Small businesses across the nation have suffered set backs and quite a number have failed - they're gone! America is losing - losing the very essence of film in both quality and quantity. Hundreds of thousand of jobs have been lost! Frank Capra, President of Screen Gems Studios in North Carolina has described the deterioration of work for both his studio and his crews in crisis terms: there is significantly less work today than last year and it dwindles year after year - many crewmembers cannot even buy milk for their babies! This story repeats itself in state after state.
     Shakespeare said, "Look to the actor, he is the brief and abstract chronicle of the times." When "Film," the number one Industry, takes production away from our own country, all aspects of our economy are affected! The shocking FACTS ARE: that of the 120,386 professional actors, there are only approximately thirty big money makers! In the year 2000, 80% of Screen Actors Guild members earned less than $7,500, under the poverty level and of those, nearly 50% earned nothing! For every $1.00 an actor earns, approximately 40¢ goes to the professionals he supports: agent, manager, lawyer, business manager and press agent. This amount does not include Uncle Sam. Other film related businesses having lost a major portion of their income face the same dilemma. When the actors work neither do:    

    For the past ten years Independent film makers have continued their plight with little hope on the horizon to keep productions in the United States. American films made in foreign countries for economic reasons continue to grow in both number and dollar impact.
    As Independent Producers strive to find investors for their projects, they face savvy financiers that can put their money in better tax-advantaged investments. Wholesome films - films that are typically made by independent film makers - are considered "soft" by major studio standards and more economically risky than the genre of "rape, pillage and plunder" films. It's not too hard to see why the viewing public feels there are so few "good" films in theaters.
    Many productions are developed and scheduled for release in the U.S. but filmed in foreign countries such as Canada, Mexico, Great Britain, France, Germany, Australia and Malaysia among others. In the next ten years, these productions are projected to take $150 billion of American investment dollars and work to Canada alone. That's money that will be spent - and taxed - in Canada, not the U.S., for pre-production activities, principal photography and post-production work. Those activities will put Canadians to work on movie sets, and a host of ancillary Canadian businesses that benefit from production in their area all transactions garnering income through taxes for Canada.
     This by no means indicts Canada for beating us at our own game! They've done a masterful job attracting investment and production through various economic incentives. Canada has made it very attractive for the movie industry and has profited enormously! Other countries are not far behind. We are losing billions of investment dollars to Australia, France, Germany, Spain and Asia as they "learn" the process.
      It's time the U.S. took steps to revitalize this "Made in America" Industry! A few incentives are in place in progressive states interested in attracting productions, largely rebates of sales taxes; noble efforts, but far short of delivering real economic impact attractive enough to bring the adequate productions to their state. How can the United States keep American productions in the U.S., create jobs for Americans, enable small businesses to gain incremental business and ultimately create more films with higher perceived quality? In the current economic climate we cannot afford to hand over 180 billion dollars to foreign countries. We need to incent the investor!    Entertain this proposal: "For Independent films produced entirely within the U.S. with a rating of "R" or better, between a total budget cost of $2 million to $20 million, allow the investor to expense the investment in the taxable year that it's used, then treat any earnings from the sale, promotion and exploitation of the film as ordinary income, taxable at the then applicable tax rates." This simple, straight-forward action would have a significant impact on the U.S, economy and bring American productions back to America! Visualize the impact:

• A substantial part of $180 billion plus projected to be lost to "Runaway Productions" in the coming decade remains in the U.S., fueling the economy and, even if taxed at a minimal 20%, would result in $36 billion in outright taxes and more in individual income taxes paid by more working Americans.
• More American producers, directors and actors work, creating U.S. jobs that pay personal income tax as well as improving their contributions to health and pension benefits.
• A renewed platform for up-and-coming, high potential American actors to work in films that are now lost to foreign countries. This will provide a new opportunity for these neophyte actors to work with today's stars and learn from them!
• Crews, not now working, would be gainfully employed and more crews developed as productions grow, all paying taxes on their income.
• More small businesses will support production in the U. S., generating jobs and taxable income.
• Expensing investment will fuel more investment immediately, creating more films, more product for theaters and more variety for the public.
• Films in the 2 to 20 million dollar range will, by necessity, be "people" oriented: by establishing a floor of $2 million, pornographic films will in all likelihood be eliminated while a ceiling of $20 million will limit the "shoot-'em-up" aspects like big stunts and computer animation that tend to push budgets to $40 million and upward.
• Studios and Distribution companies will have more product to distribute as the investment opportunity fuels more production.
• Foreign investment is likely to be drawn to the U.S.
• More work in the U.S., more small business opportunity, more films, more "downstream" business opportunities and American films made in America!

    This proposal if translated into law will fuel domestic film production like wildfire. Small businesses will flourish, production companies will be able to better seek investors, distributors will have more product to market and there is the highest likelihood that film quality will improve. This proposal is U.S. budget neutral! If you consider a $10 million credit to investors of a film - that money will be spent in that year creating taxable expenditures for the entire amount spent. Per the U.S. Bureau of Economic Analysis, multipliers of 3.1 and 3.6 can be applied to both direct spending and wages (assume a 50-50 split) to total $33.5 million. Tax that at just 30% and you get $10.05 million, making this a zero sum game in year one, then in subsequent years when the income from sales revenue is taxed, it brings even more cash to U.S. coffers. The bulk of $180 billion-plus we now lose to other countries can be returned to the U.S.!
     Independent filmmakers have always been resourceful and have made economical films even as Studio costs escalated. The Independent filmmaker is the backbone of quality films that delve into the human element and deliver award winning films. This proposal enables more work in the U.S. and benefits everyone across America economically and culturally. The time is now to "jump start" the Independent film industry and recapture American film production!