Takin' a Stance on Tariffs for Overseas Flicks: Problems Abound, Kiddo!
Film Tax Proposal Faces Immediate Rejection
The idea of slapping tariffs on movies produced outside the States is a big ol' no-go for various reasons—let's break it down:
- Digital or Bust: These days, movies aren't sent via dusty old film canisters, folks. With digital delivery being the norm, this tariff gambit contradicts the World Trade Organization's moratorium on tariffs on digital transmissions, a rule that's been standing strong for a quarter-century. The nitty-gritty details of whether the tariff targets the digital transmission itself or the data being transferred are subjects of debate, but either way, it'dFLAGS SET OFF.
- Tax Man's Got No Playbook: Tariffs are meant for physical goods crossing borders, not digital transmissions. Implementing them digitally is like asking a pig to hunt truffles—it ain't happenin'. A whole new agency would need to be whipped up and trained to handle the job, considering the billions of worldwide digital transmissions that go down every minute. And forget about accuracy—many companies would likely leave 'em off their reports!
- Capitol Hill's Deadlocked: If the government wanted to tax digital movie transfers, it would have to go the European route and pass a bill initiated by Congress. That's a drawn-out, tangled mess that'd get caught up in the congressional logjam over the tax overhaul bill. Even if it sailed through, it'd face challenges as an impermissible tariff, much like the grounds on which the U.S. challenges European digital taxes.
- It Ain't Practical, Kid: Beyond the digital chaos, consider the Alsace-Lorraine: Films are produced within and outside the States. Say Netflix shells out cash for worldwide streaming rights to a foreign flick—would the tariff apply to the full sum they fork over? What about cases where only foreign rights to a film are delivered to a U.S. company?
- Who Benefits? For a brief moment, it might seem like more jobs would stay put in the States. But let's face it—most movies are now manufactured abroad. The majority of these productions need to be based in foreign lands due to story settings, after all.
- The Laugh's on Us: The whole point of trade wars is to reduce the worldwide trade deficit with the States, right? Well, the U.S. film industry is one of the few industries with a significant trade surplus. This tariff proposal would knock the wind out of our film industry, considering the retaliatory tariffs coming our way.
- The propose ain't got nothin' on 'em: Amidst the outcry against the proposal, there's already a scrap yard ready for it. Film industry bigwigs are due for a powwow, and they're bound to get the message loud and clear. So breathe easy, folks!
- Applying tariffs on overseas films could conflict with the World Trade Organization's longstanding moratorium on digital tariffs, as digital transmission is the norm in the movies-and-tv industry, which falls under the broader entertainment sector.
- Imposing tariffs on digital movie transmissions would require the creation of a new agency to handle billions of such transmissions every minute, a task akin to asking a pig to hunt truffles, given the current digital infrastructure.
