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(The Center Square) – The latest round of movie and TV tax credits is projected to keep thousands of good-paying jobs in California and boost the state\u2019s economy by $1.4 billion.<\/p>\n
That breaks down to $1 billion in qualified in-state spending and $629 million in qualified wages, said Gov. Gavin Newsom\u2019s office<\/a>. The word \u201cqualified\u201d refers to tax credits.<\/p>\n The office says 52 productions benefiting from the tax credits employ an estimated 8,900 cast and crew members and 46,400 background performers or \u201cextras.\u201d California is offering the tax credits as it competes with other places that offer credits for filming there, such as the Canadian cities of Toronto, Ontario, and Vancouver, British Columbia, and states such as Georgia, New York and New Mexico.<\/p>\n But economist Wayne Winegarden says tax credits aren\u2019t the answer.<\/p>\n Newsom more than doubled this year\u2019s California Film and TV Tax Credit program to $750 million from $330 million. The California Legislature approved that expansion in Assembly Bill 1138<\/a>, which Newsom signed it into law in July.<\/p>\n Winegarden said that money has to come from somewhere.<\/p>\n \u201cSanta Claus doesn\u2019t work in Sacramento,\u201d Winegarden said, referring to the state\u2019s capital.<\/p>\n \u201cHe [Newsom] is imposing taxes high enough to be able to transfer those resources,\u201d said Winegarden, director of the Center for Medical Economics and Innovation at Pasadena-based Pacific Research Institute.<\/p>\n Winegarden, a senior fellow in business and economics, also noted 8,900 cast and crew jobs for movie and TV productions isn\u2019t a large number for California. He added Newsom isn\u2019t creating those jobs.<\/p>\n \u201cThat\u2019s the problem,\u201d Winegarden told The Center Square. \u201cAny jobs he thinks he\u2019s creating, by definition, he\u2019s also destroying.<\/p>\n \u201cIf I took that money away from you and gave it to the movie industry, the movie industry is spending more, but you\u2019re spending less,\u201d Winegarden said. \u201cSo your grocer has less money. He\u2019s hiring fewer people. You\u2019re not buying cars from the car dealership, which hires fewer people. And it ripples through the economy in the same exact way.\u201d<\/p>\n A better approach is to create an environment less hostile to businesses in California, Winegarden said, citing the state\u2019s high taxes and costs for labor, housing and energy.<\/p>\n