The Tax Foundation has more on why tax credits for Hollywood are lousy public policy.
As for lousy movies, Shyamalan’s Lady in the Water – which received a $6.2 million taxpayer grant (before the creation of the tax credit) – is truly rank. I was thinking of seeing Shyamalan’s newest film, but probably won’t now. That Ebert loves it and audiences hate it is disouraging, and John Lott offered disappointing spoilers. But mostly, I don’t want to give more of my money to filmakers (tickets) who will lobby for more of my money (taxes).