Canada's Subsidies and The Effect On American Workers
According to a 2001 U.S. Department of Commerce report by Commerce Secretary, Norman Mineta, "Runaway film production' has affected thousands of (U.S.) workers in industries ranging from computer graphic to construction workers and caterers. These losses threaten to disrupt important parts of a vital American industry."
The U.S. film industry has voiced concerns about this outsourcing trend which began in the mid to late 1990s, and which coincided with increased Canadian government subsidy programs.
A DGA-funded study confirmed that the Canadian government has engaged in a comprehensive and aggressive, long-term strategic campaign to lure U.S. productions to Canada. The report estimates that runaway productions cost the United States over 50,000 jobs and at least US$10 billion in production monies annually.
At least $13 billion is doled out annually in corporate welfare to the business sector in combined Canadian federal and provincial subsidies and tax breaks, according to the Canadian Taxpayers Federation (CTF), a conservative tax watchdog. The CTF released a report saying that from 1982 to 1997, the Canadian federal government handed out $11 billion in 32,969 grants and loans to the provinces earmarked as business subsidies or directly to corporations.
Read more about this topic: Runaway Production
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