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Wall Street Journal Opinion@wsjopinion

The second Trump Presidency has taken some strange policy turns, and the latest example is Trump’s endorsement this week of a tax subsidy for Hollywood. Has the President lost the pro-growth tax plot that helped make his first term an economic hit? A federal subsidy for entertainment production on its own won’t create many jobs or enhance U.S. prosperity. It will enrich large Hollywood producers and prop up industry unions, which have struck labor agreements that make the U.S. a less attractive place to shoot TV shows and movies. More than three dozen states offer subsidies for the industry. These subsidies are a form of income redistribution to a politically favored industry, and not a poor one. New York last year spent $1.2 billion on production subsidies, yet the state has been bleeding entertainment production jobs since 2022. California awards $750 million in tax credits a year—more than double what it did in 2019—yet it has lost 19,200 production jobs. Trump’s 2017 tax reforms were successful because they were largely neutral and encouraged long-term investment. A production tax credit would provide a short-term stimulus for one industry, which primarily supports Democrats. The idea deserves to die on Congress’s cutting-room floor. Read the full article at the link in our bio. #WSJOpinion Photo: Patrick T. Fallon/Agence France-Presse/Getty Images

Comments

A preview Instagram ships with the post — 3 of 3 public comments.

@bondclothing Nonsense. There’s a reason why so many other countries have it.

September 4, 2026

@dagazeng But the insurance subsidies is a good sound of investment, thank you Mr. President Trump!!

September 4, 2026

@ikeepitclassic It’s called Creative Destruction! The movie business isn’t gone but it’s not booming. Once Meta and YouTube really open it up it’s done. The long bet is the theatre- being able to gather over content will be the biggest boom in media. Netflix should create a social media product.

September 4, 2026