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US Lawmakers Want to Exclude Violent Video Game Creators from Tax Breaks

Upcoming tax reform bill in the US includes a clause about developers and publishers who make violent video games.

The Washington Examiner claims that the tax reform bill will refuse to give violent video game creators a tax break.

“On page 19 of the executive summary, the committee mentions an improved and permanent research and development tax credit, which has benefitted countless industries from manufacturers to software creators to food producers," the newspaper states. However, on page 24 of the bill, it "removes that tax credit from the violent video game industry, under a section about closing loopholes… One of the plan’s provisions: ‘Preventing makers of violent video games from qualifying for the R&D tax credit.’”

Even more strangley, the bill's summary om the following page claims the bill "stops the practice of using the tax code to pick winners and losers based on political power rather than economic merit.”

The Examiner further surmises that the bill would affect a company if it made violent video games at all, no matter if it also made non-violent games. They used EA as an example, showing the EA publishes Battlefield and also publishes FIFA and The Sims.

I'm not entirely sure what that proves and what they hope to achieve, but are they going to be "fair" with this and include companies who publish other forms of violent media? What about violent movies, comics, or books? Any reason why video games are targeted alone?


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15 post(s)
Reader Comments
antonphd Feb 27 2014, 10:42 am EST
movies aren't getting the tax break for R and D. and it's absurd that video game companies are getting the tax break. i've worked in video games for 8 years and there's no goddamn way we should be getting an R and D tax credit for making entertainment. right now, i'm on a break from full time game development to do something actually useful to society (3d mobile GIS) and THAT is what the R and D tax break is for. for helping society not for making it less expensive to make entertainment.

as for choosing to give the tax break to companies that don't produce violent games... hey, man, we just came this close to letting bigots refuse service in one of our states yesterday, so, none of our idiotic hypocrisy should be a surprise.
  RenegadeCZ: Maybe they could differentiate bethween actual develo…
antonphd: I'm American and I am honestly proud of my country fo…
im_stardust Feb 27 2014, 11:37 am EST
It's not absurd. It's smart. This sort of entertainment is a form of religion.
raptor Feb 27 2014, 11:44 am EST
Just face it, the U.S. government is greedy, corrupt and downright evil. They just want more money so they can waste it.
  RenegadeCZ: Downright evil... Yeah. Did you also know 9/11 was an…
Reikhardt: @Renegade: ROFL!
im_stardust Feb 27 2014, 12:25 pm EST
While the other governments of the world are honest, good.and sincere.
araczynski Feb 27 2014, 01:00 pm EST
flat rate across the board tax, you can bitch about it all you want with whatever stupid studies you want to quote, but its the only 'fair' way to tax. no loopholes, no excuses. you buy something, you pay. you don't, you don't.
Vodoo Feb 27 2014, 01:14 pm EST
fucking inbreds.

what about guns you imbeciles, they're still as cheap as a bag of chips in America.
  RenegadeCZ: How expensive should they be? A mid range AR for 1500…
DRAVNT: I was thinking the same thing as RenegadeCZ. Go to W…
RenegadeCZ: I still find it funny you can buy real firearms in a …
Vodoo: i don't want to explain hyperbole. weapons are che…
im_stardust: If it was up to me, I'd give guns to everybody, cheap…
Cheddar: The politicians wanting to pass this bill are the far…
RenegadeCZ: Of course you don't Vodoo. Now, yes, the price to kil…
Vodoo: i know, i know. besides, whatever insult i could c…
Cheddar: That we can agree on.
Vodoo: i beg your pardon Camembert, the exaggeration works j…
Cheddar: "i beg your pardon Camembert, the exaggeration works …
Vodoo: i am experiencing 2 very conflicting emotions right n…
Cheddar: I'm just busting your balls. Don't worry about it. …
touretul Feb 27 2014, 02:06 pm EST
does the members of USA government, which spreads war all over the world, get tax breaks? I'm just curious.
tei187 Feb 27 2014, 02:10 pm EST
if i wanted to buy a firearm in my country i would have to finish some sort of firearms course, prove not having a criminal record, pass mental tests and some other requirements i don't recall (but probably even more legal stuff to fill). plus, the papers cost and have to be renewed every few years or so.
so how does it really work in the US? stories go on about getting a free firearm while opening a bank account :P
  stochinblockin: Different states have different requirements and proc…
Xuvious Feb 27 2014, 02:21 pm EST
1st Amendment says WHAT?
Un Om Bun [STAFF] Feb 27 2014, 02:35 pm EST
Ooooh say can you see ?
Avus Feb 27 2014, 03:52 pm EST
i, as a non-American citizen welcome this bill. We (Canada, China, Europe...) will welcome all these "violent game developers" to come here to open their studios.
  Vodoo: as long as your name isn't Curt Schilling.
Vodoo Feb 27 2014, 04:05 pm EST
boredom brings all kinds of information.

just found out that, Curt Schilling (the unfortunate idiot behind Reckoning) has cancer. so if anyone here made a wish upon a star....congrats !
Cheddar Feb 27 2014, 04:15 pm EST
This will never pass.

I mean, in most states even porn movie makers still get tax-breaks.

Besides, ultra-violent movies get tax-breaks. Discriminating against video-games would be an unconstitutional double-standard.

Some dipshits on both sides of the isle (some Dems because they want more taxes as a general rule, some Republicans because they thump their Bibles too often) are including this into the bill just because it's reflex. That doesn't mean it will make it through; it's not as if they really care. It will be challenged by lobbyists threatening Supreme Court action, and the clause singling out video-games will be changed. It's inevitable. It's all just part of the bullshit legislative process.


edit: Er, disregard. I didn't read the article closely enough. Herp derp.
  antonphd: you pretty much nailed it
Neil: But maybe they'll only give tax-breaks to porn compan…
Cheddar: Did I nail it, antonphd? I was lazy and didn't reall…
stochinblockin Feb 28 2014, 08:31 pm EST
Get rid of the progressive income tax and all deductions, and implement a standard flat tax or Fair Tax. That will fix half the problems in this country.
Cheddar Feb 28 2014, 09:01 pm EST
Term limits for Senators, and make organized political parties illegal.

THAT will fix half the problems in this country. Indirectly.
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