{"id":1468,"date":"2014-08-18T16:57:42","date_gmt":"2014-08-18T23:57:42","guid":{"rendered":"http:\/\/www.artsjournal.com\/worth\/?p=1468"},"modified":"2014-08-18T16:57:42","modified_gmt":"2014-08-18T23:57:42","slug":"doras-amazing-tax-credit-adventure","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/worth\/2014\/08\/doras-amazing-tax-credit-adventure\/","title":{"rendered":"Dora’s amazing tax credit adventure"},"content":{"rendered":"

\"indeed\"<\/a>The New York Times<\/em> Arts page reviews<\/a> the new adventure of Dora the Explorer, now a little older, and starring in ‘Dora and Friends: Into the City!’, which apparently looks pretty suburban. And Dora’s talking backpack is full of dollars, courtesy of New York state taxpayers.<\/p>\n

Variety<\/em> reports<\/a>:<\/p>\n

\n

While states offering tax credits for filmmaking usually have their sights set on drawing movies that will showcase their locales, there is an increasing battle to draw post-production work, particularly in music scoring, animation and visual effects, as other countries like Canada offer generous subsidies to win the business. In California, where musicians and visual effects artists have been particularly hurt by the flight of production, a coalition of studio and union officials are\u00a0pushing for legislation<\/a>\u00a0to expand the state\u2019s incentive program with provisions to retain certain types of post-production work.<\/p>\n

New York\u2019s Empire State Development cited \u201cDora\u201d as spending $1 million in post-production costs, hiring 80 residents and generating $5 million in spending on local New York vendors.<\/p>\n

In 2012, Gov.\u00a0Andrew Cuomo<\/a>\u00a0signed legislation expanding the state\u2019s tax credit for post-production from 10% to 30%, for work in the New York metro area, and from 10% to 35%, for work in upstate New York. The state also lowered the post-production threshold for visual effects and animation on qualified expenses from 75% to 20%, or $3 million of the total animation budget, whichever is lower.<\/p>\n<\/blockquote>\n

The details of the tax credit plan are here<\/a>. And this<\/a> is what Empire State Development had to say about Dora. Note that the claim is for 10<\/em> full-time jobs, though 70 others were hired in some other way.<\/p>\n

How $1 million spent in post-production generates $5 million in spending on local vendors is a mystery; I have no idea how the development authority came up with such a large multiplier (and Variety<\/em>, to its discredit, does not question the figure at all, it simply reports it).<\/p>\n

And finally, as I have written before<\/a>, the economic benefits of such schemes are extremely dubious. Giving away almost a third of the post-production costs in tax credits for a corporate cartoon show, in order to draw skilled technicians out of other<\/em> employment into this<\/em> employment, has no external benefits at all. And these are real costs, that must be covered in higher taxes on other, unfavored businesses or residents, or cuts in services. Oh, man!<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

The New York Times Arts page reviews the new adventure of Dora the Explorer, now a little older, and starring in ‘Dora and Friends: Into the City!’, which apparently looks pretty suburban. And Dora’s talking backpack is full of dollars, courtesy of New York state taxpayers. Variety reports: While states offering tax credits for filmmaking […]<\/p>\n","protected":false},"author":3,"featured_media":1470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26],"tags":[],"class_list":{"0":"post-1468","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-issues","8":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/08\/swiper.png","jetpack_shortlink":"https:\/\/wp.me\/p3dIW5-nG","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":696,"url":"https:\/\/www.artsjournal.com\/worth\/2013\/04\/internet-sales-should-be-taxed\/","url_meta":{"origin":1468,"position":0},"title":"Internet sales should be taxed","author":"Michael Rushton","date":"April 21, 2013","format":false,"excerpt":"The Washington Post reports that the Senate is soon to vote on the issue of sales taxes on goods sold over the internet: The Senate is planning to vote on a bill as soon as Monday that would give states the authority to collect sales taxes on all Internet purchases,\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"new shoes!","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/04\/package_from_zappos-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1570,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/10\/tax-deductions-for-artists\/","url_meta":{"origin":1468,"position":1},"title":"Tax deductions for artists (updated)","author":"Michael Rushton","date":"October 7, 2014","format":false,"excerpt":"The New York Times reports on a court case involving whether an artist working for salary as teaching faculty can claim tax deductions of artist's expenses (for supplies, travel, meals, etc) in excess of profits earned on sales of art. My understanding of this (tax people please correct me if\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"operates at a loss","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/Goat.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1577,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/10\/art-and-the-estate-tax\/","url_meta":{"origin":1468,"position":2},"title":"Art and the estate tax (updated, again)","author":"Michael Rushton","date":"October 7, 2014","format":false,"excerpt":"The New York Times reports on the Elkins case, involving a victory for a wealthy family in a legal fight with the IRS on estate tax owing on a valuable art collection. This is the quote that caught my attention: \u201cMy genuine view is this is a great result for\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"'cause I'm the taxman...","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/IRS.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/IRS.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/IRS.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":1533,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/09\/how-should-we-subsidize-charitable-giving-to-the-arts\/","url_meta":{"origin":1468,"position":3},"title":"How should we subsidize charitable giving to the arts?","author":"Michael Rushton","date":"September 22, 2014","format":false,"excerpt":"In the New York Times, Nicholas Kristof and Sheryl WuDunn write: Moms in poverty often live in stressful homes while juggling a thousand challenges, and they are disproportionately likely to be teenagers, without a partner to help out. A baby in such an environment is more likely to grow up\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"the state really ought to pay for this","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/09\/nurse-with-baby.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/09\/nurse-with-baby.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/09\/nurse-with-baby.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/09\/nurse-with-baby.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/09\/nurse-with-baby.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/09\/nurse-with-baby.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":1756,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/12\/should-nonprofit-museums-have-free-admission-because-they-are-tax-exempt\/","url_meta":{"origin":1468,"position":4},"title":"Should nonprofit museums have free admission because they are tax exempt?","author":"Michael Rushton","date":"December 20, 2014","format":false,"excerpt":"No. But Christopher Knight\u00a0at the LA Times thinks they should: Yes, every art museum needs multiple sources of revenue. It does cost money to run the place. However, because they are tax exempt, art museums already count the public as a major, indirect source of revenue. Required admission fees add\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"And everybody should have one","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/12\/pony.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/12\/pony.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/12\/pony.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/12\/pony.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/12\/pony.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":646,"url":"https:\/\/www.artsjournal.com\/worth\/2013\/04\/limiting-the-charitable-deduction\/","url_meta":{"origin":1468,"position":5},"title":"Limiting the charitable deduction","author":"Michael Rushton","date":"April 11, 2013","format":false,"excerpt":"As my blog-neighbor Lee Rosenbaum reports, the proposed 2014 budget from the White House would cap the tax benefit for charitable donations at 28%. In the U.S., where donations are deducted from the income tax base, the actual rate at which your donation is subsidized is your marginal tax rate,\u2026","rel":"","context":"With 1 comment","block_context":{"text":"With 1 comment","link":"https:\/\/www.artsjournal.com\/worth\/2013\/04\/limiting-the-charitable-deduction\/#comments"},"img":{"alt_text":"marginal rates","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/04\/1040of1913-219x300.gif?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/1468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/comments?post=1468"}],"version-history":[{"count":0,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/1468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media\/1470"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media?parent=1468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/categories?post=1468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/tags?post=1468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}