The Situation May Not Be As Bad As It Seems
Are taxpayers subsidizing MTV’s Jersey Shore?
That’s what some of my friends are saying.
I usually agree with InTheLobby and Declan O’Scanlon, but in the case of the New Jersey Economic Development Authority granting a $420,000 tax credit to MTV for the 2009 production of Jersey Shore, I’m not so sure.
I’m not fan of the show. I never watched it. The promotions and buzz about it are enough for me to know that I’d rather see a Law and Order re-run. Yet, there is no denying that the show has generated quite a bit of economic activity. That’s what tax credits are supposed to do.
Tax credits are not subsidies in the sense that the government is writing a check. They are promised tax reductions given to induce investment that will, hopefully, generate economic activity and more overall tax revenue than the amount of the credit. Since Governor Christie has taken office, New Jersey has granted much larger tax credits to spur investment in Atlantic City and the Meadowlands.
Is the Jersey Shore tax credit a good deal for New Jersey? I don’t know. The Treasury Department would have to calculate the increased tax revenue that resulted from the show. It would take $6,000,000 in increased sales of hair gel, contraceptives and alcohol to generate $420,000 in sales tax to “break even” on the tax credit. I don’t buy hair gel or contraceptives. I don’t watch the show, so it hasn’t driven me to drink more. We’d have to rely on Treasury data to judge if increase sales taxes paid for the tax credit.
But we’d also have to include increased income taxes in the analysis. How much do Snooki, the Situation and the rest of the cast pay to New Jersey in income taxes? What about the rest of the crew? What about the increased income, and taxes for Seaside Heights businesses and their employees?
Is MTV paying any taxes to New Jersey as a result of the show at all? If they hadn’t produced the show, they certainly would not have paid any taxes. If the tax credit induced them to produce the show, that is what it was designed to do.
“I can’t believe we are paying for fake tanning for ‘Snooki’ and ‘The Situation’, and I am not even sure $420,000 covers that,” said Assemblyman Declan O’Scanlon (R-Monmouth). “This is a great investment for the taxpayers, as if they can make a show called ‘Jersey Shore’ anywhere else.”
Declan obviously doesn’t watch the show either. They can make a show called ‘Jersey Shore’ in Italy.
Boardwalk Empire, the HBO hit series about the history of Atlantic City is not shot in New Jersey. The beach scenes are shot in Coney Island, New York.
The Jersey Shore tax credit made headlines because State Senator Joe Vitale and the Italian American ONE Voice Coalition’s moral sensibilities are offended by how Italian Americans are depicted on the show. They called for Governor Christie to veto the tax credit. Christie doesn’t have the authority to veto the tax credit. Vitale should have known that. He probably did know that and just wanted to get his name in the papers. What he did instead was generate more free publicity for the show he says offends him.
Vitale and ONE VOICE might have better luck in the courts. Earlier this week the Appeals Court set public moral sensibilities as a standard for what is legal in New Jersey. If Vitale can convince a judge that the public’s moral sensibilities are offended by Jersey Shore, maybe he can get the show shut down, or get it moved, along with all the economic activity it is generating, to Italy or New York.
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Art, if you are really concerned about the abuse of taxpayer funds on the NJ shore, I would suggest that you look elsewhere. You won’t, of course, but here goes …
Art, the Governor of New Jersey curently has an official mansion in Princeton (Drumthwacket) AND an official beach house on Long Beach Island. If you are as concerned about public expenses as you claim to be (see your post above), then you would be pointing out how much Chris Christie, personally, costs the taxpayers of New Jersey.
Tell me, Art, how much free public housing does Chris Christie need? Tell me, Art, how many times has the NJSP helicopter flown Chris Christie and/or his family members to this free, taxpayer-funded beach house?
Welcome to Drumthwacket: The Official Residence of the Governor of New Jersey
The NJ Governor’s Beach House
Gov. Chris Christie goes on vacation for 2 weeks
When the Governor of NJ travels out of the state on what he calls “personal travel,” his NJSP security detail also travels with him (e.g., traveling with the Governor & his family to Disneyworld during a recent blizzard). NJ taxpayers have spent hundreds of thousands of dollars on airline tickets, hotel bills and meal expenses for the NJSP Troopers that always go with Governor Christie on these out-of-state and so called “personal” (e.g. political fundraising) trips that Governor Christie loves to go on since taking office.
Funny, Art, how you have little to say about these expenses. Why do you suppose that is?
Reminder to Gov. Christie: You Work for Us
The Governor’s Offical Beach House
I forgot to mention that Governor Christie recently took his wife and 4 kids to watch the Jets-Dallas game on Sunday. (The Governor is a Dallas Cowboys fan. His son is a Jets fan.) Of course the Governor & his family sat in their NJ taxpayer-funded, luxury suite. The Christies, no doubt, enjoyed whatever meals &/or beverages are served in these luxury suites.
Tell me, Art, do you think Chris Christie reimbursed the State of NJ for the full, fair-market value of those seats/meals/beverages that he & his family members enjoyed?
Chris Christie on Twitter Talking About His Sunday Plans
Aide to N.J. Gov. Christie defends retaining stadium, Izod, PNC boxes
OPRA,
Did you even read my post?
Do you know 1) How long Drumthwacket has been the Governor’s Mansion? (Christie doesn’t reside there, by the way)
2) How long the State has owned the beach house at Island Beach State Park and dedicated its use to the Governor?
3) How long Governrors have had a box at Meadowlands sporting events?
Would you have the Governor travel without his security detail?
Thanks for stopping by. Give my best to my Blue Jersey friends, especially Jay and Jeff
Art, I hope the NJSP finds the guy that put a gun to Chris Christie’s head and forced him, against his will, to both use and not sell that LBI beach house mentioned above. It is terrible that, in this day & age, a governor would be forced — again, against his will and despite his best efforts to sell that beach house — to repeatedly take a NJSP helicopter to transport both himself & his family to that very same beach house for various vacations. So sad.
[Sarcasm off]
The Governor and his spokesman have both said that the oh-so-expensive, climate-controlled, luxury boxes that the Governor controls will be only be used for official entertaining done on behalf of the state. (See the link below.) Tell me, Art, which one of Chris Christie’s minor children were worthy of the “official entertainment” that NJ rolls out for those it is trying to impress? Which Christie (minor) child is considering doing business with the State of New Jersey?
The State Code of Ethics dictates that a NJ government employee should not use his/her official position to receive unwarranted privileges (e.g., taking a NJSP helicopter on a “training mission” that just happens to involve landing where your kid is playing high school baseball). To the extent that the Govenor did not pay — beforehand, at least — for those tickets, meals and beverages that his family members received at the recent Jets game, can we conclude that the Governor violated that same Code of Ethics? Or are you, Art, a Christie cheerleader to be sure, willing to give the Governor a pass yet again?
Aide To NJ Governor Christie Defends Retaining Stadium, IZOD, PNC Box Seats
Must Be Nice: Chris Christie On Twitter Boasting About Going To The Jets Game
Oh yeah, if the Governor is leaving the state for political fundraisers and/or personal reasons then, YES, the Governor should reimburse the taxpayers of NJ for those expenses incurred by his NJSP security detail. Do you disagree?
pick pick pick……..
Thank you, Governor Christie, for all you are doing to improve the state of affairs here in New Jersey. i appreciate all your efforts.
Have fun with your family at the football games! Hope you had a great vacation at the Jersey Shore!
OPRA,
I do disagree. Frankly, I don’t think you agree either. You’re being a petty partisan hack who wouldn’t have an issue with the perks of the Governor’s office if it was held by a Democrat.
I’ll take your argument seriously when and if you call for Obama to reimburse the US Treasury for the use of Air Force One and Secret Service protection for fund raising trips, vacations and date nights.
While I would perhaps believe that you are genuine, in that case, I would still believe that you are genuinely petty.
I don’t begrudge Christie, his family, or Obama and his family the perks of their offices.
Now, if you would like to talk to me about Frank Pallone’s wife’s job…I’ll be with you.
Since the house is in the middle of a state park it would be difficult to sell.
Anyway about Tax Credits. wether the tax credit makes or looses money is beside the point. The question is should government be picking which businesses to favor?.
When Jersey Shore pays less taxes someone else (all the other taxpayers) pays more to make up the difference.
MLaffey,
You can’t say someone else makes up the difference if the business that received the tax credit spurred economic activity that increases overall revenues. There is no difference to make up, in that case. There is money that would not have been there in the first place.
I’m not saying that it the case with the MTV tax credit. As I said in the original post, we’d need more information to say. Seaside Height’s Mayor Kenneth Hershey says that Jersey Shore has been a boom for his town. Anecdotal reports say this past summer season was very strong on the Jersey Shore. If those reports prove to be true, does the MTV show get credit for that? Hard to say.
Wasn’t there a report that last summer (2010), Seaside boardwalk businesses (including badge sales) had a revenue increase of $8 million over the previous year? I know that was the summer of recovery, but most of it was still attributed to the TV show’s promotion
All right Art that may be true if a lot of assumptions work out but who is to say that same tax credit somewhere else would not have created more revenue somewhere else. And who is to say that just as many people didn’t stay away from the Jersey shore so they did not have to deal with the people potrayed on the show. No way to tell.
From a policy perspective government should not be favoring one type of business over another. Tax credits for businesses are bad policy. A lower tax rate for ALL businesses is a good policy
I have a shore tourism related business as well. Where is my tax credit? Like Laffey says, you shouldn’t favor one business (or one class of businesses) over others. Wanna spur economic activity? Just lower the tax rate for all.