As the budget negotiations continue and legislative leaders tell us they are struggling with how to pay teachers and provide essential services to the most needy, they continue to find other ways to use those scarce tax dollars.

Senate Appropriations Chair, Linda Garrou, D-Forsyth, took time off from her duties leading the budget conference committee negotiations to shepherd another spending bill through the Senate yesterday.  Senate Bill 943 increases the tax giveaway for film companies from 15% to 25%, courtesy of course of North Carolina taxpayers, many of whom can?t afford to go to movies these days.  The bill passed 26-19, along party lines (Ds voting yes; Rs voting no).  The bill now goes over to the House for consideration, where they have historically been favorable to corporate giveaways.

The excuse given for this giveaway, as it always is, the giveaway brings in more than it costs.  However a recent study from the Federal Reserve Bank of Boston says otherwise as reported here.  Connecticut’s Department of Economic and Community Development concluded last year that one dollar of its tax credit reaped 8 cents in new state tax revenue.  Not such a great deal for the taxpayer.

Not surprisingly, the film industry likes the tax breaks. Hollywood producer Nan Morales says, ?The tax credits are “a win-win situation.  Otherwise, why would every state be doing it?”

Here?s a better question:  Why won?t North Carolina step up and be a leader.  Get rid of these ridiculous, ineffective and expensive giveaways to big companies and look out for the taxpayers and small business owners of this state.  Then they?d have money to pay teachers and take care of the most needy.