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The current tax situation in Georgia looks promising for the American entertainment companies and the critics believe it is giving a major competition to the already established entertainment industry in LA. The tax incentives mapped out by the state government to aid the entertainment companies are such that any company from the entertainment industry willing to invest half a million in a project the company receives twenty percent tax credit.
This particular tax easement has resulted in attracting many international and domestic entertainment companies as this consideration effectively reduces the cost of a project. However, the recent changes in the laws of the state of Georgia appear to be creating a turning point in the relationship of the entertainment companies and Georgia. The state has received a major boost in economy since 2008 due to its tax easement clause and has attracted big entertainment companies like Disney, Netflix, and Sony, etc. However according to the recent reviewing of the state laws, the anti-abortion law is not only making the big entertainment companies to protest against this new proposition but also they are considering pulling out their business out of this state altogether.
Tom Nunam who is a lecturer at UCLA School of Theater, Film and Television said, “A boycott on production in Georgia on a grand scale is possible, one could even say imminent”. If this boycott occurs there are three repercussions to be considered. Number one the pulling out of the entertainment companies from the state will directly impact on the economy of the state as entertainment companies are responsible for generating hefty revenue of $9.1 billion as per the latest statistics. Secondly, the pullout is not only going to affect the entertainment companies established in Georgia but also LA as the cost of production is much lower in Georgia as compared to LA and if the pullout occurs many projects might be canceled because of lack of sufficient budgets. Thirdly the future of Georgia will be gravely at stake as this boycott of the entertainment companies will leave Georgia at the hands of the Republicans where they will successfully tighten the shackles of their conservative party practices.
The people who will be the most affected by this boycott of the entertainment companies will be the locals. The local production companies have played a major role in making the establishment of the entertainment companies in Georgia over the past decade extremely easy. If this pullout goes ahead, unemployment in the region will reach extreme heights and will make the task of curbing unemployment for the state government very difficult.
Entertainment companies are an integral part of Georgia’s infrastructure as it has not only brought employment in the region but also has attracted a lot of tourism to this area as the masses are fascinated by the whole process and mechanics of the entertainment companies where they get a chance to see firsthand the making and production of their favorite masterpieces. Along with the investment brought in by the entertainment companies the boosted tourism by the entertainment industry is also bringing in annual revenue of $6.4 billion from the restaurants, hotels, gas stations etc. So as per the current situation, the state government has a lot at stake as well as is in dire need to reconsider their amendments although this anti-abortion law is going to be practiced from January 2020 yet the major protest thrown by the entertainment companies has brought a lot of unrest in the political situation of the region.
The protest of the entertainment companies against the new state law will ultimately reap only one of the following results; either the government will reconsider its plans or the state’s economy and employment rate will fall greatly and will be facing a major setback in the near future. Even if the rebellion of the entertainment companies is unable to stop the government’s plans the entertainment companies have decided that they will donate all of their profits and revenue to the NGOs protesting against the governments’ decisions, in order to show their solidarity with the unjust decision made by the government which is against human rights. The manner in which the entertainment companies have shown solidarity with the people of the state and is working hard to fight the shackles of the conservative ruling party for the state’s welfare is commendable as Nunan also says, “Hollywood deserves a lot of credit for standing up for its principles even if it will hit them in the pocketbook”.