Aug 15, 2006

HEA 1380 Various Economic Development Areas

This piece of special interest legislation should offend Libertarians at many points throughout its incoherent and random array of handouts. The bill, authored by Kokomo Republican John Smith, provides that certain transactions occurring after December 31, 2006, and before January 1, 2009, involving tangible personal property are exempt from sales tax if the person acquiring the property acquires it for the person’s direct use in the production of a motion picture. It also removes the January 1, 2008, deadline for making investments in machinery, equipment, or special purpose buildings used to make motion pictures or audio productions that are eligible for the Hoosier Business Investment Tax Credit. Finally, it further extends the deadline by which an investment must be made in order to be eligible for the HBITC. It begs the question, “Which friend or campaign donor of which legislator wants to invest in a movie so badly that he/she believes himself/herself to be entitled to a taxpayer subsidy and which movie is it?” That particular movie project sn't the only recipient of corporate welfare. The bill also shovels money towards someone’s special interest by allowing that farm mutual insurance companies, but not other companies -- even other insurance companies -- may elect taxation under the gross premium tax. Someone must also have an interest in a farmer’s insurance company.

Author: John Smith
Sponsor: David C. Ford

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