America
Hollywood’s ‘Woke’ Movies Made on Your Dime
Starstruck states have lavished $25 billion on tax credits for studios, but they have little to show for it.
H BY JOHN FUND
ollywood keeps getting rude messages from audi- ences when it makes “woke” films — they often
bomb at the box office. Snow White, an attempt by Dis-
ney to remake its classic 1937 feature with some heavy-handed progressive messaging, only brought in a measly $43 million in the U.S. during its first weekend in theaters in April. The film cost nearly $270 million to
produce, so it will need to sell $600 mil- lion to break even after marketing and other expenses. What is the response from Holly-
wood? While a few studios are mak- ing more old-fashioned — and popu- lar — entertainment, many are instead engaged in an “alms race” to get states to provide extravagant tax credit subsi- dies so they can make more woke films. States are suckers for the pitch. Filmmaking is a $9 billion a year “sexy” industry that allows state offi-
14 NEWSMAX | MAY 2025
cials to rub shoulders with celebrities if they delude themselves into thinking that local film productions will be a big boon to their local economies. Ronald Reagan once said the “gov- ernment’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, sub- sidize it.” That perfectly describes what Cali-
fornia has done to Hollywood, the cen- ter of its once dominant and thriving film business. Over time it’s created a high tax, pro-union, and byzantine regulatory climate that’s driven many filmmak- ers out of state. Film and TV industry employment in the Los Angeles area hit a 30-year low last year, with the region’s share of jobs falling from 33% in 2022 to 22%. What is Gov. Gavin Newsom’s
response? Force-feed film companies to stay in California by doubling the state’s film and TV tax credit program
to $750 million. The state will now pro- vide up to a 40% tax credit to offset production expenses. But California, which has been pass-
ing out lavish credits since 2009, is playing a losing game — as are almost all of the 38 states that offered film sub- sidies in 2024. Some programs such as the one in Texas take the form of cash grants. Others, like Georgia and New Mexico, offer tax credits. But regardless of the program, they
all pit states against each other in a game of “beggar thy neighbor” as they chase elusive film dollars into their states and away from others. States have spent $25 billion on tax incentives over the past two decades to lure Hollywood. New York state alone has written more than $7 billion in checks to studios. Its film tax credit pays 30% of quali-
fying production costs for projects filmed in New York state, with an addi- tional 10% available in rural counties. Gov. Kathy Hochul, a New York Democrat, brags that Anora, this year’s Academy Award winner for best pic- ture, was filmed in the Empire State. So other states are scrambling to set
MOVIE SET/LEOPATRIZI©ISTOCK /
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