Senator Orrin Hatch (R-UT) on Tuesday reminded a luncheon crowd of studio chiefs and other Hollywood heavyweights here in Washington for the day that they’re rich–and the rich pay taxes. Lot’s of them. And they will soon pay even more taxes under the Obama Administration, which intends to raise the top marginal income tax rate for individuals who earn more than $250,000 a year, a category that included a good portion of Hatch’s audience (although, sadly, not Media Wonk).
Hatch offered his pointed comments on taxes and the administration at the end of otherwise light-hearted remarks at the Business of Show Business event organized by the MPAA to showcase Hollywood’s economic firepower in front of lawmakers and appropriators.
Hatch’s goal, presumably, was to remind the heavily Democratic Hollywood crowd that they’re going to take a hair cut under the guy many of them helped elect, and that it is Republicans (although he didn’t say so directly) who can be counted on to look out for the fortunate.
“Contrary to what the Obama Administration is promising, they will not be cutting taxes fro 95 percent of Americans, they’ll be raising taxes for 100 percent,” Hatch said, pointing to the huge fiscal stimulus that will eventually have to be paid for and higher taxes planned for many industries.
“They’re looking for a $210 billion tax increase on U.S.-based multinationals that earn revenue from overseas subsidiaries, a category that includes many of your companies,” he noted. “Make no mistake, the revenue needs of this administration are gargantuan.”
Getting more personal, Hatch noted that “the film-making industry has not received very good treatment from this Democratically controlled Congress, which seems to want to punish success.”
And by implication, the successful.
“Think about what happens if they’re not able to get the revenue they need from these other sources,” he said. “Where do you think they’ll look?”
The Senator didn’t seem to think he needed to answer that question so he didn’t. After perhaps one beat too many of awkward silence and silverware fidgeting against china, he closed with a joke about Mormons, which seemed to make everyone happy.