States pulling tax breaks

Giveaways aren't all that they're cracked up to be, especially in tough times. From the WSJ:

In this year's budget proposal, New Jersey Gov. Chris Christie, a Republican elected last year promising to bring fiscal austerity in the Garden State, outlined broad spending cuts including reductions in school spending and less aid to townships. But Mr. Christie's plan also suggests the state end tax credits for film and television production, $15 million of which were handed out last year. Mr. Christie's budget proposal also suspends an income-tax revenue-sharing program that provides $100 million a year to development projects in poorer urban areas.

Note the recommendation to end tax credits for film and TV production. Officials in other states are considering similar cuts. It's not a huge surprise given that the investment returns are not turning out to be as strong as initially advertised (see my Los Angeles magazine piece). Not to sound like a broken record, but the concern about runaway production has been largely misplaced.