Leading up to the provincial election, the media was all over the story of the “struggling” B.C. film industry. Save B.C. Film rallies were held, begging for more corporate welfare in the form of tax breaks for giant Hollywood studios. The NDP threw in with the industry, promising more taxpayer dough, while the BC Liberals, to their credit, said they wouldn’t do that.

The Liberals won. No new tax breaks materialized. And the industry recovered – it’s as busy as it’s ever been. Save B.C. Film has disbanded, with just a few faded bumper stickers reminding the world it ever existed.

And now, some interesting news out of California, which pioneered the film tax break but now gets beat by many other states and provinces. A new Los Angeles mayor wants more tax breaks, but public opinion seems to be turning against it. This Sacramento Bee editorial makes a compelling case:

The question remains, however, whether the money spent pays off. Connecticut recently imposed a moratorium on its film tax break. In Louisiana, which offers rich tax breaks, experts say the cost of the credits far exceeds the revenue from jobs created.

Before the Legislature extends or expands the film tax credit, there needs to be an independent study documenting it pays off. The legislative analyst is supposed to undertake such a study in 2016.

California’s tax structure is in need of review. The state has among the nation’s highest tax rates. As we noted earlier this year, the Howard Jarvis Taxpayers Association and the libertarian Reason Foundation issued a report saying that if all corporate tax rates were abolished, the overall tax on business profits could fall by more than 20 percent. That would benefit all industry.

Political realities being what they are, California won’t repeal tax breaks. The beneficiaries have powerful lobbies. Hollywood in particular has great clout in Sacramento. Legislators have been known to melt in the presence of glitterati. But before they go into a swoon, lawmakers need to make sure money in the form of tax breaks is wisely spent.

There have been rumours of a B.C. study of just how much film tax breaks cost taxpayers – and the true measure of their return to the provincial treasury. A lot of us would love to see what it says…