First, via SeattlePI.com:
A Democratic state lawmaker has introduced a bill that would cancel the $3 billion in tax breaks Boeing gets in Washington state if the company moves too much work to a new South Carolina facility.Rep. Morris
Rep. Jeff Morris, D-Mount Vernon, dropped House Bill 3107 on Monday. It says that the company’s generous tax exemptions will be eliminated if any 787 assembly line in Washington falls below 50 percent of its total production.
The full post, over here.
Next, here is Rep. Morris’s full press release:
OLYMPIA – After examining the fine print of a $900 million gift to the Boeing Corporation from South Carolina officials, some Washington legislators want to make sure the money invested by our state to keep aerospace manufacturing jobs here isn’t subsidizing jobs there.
Speaker Pro Tem Jeff Morris (D – Mount Vernon) introduced legislation today to attach similar strings to our tax exemptions as attached to those offered by the Southern state.
Beginning in 2003, when the fate of Boeing’s new Dreamliner assembly hung in the balance, Washington lawmakers passed a package of tax breaks and other incentives to keep jobs here. The package has amounted to more than $3.2 billion in direct benefit to Boeing over the years.
The plan worked – for a while. After benefitting from the special attention, the Boeing Company has announced in recent months it is moving some of the Dreamliner assembly to South Carolina.
Morris led the legislative effort to put the 2003 package together.
“Boeing has changed the nature of our relationship with the South Carolina decision,” said Morris. “They made a business decision. This is a business decision we need to make to protect Washington State taxpayer’s interest.”
His bill, HB 3107, simply states that the tax exemptions will be cancelled if any 787 assembly line in Washington fall below 50 percent of its total production.
“This is just better business position for Washington State to be in regard to our existing and future aerospace manufacturing,” said Morris
For more information on the House Democrats’ aerospace tax exemptions and government streamlining package:
http://housedemocrats.wa.gov/Aerospace_Handout.pdf
January 25th, 2010 at 12:00 PM
Sounds good to me! Boeing has been threatening people for years, and have been exempt from taxes that have been crushing our small businesses. Unlike our refineries, who care about the community, Boeing constantly threatens their employees, local governments, and everyone else. Thanks for representing me, Rep. Morris!
January 25th, 2010 at 12:12 PM
I’m confused, I thought our WA state constitution specifically outlaws tax breaks for individual corporations. So by repealing these incentives, which the Democrats were happy trumpteting as achievements in their own handout as follows:
How do they plan on continuing to be the world’s leader in aerospace? Are they saying that if Boeing leaves we should punish the rest of the aerospace industry in our state?
January 25th, 2010 at 12:59 PM
Sounds like a good program to make Boeing pull up and leave completely, kinda like the foresight the machinist union has demostrated to date with their negotiations, makes one wonder where ole Jeff gets his marching orders from, don’t ya know!
AFY!!theheelotsheepdog!!!
January 25th, 2010 at 4:47 PM
Such tax breaks, especially with essentially no strings, are just bribes.
State governors & city majors should get together and agree ‘no more tax breaks, period’. It’s ridiculous and very costly to tax payers.
After Boeing squeezes all the juice from S. Carolina, it’ll move on to the next sucker city/state who pays the biggest bribe, and eventually out of the country entirely. Elected dodos in both parties are to blame for this nonsense. But gee, maybe they *aren’t* dodos, just more me-firsters — somewhere along the line, whether in campaign contributions or others, those who vote to bribe companies to come, stay, whatever benefit.
January 25th, 2010 at 11:24 PM
Maybe Boeing should go then let Airbus move in on there old premises. That would really give Boeing a real headache then.
January 26th, 2010 at 2:21 PM
What is the annual financial benefit Boeing brings to Washington State?
How was the original subsidy bill written, and is the legislature potentially reneging on the deal? And if so, would Boeing have a claim against the state?
So let’s say Boeing wants to keep half the 787 in WA so that they keep the tax breaks. Chances are that future projects will NOT be in Washington because Boeing no longer can trust our legislature to renege.
Really, no company should get a government preference over another, but having done so, you better prepare for the ramifications. This is one way the legislature will reduce traffic congestion on the I-5. Scare off the companies, scare away the jobs, lose the taxpayers.
Oh but it makes for good political theater.
January 26th, 2010 at 9:20 PM
AFY is rightfy!
This is the same kind of thinking that puts onerous regulations on box stores in Bellingham.
January 27th, 2010 at 7:02 AM
Hey Davesix, you ever see Penn & Teller do Walmart?
http://www.youtube.com/watch?v=65aLfKke7IM
It is all the same!
AFY!!theheelotsheepdog!!!
January 27th, 2010 at 5:37 PM
[...] Andrew Garber at Seattle Times blog Politics Northwest is reporting that House Finance Committee Chairman Ross Hunter, D-Medina, will not hold a hearing on Mount Vernon Democratic Rep. Jeff Morris’s bill that would strip tax incentives for Boeing if it left the state. My previous blog post on Morris’s bill, over here. [...]