Hollywood finally admits what we’ve been saying for years: California’s tax policies are driving away business, and now their precious entertainment industry faces extinction.
At a Glance
- Los Angeles film production plummeted 22.4% in early 2025 compared to same period last year
- Industry insiders warn LA could become “the next Detroit” without tax incentives
- Celebrities are fleeing California for tax-friendly states like Texas and Florida
- TV production down 30%, with only 13 pilot shows filmed – the lowest number ever recorded
- Governor Newsom proposes increasing film tax incentives from $330 million to $750 million
Hollywood Elite Finally Discover Basic Economics
Well, would you look at that? After years of supporting California’s tax-and-spend policies, the Hollywood elite are shocked – SHOCKED – to discover businesses go where they’re treated best. Film and TV production in Los Angeles cratered by 22.4% in the first quarter of 2025 compared to last year. Now industry insiders are in full panic mode, desperately trying to convince the state to give them special tax breaks while the rest of California’s businesses continue to drown in regulation and taxation.
Celebrities who’ve spent decades preaching about the evils of tax cuts are now fleeing to states like Texas and Florida faster than you can say “hypocrite.” The very same crowd that demanded higher taxes to fund their pet progressive projects now wants exemptions when those policies affect their industry. It’s almost as if they’re discovering the connection between economic freedom and prosperity that conservatives have been pointing out for decades.
“The Next Detroit” – A Self-Inflicted Wound
At a recent town hall meeting, industry bigwigs were practically begging for government assistance. “This is not hyperbole to say that if we don’t act, the California film and TV industry will become the next Detroit auto,” warned producer Noelle Stehman. Well, Ms. Stehman, this is what happens when your state embraces policies that drive up costs, stifle innovation, and punish success. The entertainment industry is just the latest victim of California’s anti-business crusade.
“This is not a tax giveaway. This is a job program that is keeping people in their homes, keeping people off the unemployment rolls. If we don’t do this, it’s going to cost a lot, lot more than these tax credits are costing us.” – state Assemblyman Rick Zbur.
Isn’t it interesting how quickly liberals discover the value of tax cuts when their own livelihoods are threatened? The same Hollywood types who lecture middle America about paying their “fair share” are now demanding special treatment. And where exactly were these concerns when California’s hostile business environment was forcing small businesses and middle-class families to flee the state? Apparently, economic reality only matters when it affects people who make movies.
The Numbers Don’t Lie
The scope of Hollywood’s decline is staggering. Television production plunged 30.5%, with drama production down 38.9%. Feature film production fell 28.9%. The number of TV pilots shot in LA dropped to just 13 – the lowest ever recorded by FilmLA. Meanwhile, states like Georgia, with its 30% tax credit, are experiencing a production boom. Turns out, filmmakers don’t actually enjoy paying California’s astronomical taxes any more than the rest of us do.
“The studios don’t care where they do the work. They’ll do it anywhere. They’re still producing shows. What a lot of our colleagues simply don’t understand is that this is a middle-class problem. The studio heads are going to bed in Bel-Air no matter what.” – state Sen. Ben Allen.
At least Senator Allen gets it. This isn’t about saving Hollywood executives – they’ll be fine regardless. It’s about the middle-class workers who staff these productions. The grips, camera operators, makeup artists, and countless others who actually make movies happen. These are the people being crushed by California’s economic policies, not just in entertainment but in every industry across the state. The irony is that many of these workers consistently vote for the very policies driving their jobs away.
Too Little, Too Late?
Governor Gavin Newsom, seeing his state’s signature industry collapsing, now proposes increasing film incentives from $330 million to $750 million. A new bill, SB630, would boost tax credits to 35% and expand qualifying productions. But these proposals merely highlight California’s fundamental problem: instead of creating a business-friendly environment for everyone, they’re frantically offering special carve-outs to favored industries while maintaining punishing policies for everyone else.
“California can’t afford to surrender any more work to its competitors” – FilmLA spokesman Philip Sokoloski.
Here’s a radical idea: instead of handing out special exemptions to Hollywood, why not create a tax and regulatory environment that attracts ALL businesses? Why not make California competitive for everyone? The entertainment industry is just experiencing what the rest of the state’s businesses have endured for years. The sooner California’s leadership recognizes that their progressive economic policies are the problem – not the solution – the sooner they can stop the exodus of jobs, talent, and opportunity from the Golden State.
