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Ah yes, thank you for gutting that tax credit. Yes, you know the one. The one that employed my 24-year-old partner. The partner that I, 25, moved from Manitoba to Nova Scotia to be with. We were looking at buying a house. We were looking at starting a family. We were 40-65 years worth of guaranteed provincial tax income just waiting to happen. We “were”. Just like our jobs “were”. And now, just like the industries that formerly employed us, we “are” gone. —The Youth
This article appears in Apr 9-15, 2015.
No Lights. No Camera. No Action. CUT!
Bye!
^^^
To put this in context, I am no longer willing to pay your salary.
The liberals just took the credit and subsidies they were giving the industry and gave it to RBC for putting that call centre or whatever new thing they are putting here in the next year or so. We may lose Trailer Park Boys but we’re gaining RBC and a few $14/h jobs till they pull out in 10 years when the contract expires and the credit switches again.
Exit stage left….
Years ago I used to think it was great to have a fledgling film industry in Nova Scotia. The problem of course, is that it has never grown beyond being fledgling. It’s like an acquaintance’s daughter who was spoiled in her younger years and was never expected to have a plan to become independent. Now her parents are still paying her way as an adult for fear that something bad might happen to her. I don’t think they have done her a favour.
Much the same, we are being blackmailed by the film industry just like other industries have in the past. Pay up or we are leaving town. And there is no plan to ever become independent or even less dependent. The film staff are essentially now permanent civil servants.
I can understand loaning money to new startup businesses fro the first few years but this giving in to every industry that threatens to leave if the government doesn’t pay up is setting a very bad precedent. i don’t care what industry it is.
So, OB, can you point us to the local film industry’s long range plan to become self sustaining and independent? No? I didn’t think so.
GUTTING THAT TAX CREDIT
“Ah yes, thank you for gutting that tax credit. Yes, you know the one. The one that employed my 24-year-old partner.” The Youth
Well no, I don’t know the one but how is anyone employed by a tax credit? One is employed by a business that receives a tax credit – it is standard government practice to boost local employment – so there must have been a reason why the tax credit was “gutted.” What was that business? What was that reason? Otherwise it appears that your partner was simply living off the Nova Scotian taxpayer. More details please.
A pleasure as always,
Cheerio!
Oh but they did live off that “tax credit”, MM. But what they fail to tell you is that they were greedy little piggies, slopping at the taxpayer trough. Through a poorly managed system – abetted by the NDP – they lived like kings while the common taxpayer was left to eat cake.
The tax credit was treated like a grant; free money. These companies didn’t even employ people in Nova Scotia but applied the “tax credit” to their wage expenses. The government at the time turned a blind eye to this practice. And then we had an election…
With a new government and new budget came a correction of the rules; no longer may they use this tax credit as a grant. and like the greedy little piggies they are, they are squealing.
Squeal piggies – the feast is over!
Fuck off, regs. Nothing to say about RBC? Do fuck off.
^^^ “Nothing to say about RBC?”
When I said, “giving in to every industry that threatens to leave if the government doesn’t pay up is setting a very bad precedent. i don’t care what industry it is. ” , that includes RBC asking for money to come here with their call centre. If every province and state refused to give in to these very profitable companies and industries (including the film business) eventually they would stop expecting to be given special deals. We have created an expectation that needs to be eliminated.
Halifax should be able to compete on it’s relatively low cost of doing business (real estate and salaries) and its’ highly educated workforce. We need to promote that rather than desperately throwing money at profitable businesses.
Knowingly abused means they knew they were abusing a system, such being the tax credit used as a grant-not a tax credit.
Funding private, for-profit business is not good for the province; we don’t have endless amounts of money to give out.
I am not afraid of women; I find them mostly useless (personally) and annoying (generally).
I am not afraid of most things as I have had to confront many fears. I comment on things that annoy me, amuse me or please me.
You don’t have to like what I have to say nor do you have to agree with it. But if you wish to argue a point, may I suggest you be informed about the topic first?
Could you cite reputable and accessible sources to the effect that the film industry “knowingly abused” tax credits? Could you do it now?
Yes MM, I can.
Might I suggest that you:
Tune into our local news; listen closely; digest; comprehend; understand; become informed; stop being a troll.
Maybe you should go back to school?
Film tax credits are standard practice, not only in North America, but globally. The reason they exist is that they generate a lot of revenue, both through taxes and through economic spinoffs, for example money spent on local businesses for things like food, gas, car rentals, hotels, locations rentals, construction materials, props, etc.
A friend of mine put it this way:
“ll explain the issue like this; The government is a body designed to ‘take care’ of Nova Scotia. The Government pays 22 million and the people and businesses of the province get 130 million. The government doesn’t like that it’s not getting a direct return on their 22 million (although it’s generating economic activity by the people of the province), but the people of the province are getting that money (and a high rate of it going diretcly into workers pockets).
Every province that has taken away or neutered it’s tax credit has immediately regretted and resinstated it, only to have the damage already done.”
Don’t be fooled by the Liberals’ misinformation- this decision is going to hurt not only the thousands directly employed in this industry, it is going to hurt the province. And it’s not about the industry “blackmailing” anyone- if there is no work here, people will be FORCED to leave. And we don’t want to.
So don’t leave. But stop asking me to pay your wages, okay?
And to say that “these companies didn’t even employ people in Nova Scotia but applied the “tax credit” to their wage expenses” is 100% false. The credit applies only to permanent Nova Scotia residents. And we have thousands of those who are highly skilled in their areas- actors, gaffers, grips, makeup artists, etc, etc.
I suppose in some parallel universe where things were different, yes, maybe tax credits do not exist, and therefore are not part of the equation. But we don’t. Reality is that in order to compete with the many many other places that WANT to attract these productions, we must have one. Does anyone actually believe that now NS has hamstrung our FTC, that the whole world will follow our amazing example? Ridiculous. And to destroy the livelihood of thousands for some libertarian bullshit is absolutely reprehensible.
We need an independent audit of the true numbers involved in this situation. There has not been one. WHY?
We already know that the gov. did not include the show “Haven” in their sketchy review- a show that has been shooting in Chester NS for nearly five years now. Industry estimates show a contribution to NS’s economy of $50 million! Is Chester not part of NS all of a sudden?
The problem I see with a tax credit, that is based on the reimbursement of as high percentage of wages paid to workers, being used as collateral for financing their projects is there is no reason to reign in wages. If higher wages = more money, then another unionized industry gets to play fast and loose with tax money, regardless of “economic spinoffs”. I have a hard time believing either side doesn’t have valid arguments. I think, with a promise from the Liberals to stay the course with the credit system, there should have been some consultation with the film industry on how these system changes could be a little more gently and strategically applied. In all seriousness, no kiss, no lube, just BAM!!!
Continue with your delusions and misinformation geekchick. Who cares about the other issues you bring up? You’re only trying to cloud the fact the film industry was collecting money to which it was technically not entitled; that is what is at issue. The credit still exists and will be administered as such, and not as an open bar.
STEPHENHITFD: Interesting point about the wages, not something I had thought of, and not something I know a ton about, but I guess I can say that there has certainly not been an unusual rise in unionized wages since the tax credit was put into place- like all unions, wages are negotiated and regulated in accordance with inflation and all that. At least with my union. I’ll look into it.
I agree that the sudden changes are a huge part of the problem- and in fact since the FTC as it stands (or stood, I suppose) was already written into this year’s budget. Why would they not see the year through (and therefore our main shooting season) with the budget as planned, rather than the insane and seemingly arbitrary July 1st date? Very odd and unnecessarily damaging- especially for something that is only about 0.1% of their budget.
As for Jesus Sonovabitch… I’m not quite sure what to do with you. You accuse me of spreading misinformation? How odd, when it seems clear to me that you have no idea what you are talking about. You keep saying something about film industry collecting money to which it was “technically not entitled”, and other things of this nature. Nowhere have I seen any kind of information regarding any kind of shady dealings within the industry, except from you, a random (troll? I’m not sure yet) dude on the internet. I would suggest you follow your own advice, and become informed.
Also, “other issues”? I guess you’re right, I should probably stop with all the relevant facts and information. How silly of me. “Who cares” about those? Oh wait. Thousands of people.
Here’s a thing- the industry is calling for an independent audit of the numbers involved in all this. The province has (so far) refused. I came across this interview with Jerry West on Information Morning, in which he said:
“there’s some real disagreement over the finance department’s numbers. I went over the fact sheet that the department produced with the accountants, and they say some of the figures are improbable, and others are mathematically impossible. For example, if you work out the average subsidy for last year, according to the fact sheet, it works out to 67% of labour costs. If you remember, the labour subsidy is supposed to be a maximum of 65%, so the average, it’s hard to make it 67%. Also, the department says it only gets $6 million in taxes back in terms of corporate consumption and personal income tax, or, $1 back for every $4 it pays out. That also doesn’t add up. even just using the numbers on the department’s own fact sheet. I asked the finance department for two days to walk me through how they got their numbers- so far, they have not done that.”
http://www.cbc.ca/player/AudioMobile/Infor…
MM, you’re a grown man; please stop trolling. You’re funny when you’re not trolling.
J S , you have never paid a motion picture employees wages. No Nova Scotian ever has.
The so called tax credit, is money paid back to a Producer, who has already spent it here on Nova Scotian worker.That worker pays a shit load of taxes on 100% of what he earns, a project may see 1/3 of its budget be labor, not all that labor is done by Nova Scotians, not a Nova Scotian…no rebate.
So these people come here with 6 million, spend it, get maybe 1 million back in rebate, after 2 audits & everything checked & it takes 18 months to 2 years to get it.
But If I could get someone to hire my company & pay me 6 million dollars if I rebate him for the Nova Scotian labor part ….. I and any business man with a half a brain would sign that contract in a second …because 5 million would be staying with me !
J S must have been a Provincial finance employee, if not he would probably be as smart as any of them !
Haha! Well said, More.
TRYING AGAIN
RSVP Jesus Sonofabitch (4/17. 3:36PM)
Well, there’s a second delete on my reply to Jesus Sonofabitch but I wasn’t trolling. Do you have connections in high places? Let’s see if this is deleted. If so I’m out.
Bye!
Gosh, my comment (8:01AM) wasn’t deleted so it appears that I’m not out after all. I guess the reason it wasn’t deleted is based on my enormous value on this site. So, I’ll whip up to the latest bitches and offer my usual penetrating insights.
I would SURE like a big tax credit…i paid 32k in income tax this past fiscal year. would certainly be nice to see a lot more of my money, especially since i have contributed a huge chunk of EI premiums i could never qualify to receive(damn laws) i guess the only hope i have is for retirement at maximum 50% pension in 13 years…fuck me id LOVE a big tax credit.