US President Donald Trump has blamed the Democratic Party for the decline of Hollywood and said that foreign countries have pulled film production out of the country. He spoke on the topic at a campaign rally in Daytona Beach, Florida, in support of Republican candidates ahead of the midterm elections.
“Hollywood is empty because of foreign countries. The Democrats allowed it“, Trump said, quoted by the Express Gazette. According to him, film industry representatives, who “have been saying nasty things about him for years“, are now turning to the president with a request for tax breaks.
“Now they want tax credits because their industry is dying in this country“, Trump said. He added that he would likely provide similar incentives, without announcing specific parameters, size or timeframe for the possible measure.
The idea of a federal stimulus is already on the agenda
This is not the first time that Trump has proposed federal aid for film production. In late August, he called on Congress to draft a law to bring more productions back to the United States. The president said that Republicans and Democrats should work together on the measure.
The proposal also received support from Democratic Senator Adam Schiff of California. According to him, moving productions outside the United States has serious consequences for jobs and the local economy. However, no federal law has yet been passed to provide a new tax credit for film and television productions.
Foreign incentives attract American productions
For years, U.S. film and TV productions have competed with programs in Canada, Britain and other countries that offer tax breaks and lower costs. According to the Los Angeles Times, by 2025, 45 percent of American scripted films and TV series will be shot outside the country. In 2022, the share was about 33 percent.
Trump has already discussed another approach - possible tariffs on films produced outside the United States. There is no final decision on such a measure. In August, the president turned his attention to tax incentives, saying they should bring manufacturing and related jobs back to the American market.
Sources: express-gazette.com, latimes.com, washingtonpost.com