Voight and Stallone Lead Hollywood in Asking Trump for Tax Incentives

It was a Sunday like no other in Tinseltown. Just when Hollywood was recovering from strikes and streaming showdowns, President Donald Trump fired off a 100% tariff on all foreign-made movies. Yes, you read that right — 100%. According to Trump, the American movie biz is on life support, dying a “very fast death,” thanks to sweetheart deals offered by other nations. His solution? Slap a huge tax on every flick filmed beyond U.S. borders and bring the action, quite literally, back home. But instead of a standing ovation, Trump got a stunned silence. Then murmurs. Then outrage. And finally? A letter from some of Hollywood’s most seasoned cast and crew.

The Plot Twist

Let’s be real. A 100% tariff sounds more like a villain’s scheme in a Bond film than an economic strategy. Industry vets were quick to call it what it is, a confusing, undercooked idea lacking clear direction, legal legs, or practical sense. Ava DuVernay, director of Selma and Origin, didn’t mince words: “It was thoughtless and lacked any business foundation.” Others warned it could boomerang, triggering retaliatory tariffs from Canada, the UK, Australia, and even New Zealand chimed in to vow support for their film industries.

Skeptics raised real questions:

• Would this apply to streaming giants like Netflix or Prime Video?
• What about movies partially shot abroad, like Mission: Impossible?
• Would American studios get taxed for showcasing a Korean drama or a French indie hit?

No answers. Just a post on Truth Social and a bold claim: “WE WANT MOVIES MADE IN AMERICA, AGAIN!”

Jon Voight, Stallone & Co. Re-Write the Script

Enter Act II. In a plot twist fit for the big screen, Hollywood’s old-school action heroes — Jon Voight and Sylvester Stallone- stepped up not to back the tariffs, but to pitch something smarter: tax incentives. Voight, Trump’s appointed “Hollywood Ambassador” and Oscar-nominated star of Midnight Cowboy (1969), where he played the wide-eyed Texan Joe Buck, teamed up with Stallone, forever known to moviegoers as Rocky Balboa, the underdog boxer who wouldn’t quit, along with the Motion Picture Association, SAG-AFTRA, the Directors Guild, the Writers Guild, the Teamsters, and more. This wasn’t just fan mail, it was a unified front asking Trump to ditch the stick and offer some carrot.

Their pitch? Reboot three key tax provisions:

1. Section 199: A revival of the deduction for U.S.-made film and TV productions, treating them like any other domestic manufacturing.
2. Section 181: Doubling the cap on tax-deductible production expenses to $30 million, a lifeline especially for indie creators.
3. Section 461: Bringing back the option to carry back net operating losses, a boon for productions with unpredictable earnings.

But wait, there’s more: during a meeting with Trump at Mar-a-Lago, Voight and business partners floated the idea of a 10–20% federal tax credit that would be stackable on top of existing state-level credits. That means if a state like New York offers 30%, a federal 20% would push the total savings up to 50%. For producers, that’s not just a perk — that’s a wrap. The goal? Make domestic production attractive without alienating international partners or raising prices for moviegoers. As the letter put it: “These potent tax measures would immediately make America more competitive... and support the independent spirit of American business.”

Hollywood’s Sequel Plan

Meanwhile, states are already elbowing each other to be the next Hollywood. New York just upped its film tax credit to $800 million per year, with perks for studios spending over $100 million. California is in the race too, with proposals to expand its annual cap from $330 million to $750 million, and offer 35-40% credits for productions shot outside Los Angeles. Hackman Capital CEO Michael Hackman, who owns studio properties in both states, summed it up: “If California doesn’t get more competitive, productions will continue to leave.”

Even Gavin Newsom, California’s governor and not exactly Trump’s BFF, is backing a $7.5 billion federal film tax credit, and said he’s open to working with the former president if it means keeping jobs local. As Drexel Heard, a producer and political strategist, put it: “If Trump’s just trying to stick it to California, it’ll backfire. Union workers, indie studios — they’re the ones who’ll pay the price.”

The Climax

The way things are shaping up, Trump’s tariff decree might be more showbiz than show-me-the-jobs. Without clarity on enforcement, cost metrics, or applicability to streaming platforms, the 100% tariff is more of a headline-grabber than a policy paper. And with bipartisan calls for federal tax incentives instead of protectionist penalties, the real solution may lie in the age-old Hollywood advice: follow the money. As Jeff Most (The Crow) warned, “Tariffs would kill the indie market, limit options for viewers, and spark a trade war nobody wants.” Hollywood’s been down, but it’s not out. With legends like Voight and Stallone trading punches for policy reform instead of political theater, and governors on both coasts championing smart incentives, the industry might just script its comeback. Roll credits? Not just yet. But if Washington’s ready to listen, this movie might just have a happy ending. Want smarter takes on tax and policy? Sign up for MYCPE ONE Insights today.