Hollywood requests Trump to implement tax incentive
Hollywood studios and unions representing movie workers joined forces Monday to urge US President Donald Trump to give tax breaks to US-made films.
The joint letter, which was also signed by Jon Voight and Sylvester Stallone — two of Trump's "ambassadors" to Hollywood — comes days after the Republican president said he wanted to impose 100 percent tariffs on foreign films in a bid to help the domestic industry.
The letter thanks Trump "for the support you have shown our industry," and for drawing attention to production fleeing overseas. But it makes no mention of Trump's tariff plan, a proposal that was met with bafflement across the industry, with observers saying they had no idea how such a tax might work.
"Currently, more than 80 countries offer production tax incentives and as a result, numerous productions that could have been shot in America have instead located elsewhere," says the letter.
"Returning more production to the United States will require a national approach and broad-based policy solutions, including longer term initiatives such as implementing a federal film and television tax incentive."
The idea of a federal tax credit scheme was also suggested last week by California Governor Gavin Newsom.
The letter, from the Motion Picture Association — an umbrella grouping for major studios and streamers — and unions representing directors, actors and writers, suggests a number of tax deductions that would make film-making cheaper.
"A domestic production incentive would make the US market more competitive and able to retain and return high-paying jobs tied to film and television productions — and the use of this deduction has historically promoted significant economic and job growth," it says.
Tariffs on 'foreign' films
America's film industry has gradually moved away from its traditional home in and around Hollywood as production has shifted to cheaper locations.
The number of shooting days in Los Angeles reached an all-time low last year — lower even than during the Covid-19 pandemic, when filming shut down completely.
Fewer than one in five films or TV series broadcast in the United States was produced in California, according to FilmLA, an organization that tracks the movie industry.
The loss of that production has a significant economic impact. According to the letter to Trump, each day a film shoots on location it spends more than $670,000, and employs nearly 1,500 people.
On May 4, Trump declared on social media that "the movie industry in America is dying a very fast death."
He said he had told the Department of Commerce and the Office of the US Trade Representative to levy a 100 per cent tariff "on any and all movies coming into our country that are produced in foreign lands." afp
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Vietnam Q2 GDP growth quickens on strong exports, US trade deal brightens outlook
HANOI: Vietnam's economy grew at a faster pace in the second quarter of this year led by strong exports, in an encouraging sign just days after U.S. President Donald Trump said he would place lower-than-threatened 20% tariffs on many Vietnamese products. Concerns over the Southeast Asian manufacturing hub's outlook had been growing in the run up to the trade deal announced on Wednesday, particularly as the United States is Vietnam's biggest export market. Gross domestic product growth in the April-June quarter accelerated to 7.96% year-on-year, from the 6.93% in the first quarter, government data showed on Saturday. It was just short of Hanoi's full-year growth target of at least 8%. 'Economic performance in the first half of this year was positive and close to our target amid global and regional economic uncertainties,' the National Statistics Office said. Exports were a bright spot in the last quarter, rising 18.0% to $116.93 billion from a year earlier, while imports were up 18.8% at $112.52 billion, translating into a trade surplus of $4.41 billion, the NSO data showed. Trump says US struck trade deal with Vietnam Industrial production in the period rose 10.3%, while June consumer prices rose 3.57%. Trump announced on Wednesday the United States and Vietnam reached a trade deal, under which Vietnamese goods would face a 20% tariff, with trans-shipments from third countries through Vietnam also facing a 40% levy. Vietnam could import U.S. products with a zero percent tariff. The tariff rates were lower than an initial 46% rate threatened by Trump in April. Vietnam hailed the deal as a boost for business and said negotiators were working to finalise details, as business groups awaited clarity on the finer points to assess the impact of the new tariffs. The United States is the largest export market for Vietnam, a regional manufacturing hub housing several multinational companies such as Samsung Electronics and Foxconn. The United States recorded a trade deficit of $123 billion with Vietnam last year, one of its highest globally. Vietnam is also home to several Chinese companies, which analysts said are likely the main targets for the 40% tariff on trans-shipments. China is Vietnam's largest two-way trading partner on which it relies heavily for components and materials for its manufacturing industries. Fitch Solutions said in a note on Friday that Vietnam's exports and investment will remain strong for the rest of the year and signalled upside risks for its 2025 GDP growth forecast of 6.4%. 'With the new 20% tariff, we think the government will speed up industrial upgrading and shift exports from low-margin goods to higher value-added products such as semiconductors,' it said in a note. Dominic Scriven, founder and chairman of investment firm Dragon Capital, said the trade deal is 'net-positive' and the potential GDP hit is less severe than feared. 'With external trade risk now moderating, attention can return to the country's core growth engine, the domestic and private sector economy,' he said.
Business Recorder
2 hours ago
- Business Recorder
Trump says Iran has not agreed to inspections, give up enrichment
U.S. President Donald Trump said on Friday that Iran had not agreed to inspections of its nuclear program or to give up enriching uranium. He told reporters aboard Air Force One that he believed Tehran's nuclear program had been set back permanently although Iran could restart it at a different location. Trump said he would discuss Iran with Israeli Prime Minister Benjamin Netanyahu when he visits the White House on Monday. 'I would say it's set back permanently,' Trump said as he traveled to New Jersey after an Independence Day celebration at the White House. 'I would think they'd have to start at a different location. And if they did start, it would be a problem.' Nuclear inspectors have left Iran: UN watchdog Trump said he would not allow Tehran to resume its nuclear program, adding that Iran did want to meet with him. The U.N. nuclear watchdog said on Friday it had pulled its last remaining inspectors from Iran as a standoff deepens over their return to the country's nuclear facilities bombed by the United States and Israel. The U.S. and Israel say Iran was enriching uranium to build nuclear weapons. Tehran insists its nuclear program is for peaceful purposes. Israel launched its first military strikes on Iran's nuclear sites in a 12-day war with the Islamic Republic three weeks ago. The International Atomic Energy Agency's inspectors have not been able to inspect Iran's facilities since then, even though IAEA chief Rafael Grossi has said that is his top priority. Iran's parliament has passed a law suspending cooperation with the IAEA until the safety of its nuclear facilities can be guaranteed. While the IAEA says Iran has not yet formally informed it of any suspension, it is unclear when the agency's inspectors will be able to return to Iran. US imposes new curbs targeting Iran oil trade, Hezbollah Iran has accused the agency of effectively paving the way for the bombings by issuing a damning report on May 31 that led to a resolution by the IAEA's 35-nation Board of Governors declaring Iran in breach of its non-proliferation obligations. The U.S. and Israeli military strikes either destroyed or badly damaged Iran's three uranium enrichment sites. But it was less clear what has happened to much of Iran's nine tons of enriched uranium, especially the more than 400 kg (880 pounds) enriched to up to 60% purity, a short step from weapons grade.
Business Recorder
2 hours ago
- Business Recorder
Trump says Ukraine will need Patriot missiles for its defense, chides Putin
WASHINGTON/KYIV: US President Donald Trump said Ukraine would need Patriot missiles for its defenses, after speaking with President Volodymyr Zelenskiy on Friday, and voiced frustration over Russian President Vladimir Putin's failure to end the fighting. Trump told reporters aboard Air Force One that he had a good call with Zelenskiy, repeating that he was 'very unhappy' about his call with Putin a day earlier, given what he called the Russian leader's refusal to work on a ceasefire. Asked whether the United States would agree to supply more Patriot missiles to Ukraine, as requested by Zelenskiy, Trump said: 'They're going to need them for defense… They're going to need something because they're being hit pretty hard.' Trump touted the efficacy of the Patriot missiles, calling the weapon 'pretty amazing.' Asked about the prospects for a ceasefire, Trump said, 'It's a very tough situation… I was very unhappy with my call with President Putin. He wants to go all the way, just keep killing people - it's no good.' Zelenskiy said he had agreed to work on increasing Kyiv's capability to 'defend the sky' as Russian attacks escalate, adding in a message on Telegram that he discussed joint defense production, as well as joint purchases and investments with the U.S. leader. Europe must 'step up' as US halts some arms to Ukraine: EU chief Ukraine has been asking Washington to sell it more Patriot missiles and systems that it sees as key to defending its cities from intensifying Russian air strikes. A decision by Washington to halt some shipments of weapons to Ukraine prompted warnings by Kyiv that the move would weaken its ability to defend against Russia's airstrikes and battlefield advances. Germany said it is in talks on buying Patriot air defense systems to bridge the gap. A source briefed on the Trump-Zelenskiy call told Reuters they were optimistic that supplies of Patriot missiles couldresume after what they called a 'very good' conversation between the presidents. Russia pummels Kyiv Trump said he also spoke with German Chancellor Friedrich Merz about Ukraine's request for Patriot missiles but that nodecision had been made to supply the advanced missiles. U.S. news outlet Axios reported, citing unnamed sources, that the call lasted around 40 minutes and that Trump told Zelenskiy he would check what U.S. weapons due to be sent to Ukraine, if any, had been put on hold. Zelenskiy, in his nightly video address, said he and Trump had agreed to 'arrange a meeting between our teams to strengthen air defenses. Germany considering buying US air defence systems for Ukraine 'We had a very detailed discussion on joint production. We need it, America needs it.' The conversation came a day after Trump said he had a disappointing call with Putin. Russia pummeled Kyiv with the largest drone attack of the war across the capital hours after Trump's conversation with Putin on Thursday. Zelenskiy called the attack 'deliberately massive and cynical.' Kyiv in the past received Patriot batteries and ammunition from the U.S. in the form of aid under then-President Joe Biden. Trump criticized him for sending weapons to Ukraine without getting anything in return, and since taking office has overseen a dramatic shake-up of relations with Kyiv.
