Taxes at the box office

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Analysis:

This piece looks at the issue of recent proposals from the state government to close corporate tax loop holes through the narrow lens of a proposed sales tax on movie tickets. As noted in the piece, the lack of a tax on tickets is a sort of corporate loop hole. This comes on the heels of recent proposals to cut other tax loop holes. As noted in the story, a failure to close these tax loopholes could result in further cuts in healthcare and education. In the story WZZM 13 interviews four people, a state official defending the sales tax, a local theater owner opposed to the sales tax, and two movie patrons vehemently opposed to increased prices. While the story mentions the proposed bill that would impose a sales tax on movie tickets, it does not list what the name of the bill is or how viewers could fin out more information. Nor does the story tell the viewer how they might find out more about the petition against the sales tax, or which theaters were circulating the petition.

Story:

WZZM 13 Newsreader - Well, the summer blockbusters may not reel in the bucks that moviemakers are banking on this year. In an exclusive 13 Survey USA News poll we asked a few weeks ago, the majority of people, 63%, say they see a movie at the theater less than once a month. And the number one reason they say they don't go to the movies is because they're just too expensive. But don't expect those prices to go down, because the price of a movie ticket may in fact be climbing. Michigan lawmakers are considering charging a sales tax on movie tickets to help solve the budget problems. WZZM 13's Valerie Lego joins us live from Celebration Cinema to show us how it's affecting moviegoers tonight.

Reporter - Lee, this display says it all and it really shows that a lot of moviegoers simply don't want to pay the extra 50 cents it's going to cost to go to the movies should the sales tax be approved. But lawmakers say they need that money to keep health care and education costs in the budget.

Reporter - It seems the price of movie tickets just keeps going up.

Cinema Attendant - ...2 adults and one child is going to be $23.50, please...

Reporter - And now, Michigan's governor wants lawmakers to approve a bill that would add sales tax to the price of a ticket.

State Official - Closing this particular tax loophole would save taxpayers about 20 million a year...

Reporter - Currently, movie theaters are not required to charge sales tax on tickets, but theater owners are not about to let this proposed bill go through without a fight.

Theater Owner - I hope that people understand that it's not our goal to keep increasing ticket prices, and we're doing everything we can to make sure that this doesn't go through.

Reporter - Theater owners across the state of Michigan united and put together this petition drive so that movie theaters would have a clear picture of what's being discussed in the legislature.

Movie Patron #1 - I think that the prices are high enough, for real. They shouldn't tax them.

Movie Patron #2 - I think it's expensive as it is, and why would you want to go up more?

Reporter - And so far, it seems to be working.

Theater Owner - I think at last count, I thought we had around 40,000.

Reporter - But the state warns there could be money problems if the movie tax isn't included in next years budget.

State Official - We hope that people realize that if these corporate tax loopholes are not passed, we may have to cut state services.

Reporter - Right now, the bills are still in committee, so they have to be voted on yet. Meanwhile, the movie theater owners across Michigan are hoping that they're going to get another 60,000 signatures for a total of 100,000 signatures to send to the governor. Reporting live in Grand Rapids, Valerie Lego, WZZM 13 News.

Time: 2:30

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This page contains a single entry by Media Mouse published on July 8, 2005 1:28 PM.

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