In 2040 I will likely be wherever tax journalists go when they die. But the Boeing Co. will still be getting tax breaks from the state of Washington. Gov. Jay Inslee (D) signed legislation this past weekend that will extend the already extremely lucrative tax breaks Boeing receives from the state until 2040. The new gift is aimed at guaranteeing that assembly of the company's 777X plane and carbon fiber wing stay in Washington.
Here is what you (and the lucky people of Washington) should know. First, this corporate welfare will cost the state $8.7 billion. Greg LeRoy of Good Jobs First says it's the biggest tax incentive in US history.
The Boeing cronyism package passed the Washington Senate on a 42-2 vote, and the House of Representatives on a 75-11 vote. That confirms what everyone already knows -- Boeing owns most of the Legislature. But most troubling is that there was no indication that Boeing was thinking about leaving Washington or assembling its jets anywhere else. Indeed, Boeing has been gearing up for production in Washington and negotiating with the labor unions there. It was not going to pick up its plant, engineers, and infrastructure and move to Tennessee or Texas or even down the street. So this is an incentive that provides an incentive for nothing.