Unfeasible Cinema Tax Proposal Faces Strong Opposition
Let's get one thing straight: Hollywood needn't lose sleep over that wacky idea of slapping tariffs on foreign films. Here are the top reasons why this plan is as viable as Lindsay Lohan's career comeback:
- The Web Told 'Em So: The World Trade Organization has an ongoing moratorium on tariffs on digital transmissions, which has been in place for a whopping 27 years. There's a debate raging about whether the tariff ban applies to digital transmissions themselves or the data transferred. Either way, it's clear as mud to a tariff.
- Customs Agents? Who Needs 'Em? Tariffs are meant for taxing physical goodies crossing borders, not digital transmissions. That means creating an entirely new agency to manage the billions of worldwide digital transmissions per minute. Can you say chaos?
- Tax Time ain't Fun Time: If we wanted to impose a tax on digital transmissions, we'd need an act of Congress, and we all know how smoothly that goes. Even if it miraculously passed, it would end up in a legal smorgasbord, just like the pending tax overhaul bill.
- Practicality, Schmaticality: The very concept of taxing digital film transmissions is as unworkable as a Kardashian attempting to play Hamlet. Even setting aside the fact that films are produced within and beyond the U.S., what happens when Netflix nabs worldwide streaming rights to an international film? Tariff time for Netflix? What about digital delivery to a U.S. company of only foreign rights to a film?
- Who Benefits, Eh? The tariff might create a short-lived boom in movie production jobs in the U.S. But it would crater all film production companies, including the majors, since most films are now created outside the U.S. Apart from the logistical nightmare, many films are set in foreign lands.
- The Cherry on Top: The very purpose of trade wars is to mitigate the worldwide trade deficit with the U.S. But the U.S. film industry is one of the few industries with a significant trade surplus. This proposed tariff would cripple the U.S. film industry, especially considering the retaliatory tariffs headed our way.
- The Party's Over: The plan has already taken a beating since it was first proposed. Meetings with film industry honchos are on the horizon, and they'll hammer home the message loud and clear. Relax, everyone!
Bonus Info for Film Freaks
The imposition of tariffs on digital film transmissions comes with several implications for the streaming services, consumers, international productions, and anime industries. Additionally, issues like enforcement challenges, definition of covered content, intellectual property concerns, and technological and legal hurdles makes implementing such a tariff a complex affair.
[1] Impact of Trump's Trade War on Netflix: https://www.cnbc.com/2018/03/22/netflix-stock-takes-a-hit-on-trump-tariffs-on-china-imports.html
[2] The Problems with Tariffs on Digital Film Transmissions: https://www.cineuropa.org/en/article/165676/
[3] How Tariffs Could Affect the Cost of Streaming Services: https://www.cnet.com/news/could-trumps-tariffs-raise-the-price-of-netflix-and-hbo/
[4] The Potential Impact of Tariffs on the Anime Industry: https://www.animeasiaonline.com/anime-shows-on-netflix-to-be-hit-by-trump-s-tariffs/
- The idea of imposing tariffs on foreign films, as suggested, could face significant challenges due to the ongoing moratorium on tariffs on digital transmissions by the World Trade Organization, a problem that parallels the unpredictability often seen in movie sequels.
- If implemented, tariffs on digital film transmissions might lead to complications for streaming services, international film productions, and the anime industry, much like how a poorly scripted movie might affect the entertainment industry as a whole.
