See any good “B-movies” lately? Generally low-budget, campy movies that don’t have great scripts or good acting paired with it. Often times they are “horror” flicks, or “horror comedies”. Sometimes they are almost like long-winded soap operas that go on for 90 minutes or more.
Producing any movie is a financial risk. B-movie producers are no exception, although with smaller budgets, they are (perhaps) capping their risk exposure, a bit. Still, it isn’t easy for anyone – big Hollywood production house movie division or independent film producer, to make a profit off a film. In a recent article about the Kansas City Chief’s Travis Kelce becoming a film producer by Paul Bois, I noted the following honest take from an independent production company owner:
Ray Maiello, who runs California-based Radiant Media Studios with Field, said the tax credits help make the financing of a movie less risky.
“Hollywood is risky, right? On a scale of one to 10, Hollywood, it is a 9.5. Especially in terms of independent film,” he said. “These federal tax credits take the risk down to like a five.”
Whether he knew it or not, Mr. Maiello was perfectly describing what is called “moral hazard” via government / state intervention. The government, aka the taxpayer, is limiting the risk of some “preferred” people. As a result, if the product (a movie) is weak or flops — who really cares? The producer is protected, somewhat, from the full consequences of making a spectacularly dumb movie. They may then continue to make more terrible movies while the taxpayer picks up some of the tab.
Mr. Maiello was referring to a federal “green” tax credits scheme via President Joe Biden’s “Inflation Reduction Act”, but, wouldn’t you know it… a similar scheme of tax credits for “film production activity” exists at the state-level and your state of Maryland is of course shoveling out the big bucks to movie production corporations. The Center on Budget & Policy Priorities (cbpp.org) stated back in 2010 that:
State film subsidies are costly to states and generous to movie producers. Today, 43 states offer them, compared to only a handful in 2002. Over the course of state fiscal year 2010 (FY2010), states committed about $1.5 billion to subsidizing film and TV production — money that they otherwise could have spent on public services like education, health care, public safety, and infrastructure.
But of course, these bad policy ideas stick around, and year after year the grift continues. Thirteen years later, Maryland is still shoveling good taxpayer money after questionable, often bad B-movie films:
Consider MegaMind Media LLC, which produced several films (see image above) but also something called “Trophy Wife” and, per the state document shown, was projected to receive a state tax credit of $125,000 towards the production of a movie that got 5.8 out of 10 stars on imdb.com. Screen cap and a film synopsis is below:
Riveting stuff. Is this what the hard-working Maryland family has to see supported via their tax dollars? B-movies about a murdered, philandering husband and his estranged, crazy wife? Again, if this genre of film is your thing — awesome! But why are tax dollars going to the production of it? The claim that these things “pay for themselves” with “economic impact” is never really justified, and it is highly likely that many films would be produced in Maryland without the direct taxpayer subsidy, anyways.
Interestingly, the founder and CEO of MegaMind Media LLC is Tressa Smallwood. She is a donor to Angela Alsobrooks (Democrat, current Prince George’s County Executive), a candidate for U.S. Senate in 2024. See screenshot below, as the CEO has given $2,500 to the Alsobrooks campaign:
And this isn’t to nitpick on MegaMind Media LLC. The HBO mini-series We Own This City, produced and filmed in Baltimore, got a whopping $10,000,000 in direct state tax credit subsidy. The funds for this were appointed by Maryland lawmakers back in fiscal year 2021:
We Own This City gave an executive producer credit to one Kary Antholis. He has been a prolific donor to Democrats and state Democrat parties across the country, including thousands to longtime, thankfully retiring, Maryland Congressional Representative John Sarbanes:
So we see that this grift, on and on it goes. Taxpayer dollars flow to movie production corporations, these corporations limit their loss exposure, and in return, select Maryland politicians with a “D” next to their name seem to be reaping the benefits. Who suffers? You, the hard-working taxpayer and your community. Instead of investment in roads, bridges and better schools (and school buildings), you get poor B-movies or rehashed HBO mini-doc dramas about Baltimore, MD. News flash: we know Baltimore, MD has corruption and pretty awful political leadership. It has been that way for a very long time.
I will say, one interesting flick brought to my attention in doing this research was something called Untitled Putt Putt Movie, which stood to get $116,000 in taxpayer money last year (pending approval by some state “board”):
The actual name of this B-movie horror / comedy flick? “Gothic Slayers“. “Two putt-putt employees and best friends must face off against a demonic cult that has not only kidnapped their friend but also threatens to destroy their hometown.”
Hey, sounds like a fun distraction.
