Did Taxes Bring Us Ghostbusters?

By Sam Brunson

Ethan Doyle White at English Wikipedia [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)%5D, via Wikimedia Commons
Sadly, no. But it helped bring several B horror movies that I’ve never seen (and you probably haven’t, either).

Back in the 1970s, film tax shelters were big enough that the Ways and Means Committee got a report on the subject.[fn1]

But the US wasn’t the only market that allowed for film tax shelters. In 1974, Canada raised its Capital Cost Allowance from 60% to 100%. Investors could deduct 100% of the money they put into Canadian-produced movies. How important was this increased deduction limitation? In 1974, only three movies were produced in Canada. In 1979, the number had increased to 77. Continue reading “Did Taxes Bring Us Ghostbusters?”