Washington Tax Plan Would Punish Violent Game Makers

thepyrethatburns

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One wonders what tone the Escapist would have taken with this article would be if the word "violent" was replaced with "sexist".
 

SamTheNewb

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BrownGaijin said:
I kept thinking about games such as "Long Live the Queen", and "Papers Please", and wonder where they fall under.

I guess this is the part where we "Get Angry".
They probably, or rather their creators probably fall under, we don't even know how to get tax credits...
 

Sarge034

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So I'm seeing that lawmakers what to take the R&D tax credits away from "violent" video game devs. My question is how did they qualify for the R&D credits in the first place? To the best of my knowledge R&D stands for Research and Development but not development in the sense of producing a thing in mass. Perhaps I just don't understand the law but it seems kindda sketchy that any video game dev would be able to get those tax credits.
 

Gorrath

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Sarge034 said:
So I'm seeing that lawmakers what to take the R&D tax credits away from "violent" video game devs. My question is how did they qualify for the R&D credits in the first place? To the best of my knowledge R&D stands for Research and Development but not development in the sense of producing a thing in mass. Perhaps I just don't understand the law but it seems kindda sketchy that any video game dev would be able to get those tax credits.
To answer your question, this particular tax credit is meant to provide a level playing field for American goods in markets where other countries offer similar government backed incentives and credits to their companies. The "what qualifies as R&D" part is very much secondary to the purpose of the credit.

As to why the credit might apply to game developers though, one could make the argument that the development of new software engines or even just middleware could qualify as R&D, even if it's eventually packaged into a product that's sold to the masses. Afterall, any successful R&D is likely to eventually end up in some kind of popular product.
 

Stabby Joe

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Canadian studios have already been praying on UK developers since they have no tax breaks there yet. Now I can see them doing the same in the US.
 

Mortuorum

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Oct 20, 2010
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So... we encourage video game development to go overseas like all other American industry? And so, politicians will keep pointing fingers at businesses for "taking away American jobs". Sorry, Congress, business leaders are just making economically-sound decisions based on the rules you imposed.
 

Something Amyss

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Dec 3, 2008
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Neronium said:
True, but I just wanna remain as neutral as possible in my posts about politics really.
It's not neutrality that bothers me, it's appeals to false equity or statements to the tone of dishonesty. When someone is pointing to a trend, pointing out there are exceptions borders on the latter. The previous post I addressed was certainly the former.

Neutrality isn't pretending both sides are equal offenders or the like. Neutrality involves being willing to call people out when they do wrong.The educated tend to run liberal to the point that conservatives have accused colleges of being liberal indoctrination and there to be a large ants-intellectual movement in this country. And yeah, there are a lot of dumb liberals, but that wasn't the thrust of the argument you addressed.

Honestly, the left has enough problems to deal with I don't see what's wrong with calling them on their own bullshit instead of some sort of false equity claims.

EDIT: To clarify, I used to count as a moderate. My views haven't really changed, but about a decade or so ago, suddenly people like me became super liberals and elitists and whatnot. went from being slightly left of center to being accused of fellating Noam Chomsky. Despite that, I still vote Republican sometimes in elections (Vermont doesn't register people), though less so because of that same doctrine that basically reviles liberals and moderates. I've watched some awesome Republicans in New England get primaried or leave office in disgust with their party, and now we're not just seeing it in the Northeast.

I don't particularly have an anti-Republican bias, but I do think a lot of what's been going on of late is absolute garbage and they need to be called on it. Since you addressed your political leanings, I figured I would clarify where I'm coming from. I border ideologically on libertarian, though I refuse to throw down with the sociopaths of the Libertarian party.

Neronium said:
I find it terrible that the law was even thought of in the first place honestly. It'd definitely go to the Supreme Court in which they'd slap down that law as unconstitutional since it's basically another Brown v. Board of Education, only replace "African American" with "homosexual".
The Supreme Court that neutered the VRA and opened the floodgates of discriminatory voting laws? I'm not so sure.

thepyrethatburns said:
One wonders what tone the Escapist would have taken with this article would be if the word "violent" was replaced with "sexist".
The article or the forum? For the latter, I'd assume it'd start with a bunch of people raging that games aren't sexist.
 

medv4380

The Crazy One
Feb 26, 2010
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Saltyk said:
After reading the discussion, I have to say that I feel this should either be for all video games (and probably some other media such as movies) or none. I also have to wonder why not violent movies or TV shows? Obviously, we all know the answer, but it still is a question to be asked.
Because it's in reference to the Research and Development Tax Credit and Movies and TV shows don't get it. Arguably, video games don't do much research into new technology, and they shouldn't be getting it at all, but they expanded it so far that Video Game Companies could claim it, and take valuable tax dollars that should be going towards artificial limb, cancer cures, or god knows what else. It probably effects all Video Games if you read the draft of the bill, and not the executive summary. The executive summary is to get votes. No one cares if you cut the tax for all video games, but a few do care if you phrase it as it cuts funding from Violent Video Game makers. Technically true, but is a lie of omission.

What I would like to know is what game companies actually took advantage of the R&D exception. If say Call of Duty is claiming the exception I'd argue it fails on the overly broad "uncertainty" of development. Then again most games fail that and are just clones of someone elses game. Indies might be able to claim it, but are usually too small to afford a lawyer and accountant that can do the needed footwork to get it.
 
Apr 5, 2008
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This is a fantastic idea. I especially love how it claims "American manufacturers the certainty they need to compete against their foreign competition who have long had permanent R&D incentives." when it's actually taking away the incentive.

The net result of this is really simple. "Violent" video games would end up being made in Montreal or other countries with more favourable dispensation toward developers. It would mean less American talent creating games, less games getting made in the US, US publishers outsourcing development to other nations, less taxes for the US govmt. and more American dollars leaving the country and going to other countries developers.
 

medv4380

The Crazy One
Feb 26, 2010
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KingsGambit said:
snip...

It would mean less American talent creating games, less games getting made in the US, US publishers outsourcing development to other nations, less taxes for the US govmt. and more American dollars leaving the country and going to other countries developers.
Not really. The intention is to remove the exemptions and lower the tax rate. Ideally it would be revenue neutral, but coming from republicans corporations will probably pay much less then they already do.
 

thepyrethatburns

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Zachary Amaranth said:
thepyrethatburns said:
One wonders what tone the Escapist would have taken with this article would be if the word "violent" was replaced with "sexist".
The article or the forum? For the latter, I'd assume it'd start with a bunch of people raging that games aren't sexist.
The article. I have a feeling that, if this were about sexist games, the Escapist would be praising it as a bold move to address gender inequity

If I were to wonder anything about the posters, I would quote something like:

KingsGambit said:
This is a fantastic idea. I especially love how it claims "American manufacturers the certainty they need to compete against their foreign competition who have long had permanent R&D incentives." when it's actually taking away the incentive.

The net result of this is really simple. "Violent" video games would end up being made in Montreal or other countries with more favourable dispensation toward developers. It would mean less American talent creating games, less games getting made in the US, US publishers outsourcing development to other nations, less taxes for the US govmt. and more American dollars leaving the country and going to other countries developers.
and openly wonder about whether there would be the same level of outcry if "video game company" were replaced by "oil/gas company"
 

Little Gray

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Saltyk said:
After reading the discussion, I have to say that I feel this should either be for all video games (and probably some other media such as movies) or none. I also have to wonder why not violent movies or TV shows? Obviously, we all know the answer, but it still is a question to be asked.
Im going to go out on a limb here and say that its because this is an R&D bill and there is no R&D involved in making movies or tv shows.