Friday, February 27, 2009

TAX CREDITS AND BILL C-10: What it's really all about


Ok, I've been following the development and discussion around the Government's intention to pass Bill C-10 into law.

After having watched numerous news reports and YouTube Videos on the subject I've come to this conclusion:

-Politicians and "Religious" Lobbyists should really think before speaking or getting involved in legislation regarding the arts.
-Actors and Artists in general should not be allowed to comment on legislation regarding the Film & Television Industry.

Here's the skinny: Bill C-10 is all about economics - not censorship or free expression. The legislation's aim is to essentially "bully" Canadian Producers into stop making Art Films - plain and simple. The Government is not planning to apply the provisions of Bill C-10 to American Productions applying for TAX CREDITS, but only to Canadian Production Companies doing so.

When asked why they responded, "Well, American Productions create jobs."

Let me clarify what TAX CREDITS really are for those artists who find it necessary to ho-hum when asked about Bill C-10 and resort to calling it state sponsored censorship;

Tax Credits were set in place by provincial governments to "promote" film & tv production in their province, to give producers an added "incentive" to spend money on local crews - alas, what everyone who is commenting on this bill fail to state is that TAX CREDITS are calculated and awarded for labor expenditures. Namely, jobs created for provincial residents. Tax Credits are not a form of government funding, they are built into the income taxation system: enter Revenue Canada.

Essentially what legislators propose to do is not honor labor expenditures submitted to Revenue Canada by Production Companies in Canada whose product doesn't conform to what a panel (probably chaired by Heritage Canada) decides is contrary or offensive to public taste and decency.

Listen up artists, it's not all about you and art - it is all about taxation. Every film or television show you watch was, at some point prior to principal photography, incorporated. It is obligated, by law, to report earnings and expenditures to Revenue Canada for taxation purposes. Therefore, the problem is not so much a question of censorship but of fiscal blackmail on the part of the government.

Producers are obligated to withold taxes for their cast/crew, obligated to pay fringe benefits for cast/crew, obligated to report earnings and losses - why? Because that's the law and it protects Canadian workers.

If the government started denying the benefits of tax credits to the film industry on a case-by-case basis they should do the same for all other "corporations"; toy companies, publishers, food companies, the automotive industry, any industry that employs local workers. Every company and corporation is subject to taxation. Why should film and television companies be singled out and punished for employing Canadians?

I invite everyone, not only industry people, to write letters, make YouTube videos, write in your blogs and really examine what's going on on Parliament Hill.

This issue is not about the government funding questionable or offensive material - the criminal code and the broadcaster standards act are already factors determining the financial participation of government in funding films and television programs.

Tax Credits are incentives put in place to promote labor expenditures (i.e. JOB CREATION) on the part of Production Companies (foreign and domestic) in Canada.

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