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President Donald Trump directed his attention this week at Hollywood, threatening in a social media post to impose tariffs on movies produced outside of the United States.
Trump posted on Truth Social the American movie industry was dying a "very fast death" because of incentives other countries offer filmmakers to produce films and movies outside of the U.S.
President Trump’s initial proposal to impose a 100% tariff on foreign-produced films was met with bafflement and horror in Hollywood. But for lawmakers who represent film industry workers, it looked like an opportunity.
“I would like to refocus the conversation around a national film tax credit,” said Rep. Laura Friedman, a Democrat from Burbank. “We know this works.”
Jon Voight’s proposal to “Make Hollywood Great Again” sent to President Donald Trump on Tuesday offers a mix of tax incentives, tariffs, co-productions and a proposal to bring back the famed Fin-Syn arrangement of the 1990s.
Here are the topline proposals in the five-page plan:
Federal Tax Incentives:
Shortly after President Trump stunned Hollywood with his call for tariffs on films produced overseas, California Gov. Gavin Newsom waded into the debate with an unexpected offer.
When President Donald Trump posted on Truth Social on Sunday that he wanted to tax foreign made films, it caught California Democrats off guard.
When President Donald Trump posted on Truth Social on Sunday that he wanted to tax foreign made films, it caught California Democrats off guard.
Hollywood executives scrambled Monday to interpret President Trump’s call for stiff tariffs on movies produced outside the U.S. — a bombshell proposal that would upend how movies have been made for years.
Trump on Sunday night announced that he was authorizing a 100% tariff on movies “coming into our Country that are produced in Foreign Lands.” The proposal, like many other Trump-imposed tariffs, is aimed at bringing a key industry back home.
The sweeping bill that would increase California film and television tax credits from $330 million to $750 million has been advanced by the Arts, Entertainment, Sports and Tourism Committee in the state assembly and the Revenue and Tax Committee in the state senate.
Los Angeles has seen its dominance as the film and television capital of the world start to chip away as companies leave California for other states and countries with lower production costs.
But it’s not just Hollywood’s pride that’s at stake.
Those worried about the mass exodus of production companies say that when film crews and others in the industry leave, it has a negative ripple effect on the local and state economies.
When workers relocate out of L.A., for example, they’re not spending their money at local shops or restaurants.