Georgia’s State government is pretty much like every other government. They love the idea of picking winners and losers. Whether or not your business or sector is a winner or a loser is going to depend on a lot of things, but it will not depend on being equal under the law.
Georgia Musical Investment Act
A BILL to be entitled an Act to amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, and computation of and exemptions from state income taxes, so as to create an income tax credit for certain expenditures by a production company related to certain state certified musical or theatrical productions or recorded musical performances; to provide for rules and regulations and an application process related to such income tax credit; to provide for certain conditions and limitations; to provide for definitions; to provide a short title; to provide for related matters; to repeal conflicting laws; and for other purposes.
We apparently need to offer tax credits to production companies to the tune of 15% for Production Companies to come to the State of Georgia. And if they locate into one of the 100 poorest counties, they could get an additional 10% credit.
And while the tax credit is limited to $5 million the first year, it will expand to $15 million by year three.
If Georgia politicians want a better business environment, then why do they not lower taxes for ALL Georgia businesses? What game are we playing here?
Is the music industry in crisis? Is there a reason that they need additional support from the State of Georgia? Frankly, it doesn’t matter.
When government picks winners, they also pick losers. Government should not be in that job.
Supply and demand should pic winners and losers. And under the law, it should not matter if you have started a Music business or a Automotive Repair Shop. Each should be treated equally.
It’s no wonder the American Public looks at government with disdain. So much time and energy is spent attempting to engineer outcomes when they should only be administering the framework, and not determining outcomes.
By the way, it passed 157-11 in the Georgia House. Now it goes before the Senate. Let’s hope they have a little more common sense.