VICTOR JOECKS: Trump shouldn’t bail out Hollywood with taxpayer handouts

Victor Joecks: Trump Shouldn’t Bail Out Hollywood with Taxpayer Handouts Providing governmental enemies with handouts is a flawed argument and politically unwise. On Monday, President Donald Trump announced that he wants a bailout for Hollywood (https://truthsocial.com/@realDonaldTrump/posts/117192406705033763). He urged Congress to adopt “a Federal Production Incentive to make Entertainment Jobs successful America.” Trump expressed frustration that excessive activity has shifted away from California. He declared on Truth Social, “Hollywood is simply a Complete and Total Disaster!” and added, “Despite the name, it is getting precise small work. There is nary inducement to beryllium there, and it is hurting California precise badly.” Data show that television and movie production in California has declined. In 2019, the state averaged roughly 132,000 workers in the film and TV sector. Employment climbed to about 150,000 in 2022 but fell to just over 100,000 in 2024. This drop exceeds a broader industry slowdown. In 2010, California accounted for 54 percent of the nation’s film‑related employment; by 2023 that share had slipped to 46 percent. Some of the difficulty stems from state policy. The 2023 writers’ strike noticeably cut production jobs and affected California more severely than other regions. Even studios complain that California remains mired in red tape. Attorney General Rob Bonta, aided by part‑time Nevada resident Aaron Ford, is seeking to block Paramount’s acquisition of Warner Bros. Competition from other jurisdictions intensifies the pressure. Georgia, for example, provides transferable tax credits worth up to 30 percent of qualifying expenditures. These credits can be sold for cash, effectively functioning as subsidies. Analyses indicate Georgia recoups only about 20 cents for every dollar spent on its film‑tax‑credit program. California responded by expanding its own film‑tax‑subsidy pool from $330 million to $750 million in 2025. Nevada avoided a similar fiscal risk last year when lawmakers narrowly rejected a film‑tax‑credit proposal. A May 2025 review by the Governor’s Office of Economic Development concluded that state and local governments would recover only 52 cents of each dollar allocated through such credits, based on the Summerlin Studios analysis. The modest return raises doubts about the wisdom of federal intervention. While Trump’s exact national‑level stance remains unclear, the prospect of a Hollywood bailout warrants caution. Government should refrain from picking economic winners and losers. If another state chooses to subsidize film productions with taxpayer money, the United States ought not to emulate that approach. Winning becomes difficult when the reward is a loss of tax revenue. The situation is especially puzzling given Hollywood’s frequent criticism of Trump and Republicans. Yet the president now contemplates directing possibly billions of dollars toward the industry. Deploying public funds to insulate left‑leaning entities from market forces is a dubious investment, as illustrated by recent trends in higher education. Trump should not extend handouts to Hollywood.