Forbes.com contributor: "Washington Lawmakers Grandstanding Against Boeing Could Cripple State's Aerospace Industry"

By: Mary Strow
12:00 am
June 7, 2016

Writing on Forbes.com yesterday, Travis H. Brown sets his sights on "politicians in Olympia [who] have repeatedly floated the notion of clawing back the aerospace tax incentives."

Earlier this year, Representative June Robinson (D-Everett) introduced a bill that put caveats on Boeing’s ability to receive the full benefits of the 2013 tax package. The legislation (House Bill 2638) did not pass, but if it had, its effects on Boeing in particular and the Washington State aerospace industry in general would have been crippling. As written, the bill would have caused Boeing to lose an entire 50% of its tax break due to reductions in the workforce over the past two years.

…In a disappointing show of political gamesmanship, even the state’s governor is insinuating that Boeing’s tax package could find its way to the chopping block. In a recent radio interview regarding HB 2638, Governor Jay Inslee said, “A bill did not advance to my desk this year, but it will not surprise me at all if we take a look at this in the 2017 session.”

…the issue is destined to resurface again, due to labor-union pressures and some politicians’ persistent attempts to break Washington’s promise to Boeing. While the legislation has been Boeing-specific to date, if passed the claw-backs would have a chilling effect on Washington’s aerospace industry as a whole, as hundreds of suppliers do business with the company.

Earlier this month, Seattle Times editorial board called the aerospace tax credits one of “the best investments made by the state of Washington over the last decade.” Olympia politicians would be making a huge mistake to put this investment in peril. By going back on its word, the Washington State legislature would do a great disservice not only to Boeing employees, but also to the thousands of Washingtonians who depend on the company as a major economic driver.

 

Categories: Categories , Economy , Tax Policy.
Tags: aerospace , Boeing , tax incentives