While not a big fan of using this type of public tax engineering in the first place, the analysis is flawed in that it assumes that the alternative case would be for Disney to make the film in Michigan under the existing tax rates. Simply put, if they didn’t get the tax incentives they would have made the film elsewhere and Michigan would have seen no tax revenue at all. The idea that it “cost” the state $X is false.
The answer lies in reducing tax rates on all businesses to a level where it makes sense to locate your business in a particular state.
The problem is with picking winners and losers.
Basically I wouldn’t have an issue if all businesses got the same deal.