Wednesday, February 4, 2009

More than meets the movie eyes

So I see the Detroit area and I See we are looking to be Hollywood's step sister with the opening of not one but two film studios. Much of this is a direct result - gasp! - tax breaks offered to the industry. The papers are reporting close to 6000 new jobs as a result of it.

Follow along if you will. You offer tax breaks and you add jobs. Adding jobs adds to the state's tax base. That means the government has more money than they did before. If they did not offer the film industry such tax advantages, they probably would have not come to Michigan. That would mean there would not be 6000 new jobs ans tax revenue.

Class - If we were to use logic, what should Michigan do across the board with different business sectors? Why is something so damn easy so hard to do?

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