Cronyism at Its Worst: Missouri Taxpayers Fund Hollywood’s Elite

Missouri's legislature is again considering expanding film industry tax credits, a move purported to stimulate economic growth and attract Hollywood filmmakers. Despite repeated evidence of their ineffectiveness and moral shortcomings, proponents persist in pushing these costly incentives. Missourians should strongly oppose this misguided policy.

History serves as a stark reminder of the pitfalls associated with film tax credits. Missouri previously implemented similar programs, only to experience minimal economic benefit coupled with significant costs to taxpayers. A comprehensive review conducted in 2010 by the Missouri Tax Credit Review Commission revealed that the program failed to generate significant economic activity. Instead of driving sustainable growth, the credits resulted in net losses for the state budget, effectively subsidizing out-of-state companies with no long-term commitment to Missouri.

Georgia, frequently cited as a model for film tax credits, offers an equally cautionary tale. Despite billions poured into Hollywood’s pockets, reports from the Georgia Budget and Policy Institute indicate minimal returns for average Georgians. The jobs created are often temporary and low-paying, with most high-paying positions remaining out-of-state hires. Furthermore, the promised economic "multiplier effects" are consistently overstated, leading to disappointing returns on taxpayers' substantial investments.

Beyond economic inefficiency, another significant concern is the type of content Missouri taxpayers are indirectly financing. Hollywood has increasingly embraced overtly leftist and woke narratives, often directly contrary to Missouri values. Our state’s hardworking taxpayers should not be coerced into subsidizing Hollywood elitists whose films actively oppose and undermine conservative principles cherished by many Missourians.

A prime example is the United Kingdom’s recent grant of nearly $35 million in tax incentives to the highly controversial "Snow White" remake—a production widely criticized for its woke reinterpretation and rejection of traditional storytelling. This instance illustrates clearly how tax credits do not simply support economic activity, but actively subsidize ideological projects that many taxpayers strongly oppose.

Hollywood’s long-standing hostility towards conservative states and values is evident in their boycotts and public statements. Missouri residents remember vividly how major studios threatened economic boycotts in states advancing pro-life legislation, publicly maligning our shared values and traditional principles. Handing taxpayer dollars to the same Hollywood elite who publicly disparage and attempt to economically harm our state is both counterintuitive and morally reprehensible.

Film tax credits represent a profound moral corruption of governmental authority. Ludwig von Mises argued strongly against governmental interference in the economy, noting that such subsidies create distorted markets, reward political connections, and undermine genuine competition. Tax credits, in essence, represent a form of wealth redistribution—taking from average taxpayers and awarding it to politically-connected corporations and industries.

This form of economic favoritism, or "cronyism," erodes public trust and undermines the ethical foundations of a free market economy. Friedrich Hayek articulated the dangers of governments picking winners and losers, highlighting how such actions invariably benefit those with political clout rather than fostering genuine economic productivity. Government should exist to protect individual rights and ensure a level playing field, not to artificially inflate the profits of selected industries through taxpayer-funded incentives.

When tax dollars are diverted to subsidize corporate profits, the core principle of fairness inherent in democratic governance is violated. Taxpayers, many of whom struggle economically themselves, are forced to underwrite Hollywood projects that yield questionable economic returns and often run contrary to their own deeply-held moral and political beliefs.

Expanding film tax credits in Missouri is not just economically imprudent—it is morally indefensible. Past experiences in Missouri, Georgia, and more conclusively demonstrate the ineffectiveness of these credits as an economic development tool. Moreover, taxpayers should not be compelled to subsidize an industry actively hostile to their values and interests.

Missouri legislators have a responsibility to protect taxpayers from wasteful and unethical government policies. Film tax credits embody both waste and corruption, transferring resources from everyday citizens to Hollywood elites who neither need nor deserve our financial support. Missourians must firmly oppose any attempt to revive or expand film tax incentives, choosing instead to uphold principles of economic fairness, market integrity, and moral responsibility.

Links:

• MO Chamber Supports Film Tax Credits
• HB 1499 - Modifies the show MO act tax credit caps for qualified motion media production projects
• They’re Back! Film Tax Credits Haunt the Missouri Legislature
• Georgia Tax Breaks Don’t Deliver
• How To Make A $13 Million Profit From ‘Snow White’
• Mickey Mouse scurries into culture wars trap as Hollywood battles anti-abortion campaign
• John Legend on abortion law boycotts: ‘Money talks’
• Human Action by Ludwig Von Mises
• Do State Corporate Tax Incentives Create Jobs? Quasi-experimental Evidence from the Entertainment Industry