser in California with Hollywood elites, a move punctuating his continued reliance on out-of-state donors to bankroll his campaign. 

Deadline first reported that Gallego had his fundraising event at the home of political strategist Donna Bojarsky, with major guests including Leslie Gilbert-Lurie, author and former TV executive and member of the Cal State University board of trustees; Christy Callahan, former creative executive and TV writer; former Rep. Howard Berman; actress and dancer Stephani Sosa; Flame Ventures’ Tony Krantz; and attorney and former Los Angeles City Controller Wendy Greuel.

According to OpenSecrets, over 75 percent of Gallego’s funds come from outside Arizona: nearly $11.7 million, compared to just over $4.8 million from Arizona. 

A majority of the millions from Arizona came from the Phoenix-Mesa area (over $2 million) and Tucson (over $1 million). 

Aside from Arizona, the other top four individual states to contribute to Gallego’s campaign were: California at $3.5 million, New York at $1.4 million, Massachusetts at $911,000, and Texas at $812,000.

Top out-of-state metro areas were New York ($915,000), Los Angeles-Long Beach ($731,000), and Washington, D.C. ($726,000). 

In March, Gallego attended another Democratic mega-fundraiser out of state, that time in New York City. His presence was marked by George Soros’ son and now-leader of the Democratic dark money empire, Alex, in an Instagram post, where Gallego and Alex stood alongside the famed playwright who played co-host to the fundraiser, Lin-Manuel Miranda. 

“Kicking off campaign season with my co-host [Lin Manuel] for congressman Ruben Gallego’s Senate run in Arizona,” wrote the young Soros. “Ruben has an impressive life story and the stakes of this year’s election couldn’t be higher, they’re existential.”

The Soros family has given over $13,000 to Gallego’s campaign. 

According to the FEC’s latest data through March, Gallego’s top Arizona donors include Nathan Sandler, an investor out of Paradise Valley; Donald Martin, chairman of Competitive Engineering out of Tucson; William Lewis, an investor out of Phoenix; Charlotte Hwang, president of Competitive Engineering out of Tucson; Timothy Riester, chief executive and owner of Riester Advertising out of Phoenix; Francis Najafi, CEO of Pivotal Group out of Phoenix and his wife, Cheryl; Gene Banucci out of Scottsdale; James O’Keefe, a consultant out of Scottsdale; William Cook out of Phoenix; Donalyn Mikles out of Sedona; James Pederson with the Pederson Group out of Phoenix; Jim Mapstead with Accurate Signs & Engraving out of Phoenix; William Humphreys a rancher out of Tucson; Subhash Thathi out of Mesa; Gilbert Lara out of Prescott; Kathleen Counihan, a gallery owner out of Tucson; Nieves Riedel with Riedel Construction Company out of San Luis; Kent Heath, vice president of Bruker out of Scottsdale; Phyllis Banucci out of Scottsdale; Karl Obergh, president/CEO of Ritoch-Powell out of Phoenix; Christina Isner out of Scottsdale; Pamela Powers, a physician out of Prescott; Stephen Golden out of Tucson; Pat Deconcini with 4-D Properties out of Tucson; David Young with Trifecta Clinical out of Tucson; Pamela Werth out of Scottsdale; and Reuben Merideth, a veterinarian out of Tucson.

Among Gallego’s top individual out-of-state donors as of March were Arthur (Art) Lipson, an investor out of Utah, Ronald (Ron) Conway, an investor out of California; Rogelio Sosa, the CEO of OURO out of Texas; David Trone, a Democratic congressman out of Maryland, and his wife, June; Vincent Ryan, multimillionaire chairman of Schooner Capital out of Massachusetts, and his wife, Carla Meyer; Ken Olum, professor of Tufts University out of Massachusetts; Molly Munger, a California attorney; Charles Mostov, a California attorney; Roger McNamee, an investor and retired venture capitalist out of California; Anthony Maceira and Andres Guillemard, Puerto Rican lawyers; Anne Lovett out of New Hampshire; George Krupp, co-founder and CEO of Berkshire Property Advisors out of Massachusetts; Chris Hughes, senior fellow at the Institute on Race, Power And Political Economy in New York; Mitzi Henderson, former president of PFLAG (Parents, Families, and Friends of Lesbians and Gays) National; Robert Haselow, a doctor with Minneapolis Radiation Oncology out of Minnesota, and his wife, Justine; Stephen English, a retired attorney out of California; Joseph Cotchett Jr., a California attorney; Sundae and Mark Breen out of Connecticut; Joseph Albright, a retired journalist out of Wyoming and husband to the late Madeleine Albright, the first female Secretary of State; and Oscar Ramirez, government relations personnel with Fulcrum Public Affairs out of Washington, D.C.

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

FREE ENTERPRISE CLUB: Arizona’s Tax Dollars Should Not Be Going To Hollywood

Taxpayer Subsidies For Hollywood Are Coming Back To Haunt Arizonans

By the Arizona Free Enterprise Club |

“Don’t California our Arizona.” It’s a saying we’ve had around here for quite some time, and for good reason. Not only is California known for having ridiculously high tax rates, but woke policies in the state have:

  • Banned the sale of gas-powered cars by 2035.
  • Banned all natural gas appliances (like the gas stove) by 2035.
  • Led to an increase in smash-and-grab robberies after Prop 47 more than doubled the felony threshold for petty theft and shoplifting.
  • Dramatically increased homelessness despite throwing billions of dollars at the problem.
  • Led to rolling blackouts during historic heat.

The list could go on and on. But it’s pretty clear. California’s policies have been a disaster, so much so that the state once ran out of U-Hauls because so many people were leaving. And yet, despite all this, Arizona lawmakers still decided to send your hard-earned dollars to woke Hollywood liberals through a movie tax credit bill last year. And while we hate to say we told you so, that decision now appears to be coming back to haunt Arizonans…

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FREE ENTERPRISE CLUB: Arizona’s Tax Dollars Should Not Be Going To Hollywood

Arizona’s Movie Tax Credit Bill Is a Major Loss for Taxpayers

By the Arizona Free Enterprise Club |

If you like forking over your hard-earned dollars to woke Hollywood liberals, Arizona lawmakers have you covered.

Last month, the state legislature took on the role of “Minions” for the film industry. As you may recall, the Club previously fought against a movie tax credit bill known as SB1708. After passing the Senate, it failed in the House. But in a shady move, Senate Appropriations Chairman David Gowan resurrected the effort through a strike-everything amendment to HB2156, declaring that Hollywood subsidies were his top issue in budget negotiations and any budget agreement was contingent on its passage. A few days later, the bill passed when a handful of Republicans joined every Democrat to support it. Governor Ducey allowed the bill to become law without his signature on July 6th…

So, how much Hollywood corporate welfare will Arizona taxpayers be on the hook for?

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