The Big Winners Under Trump’s Tax Cuts Are His Loudest CriticsMay 3, 2018 – Media Mention
In a surprise plot twist, President Donald Trump’s new tax law is delivering many of its juiciest benefits to his most vocal critics in Hollywood.
The tax overhaul doles out windfalls to the producers and film financiers who control the entertainment industry. It slashes tax rates, especially on overseas profits that are the lifeblood of Hollywood, and changes accounting rules in a way that could attract more investment dollars to show business. With clever tax planning, A-list celebrities and directors could also benefit, especially by using a special break intended for business owner “It is going to be very encouraging for people who risk money making movies,” said Michael R. Morris, a tax lawyer at Valensi Rose PLC in Los Angeles, and a former Internal Revenue Service trial attorney.
“Studios just got a big windfall,” said Schuyler Moore, a partner at law firm Greenberg Glusker. By combining lower rates, immediate expensing and the “astounding” new rate on foreign derived intangible income, Moore said, “they’re not going to be paying taxes for a long time.”
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