Georgia giving tax cuts to high school football teams

Our beloved Georgia started giving 40% tax credits to Hollywood companies a few years ago. The tax credits are salable.

Let's say a Hollywood company makes a film in Georgia and they spend $1,000,000. They could get a tax credit of $400,000. Since the production costs are paid during filming and profits counted much later, the Hollywood company can sell the $400,000 to an existing Georgia company.

So at the worst, Company A has made no money and has no Georgia tax liability but has a Georgia tax credit of $400,000. They sell the credit for $360,000 paying a 10% fee to a broker. They still have no Georgia tax liability. A Georgia political insider just made $40,000. Let's say Delta bought the credit. Reducing their taxes.

Now, the positive argument goes, Georgia comes out ahead with increased jobs.

So, will Company A create enough jobs to pay back the $400,000? The GOP says Yes!

As a matter of fact, the GOP likes giving salable tax credits to attract entertainment.

The Georgia House of Give-away-slaters are applying the principle to high school football. If a Hollywood or Texas hight school football team will pay in Georgia, the coach will get two footballs signed by the Goobernator, 3 jock straps worn by interior lineman in a professional game, and $400,000 in salable tax credits.

Why?

There's study by the Hermitage Foundation on high school football. The sport adds a cool billion dollars to the national economy. The study included only money spent on transportation, tickets, and tailgating. Head injuries, legal sales of burgers, and EMTs were excluded in the figures.

So Georgia wants to be the destination of every high school football team in American. And, they're willing to pay in salabe tax credits.