Hollywood and the income tax, 1929-1955. e-journal

This article argues that a dynamic relationship existed during the 1929-1955 period between the Hollywood film industry and the United States income tax system. The relationship functioned on three levels. First, steep marginal tax rates impacted film production, encouraging certain highly paid actors and directors to work less in the 1930s, form corporations in the 1940s, and live and work abr…