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Tax Flight Is a Myth Higher State Taxes Bring More Revenue, Not More Migration Attacks on sorely-needed increases in state tax revenues often include the unproven claim that tax hikes will drive large numbers of households — particularly the most affluent — to other states. The same claim also is used to justify new tax cuts. Compelling evidence shows that this claim is false.
Like a Hollywood fantasy, claims that tax subsidies for film and TV productions — which nearly every state has adopted in recent years — are cost-effective tools of job and income creation are more fiction than fact. In the harsh light of reality, film subsidies offer little bang for the buck. State film subsidies are costly to states and generous to movie producers. Today, 43 states offer them, compared to only a handful in 2002.
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