Yglesias » Film Subsidies

Are film subsidies a good idea? Do they correct a market failure that is big enough to justify the taxes? I also wonder about subsidies to sports teams. 
Yglesias » Film Subsidies:

why would you think a target tax subsidy for the movie industry is a smart economic development strategy. Let’s say you start with a certain quantity of public services and a balanced budget. Your money’s coming in from property tax, sales tax, income tax, and a few licensing fees. Now it’s definitely true that a tax break for folks who film movies in your city might spur some additional business activity in your city. But you’ll have to pay for it with either higher taxes or else fewer services. Won’t the higher tax rates just offset the positive impact of the targeted tax break? And if you’re willing to live with fewer services in exchange for lower taxes, wouldn’t it be more beneficially to cut rates across the board?