Posted by David Fischer on 10/02/09 11:03 AM [Newer: Congressman Ron Paul to Make Iowa Visit] [Older: U.S. Adventurism not Worth Lost Lives]

Much has been said recently about the growing controversy regarding the Iowa Film Office.  Missing from all the discussion is why this big-government program exists at all.

In a nutshell, the Iowa government offered 50% tax credits for a company's cost to make a movie in Iowa.  These companies could use the credits themselves if they had enough Iowa tax liability or sell them to another Iowa company who did.  So, essentially the movie company gets half of its production costs paid for by ordinary Iowans and big businesses in Iowa get to buy some tax coupons from the movie companies (at a discount).  The idea was to lure Hollywood to Iowa and grow a film industry here.

As if the existence of this program isn't ridiculous enough, it's the mismanagement of the program that has put it in the headlines.  Apparently the movie industry provided very little documentation of their expenses but got the credits anyway - $32 million so far and it could go well over $300 million.  Credits include over $125,000 for a Mercedes and a Range Rover that weren't even used in making a movie.  This is a good investment for Iowans?

The story is really just getting started.  The honchos at the Iowa Film Office and Iowa Department of Economic Development have abruptly resigned.  Investigations are forthcoming and there is outrage all around.  But nobody should be surprised when government carelessly plays Santa Claus with "other people's money" and opportunists take advantage of the situation.

Where's the call to terminate this unnecessary big-government program and close the Iowa Film Office?  Knowing this was among Governor Culver's initiatives, I expected republican legislators to call for its closure...but that's hard when you endorsed its creation.  The 2007 legislation that allowed this mess to happen reportedly passed the Iowa House by a 95-1 vote and the Iowa Senate by 48-2.  Whoops!

I guess that explains why leaders from both parties think the solution is more probes, more accountability, more oversight, and better management.  Such faith in big government solutions is misplaced.  The solution is the elimination of this special-interest corporate welfare program.  Subsidizing the entertainment industry at the expense of ordinary Iowans is not a proper role for government.

The politicians and bureaucrats who created this mess and the companies taking advantage of it can tell us such a program is in our best interest all day long...this scandal is just more evidence that it isn't.  Thumbs down!