100% tariffs on movies made outside of the USA is on the horizon. But how would it work?The American film industry has had a problem. Everyone is offering great Tax incentives to attract films to be made in their countries. This on paper is designed to combat the issue.But how do you tariff a movie?Big movies are by their very nature international. Special effects are farmed out across the globe. Many movies shoot in different countries because the script calls for a variety of... Read more
100% tariffs on movies made outside of the USA is on the horizon. But how would it work?
The American film industry has had a problem. Everyone is offering great Tax incentives to attract films to be made in their countries. This on paper is designed to combat the issue.
But how do you tariff a movie?
Big movies are by their very nature international. Special effects are farmed out across the globe. Many movies shoot in different countries because the script calls for a variety of locations.
If the production company is American.. are these American movies.. or subject to tariffs?
Then.., What is being tariffed? The cost of making it? The box office receipts in America? Hollywood is notorious for ‘Hollywood accounting’ and have been making the biggest movies have paper losses for years. They managed to claim that Starwars:Return of the Jedi was a financial loss in order to not pay tax and profit sharing agreements.
They are experts in this.. and if it’s profits that are tariffed, I expect they will find a simple loophole.
And then you do have the issue of limited cinematic runs.
Are they only tariffed on cinema time? Or on streaming? How would you even calculate the revenue a movie brings in via a subscription model like Netflix?
This could all get super complicated very quickly. If it does it will potentially keep accountants busy. But will it bring movies back to the USA? I’m not so sure.
The American film industry has had a problem. Everyone is offering great Tax incentives to attract films to be made in their countries. This on paper is designed to combat the issue.
But how do you tariff a movie?
Big movies are by their very nature international. Special effects are farmed out across the globe. Many movies shoot in different countries because the script calls for a variety of locations.
If the production company is American.. are these American movies.. or subject to tariffs?
Then.., What is being tariffed? The cost of making it? The box office receipts in America? Hollywood is notorious for ‘Hollywood accounting’ and have been making the biggest movies have paper losses for years. They managed to claim that Starwars:Return of the Jedi was a financial loss in order to not pay tax and profit sharing agreements.
They are experts in this.. and if it’s profits that are tariffed, I expect they will find a simple loophole.
And then you do have the issue of limited cinematic runs.
Are they only tariffed on cinema time? Or on streaming? How would you even calculate the revenue a movie brings in via a subscription model like Netflix?
This could all get super complicated very quickly. If it does it will potentially keep accountants busy. But will it bring movies back to the USA? I’m not so sure.
