Transcript
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Abe Greenwald (1:03)
Hope for the best, Expect the worst.
Christine Rosen (1:09)
Some pre champagne, some diapers no way.
John Podhoretz (1:14)
Of knowing which way it's going Hope for the best Expect the worst Hope for the best welcome to the Commentary Magazine daily podcast. Today is Tuesday, May 6, 2025. I'm John but Horitz, the editor of Commentary magazine. With me, as always, Executive Editor Abe Greenwald. Hi, Abe.
Abe Greenwald (1:35)
Hi, John.
John Podhoretz (1:37)
Social Commentary columnist Christine Rosen. Hi, Christine.
Seth Mandel (1:40)
Hi, John.
John Podhoretz (1:41)
And Senior Editor Seth Mandel. Hi, Seth.
Unknown Speaker (1:44)
Hi, John.
John Podhoretz (1:45)
So I think we'll very quickly dispense with or talk about and then dispense with the Trump plan to put 100% tariff on all movies made outside the United States. First of all, it's impossible to tell what it means that a movie is made outside the United States. They can be financed here, but film partially outside and partially here. And there's a lot of German tax incentives and tax shelters that mean that movies are incorporated outside the United States that you would think of as being entirely American. Ed Epstein wrote a whole book about this. You can read it if you want to. The plan is meshuggah. Excuse me. It will go nowhere. It doesn't mean anything. Movies are a very weird form of business product. They are often made by large corporations in part, but each of them is essentially one or two or maybe three different companies that assemble to create this one product and then disassemble once the product is completed. And, you know, unraveling all of this is silly. And here's the best and funniest part of this, which is that by announcing this, who to whom is Trump doing a weird favor? Gavin Newsom, the governor of California. Why? Because there is a crisis in film production in the United States, largely involving the fact that it has become too expensive for motion pictures to film in California because of the California state tax code. And so, as a result, other states, as often happens, this happens every 10 years. Different states decide they want to attract production, and so they create tax credits and tax incentive incentives. Georgia now being the most famous because, like all of the Avengers, all the Marvel movies are made in Georgia. Tyler Perry makes all those movies in Georgia. Half of everything is made in Georgia. Why? Georgia will actually pay you, if you were a movie producer, to make a movie in Georgia. Literally, let's say you have a budget of $15 million for your movie. You can get Georgia to write you a check for as much as $7 million for the privilege of having your movie made in Georgia. Georgia doesn't just, like, give you a. It's not a tax break. It actually becomes part of the budgeting structure of the movie. And other states have followed suit. The general pattern of this, which has been going on for decades, is that states do this for a while, and then there is a populist revolt against them inside the state, where somebody says, why exactly are we giving Marvel hundreds of millions of dollars to make Thunderbolts in Georgia? If Thunderbolts was made in Georgia, why is Marvel getting money from the Georgia state taxpayer? And it's like, no, that's the end of that. And then you move on. This is why Breaking Bad was made in New Mexico. There are all kinds of weird things where. Where states are like, no, no, come here. We will give you money in order to employ people in our state. California stopped doing that. And not only doesn't do that, but taxes, taxes film production in different ways, and the entire industry that is based there is. Is in a depression. So if you want to, like, live and work in the movies and you're an electrician or a gaffer or whatever it is you do, you can't live in California and do this for a living. You have to keep traveling or going somewhere. What do you do? If you have a family, you have to. It's a terrible bind. So why Trump wants to announce this in some fashion to get Gavin Newsom and the California leftists, who, on the one hand, want to celebrate the fact that they're in this creative state doing all sorts of wonderfully creative things without doing anything to make the state more business friendly for this signature industry of the state? I don't know.
