U.S. President Donald Trump urged Congress to approve tax incentives for the entertainment industry, claiming it is necessary to combat the exodus of entertainment production abroad. The measure represents a priority for the Trump administration regarding the cultural sector's industrial policy.
The proposed tax incentives for Hollywood are a long-standing demand by major film studios and the unions representing entertainment industry professionals in the United States. These industry stakeholders have regularly pressured the federal government to obtain tax benefits that make it more attractive to produce in the United States rather than resorting to foreign locations.
The Trump administration argues that tax incentives would be essential to halt the flight of film and television productions to other countries, where production costs are often lower due to more favorable tax policies. This dynamic has led many major studio productions to be filmed outside of American territory.
