“Every single state is a potential victim of corporate extortion of jobs,” Jay Inslee recently told the Boston Globe. “We’ve certainly felt the sting here and we’d like to change that if we could.” Inslee would like to see a national deal between states that would ban bidding for corporate moves. “In a perfect world that someday may exist, taxpayers won’t get leveraged like that,” he said.
Just which company is Inslee referring to when he portrays Washington State as a “victim of corporate extortion”? Boeing.
Inslee’s ridiculous extortion claim ranks eighth on our list of the most underreported stories of the year.
Lawmakers passed important tax break in 2013
In November 2013, the state Legislature passed “the Boeing tax bill” during an emergency legislative session to keep 777X production in Washington State. At the time, lawmakers from both parties praised the measure as a job-saving measure that would keep billions in manufacturing value inside the state. That sentiment quickly ended for liberals, as Inslee demonstrated by his extreme comments.
But, Inslee isn’t alone in his about-face turnaround when it comes to the Boeing tax incentives. If there was one thing that first-time liberal candidates seeking state office (and a number of the left’s elected officials) had in common during the 2014 election cycle, it was the argument that the Legislature “is willing to let corporations ransack the public treasury.”
Liberals claim Boeing tax break costs state $8.7 billion
Liberals love to point out the Boeing tax measure’s official cost estimate of $8.7 billion from the state Department of Revenue and argue that the bill harms taxpayers. Of course, while $8.7 billion is undeniably a large sum of money, the figure is cited and used disingenuously to fit the political purposes of the far left.
The reality is that the Boeing tax bills costs taxpayers absolutely nothing. It’s a tax break, not a government handout. Moreover, it was mostly an extension of existing special business-and-occupations tax incentives granted in 2003. The tax package was scheduled to expire in 2024. In 2013, the state Legislature extended it through 2040 to cover the expected life of the 777X production line. Ultimately, the measure aimed to align our state’s tax structure with similar taxes on aerospace companies in other states.
The state did not give Boeing money. The $8.7 billion sum was not ever in the state’s coffers—nor would have it been had Boeing decided not to produce the 777X in Washington. Had Boeing moved production, the state’s take on the economic activity surrounding the 777X would have been $0.
Washington State gets $22.3 billion out of the deal
Inslee’s claim of extortion gets all the more absurd when one takes a moment to consider how Boeing would make the money and what Washington State gets out of the deal. Inslee and liberals are talking about extortion of state tax revenue on a project (777X) that did not yet exist and that Boeing would have moved to another state. By every indication, Boeing did not have any intention of producing the 777X in Washington. It’s that fact that produced the 2013 response from state lawmakers in the first place.
You cannot be extorted from (a) money that isn’t yours and (b) money that would not have ever been yours. It wasn’t extortion by Boeing, it was the state asking the company to stay in order to generate some $22.3 billion in revenue through 777X production.
Yes, that’s right. Boeing keeping 777X production in Washington State is expected to generate a whopping $22.3 billion in additional revenue. That’s revenue that would not have existed had not Boeing agreed to stay because it could keep (not take) $8.7 billion of its revenue.
Now, $22.3 billion in additional revenue in return for an $8.7 billion tax break is not extortion. It’s a smart, business-friendly move incredibly valuable advanced manufacturing here in Washington.
Boeing keeping 777X production in Washington State is expected to generate a whopping $22.3 billion in additional revenue.
Not one dollar of which has actually been produced. Stop counting “money that isn’t yours.”
Typical comment from a liberal, secular-progressive pinhead. Of course it hasn’t been produced… yet! That’s the projection of tax revenue that will be generated over the expected life of the 777X program in current dollars.
Who is it that’s supposedly counting “money that isn’t yours”?
That’s the projection of tax revenue that will be generated over the expected life of the 777X program in current dollars.
Yes, it’s money that does not exist. Something which does not exist cannot be owned, therefore the author of this post is counting money which isn’t anyone’s.
So that’s justification for ad hominem attacks. Can you answer the question, though? I saw nothing about anyone counting any money that’s not yours except in your inane comments.
Accurately describing blatantly hypocritical behavior is not an “ad hominem attack.” The author of this post first claimed it was wrong to cite a revenue projection as actual revenue — fair enough — but then cited another revenue projection as actual revenue. So, I told him to take his own criticism. Your inability to comprehend my very plain and direct language is neither my fault nor my problem.
Worse, the revenue projections the author lambastes liberals for citing are projections based on previous revenues. The projection he cites as if it was real money has no such basis; it’s merely self-serving blather from a company which wants tax breaks it has failed to earn.
Also, you can take your dainty sensitivities about “ad hominem attacks” to the guy who wrote this:
The sign I’d like to post on Facebook would say, “MICHAEL MOORE IS A MEATHEAD!”
Please do let us know his reply, would you?
Only a liberal, secular-progressive pinhead could come up with such a convoluted explanation to deny ad hominem attacks. The state was only projecting EXPECTED revenue for efforts that included tax breaks for Boeing in order to convince Boeing to build the 777X in Washington State instead of another state.
You, tensor, and your ilk will go to any length, do or say anything, even when it is readily apparent it’s complete and utter nonsense, trying to justify whatever ridiculous or outrageous point you’re attempting to make. Perhaps you ought to quite before you get your head in any deeper.
The only ones who got screwed were the employees who build planes for Boeing!
That’s an interesting observation without an explanation. How were Boeing employees screwed? Do you mean the ones who have or will have union wage jobs in Washington or those who don’t have non-union wage jobs in South Carolina? Just curious if you have an answer for that or are just spewing the typical, leftist, un-thought out union line of crapola.
Since you just let your assumptions bite you in the ass. You must be one of those neanderthal knuckle draggin right wing Trump supporter. Right?
Now that we’ve traded barbs I’ll ask you if you know what went on in the Seattle area concerning the Boeing workers, the company and the union?
If you don’t know and your anti union bias isn’t to great I’ll take you by the hand and walk you through it.
Another lefty, liberal, secular-progressive lame brain heard from. You can’t give a real answer to a legitimate question, all you can do is start running at the mouth with ad hominem attacks and insults. I’ve leaved in the area all of my life, been involved in aviation since the late 1960’s and live about a mile from the Boeing Everett plant. In addition I retired as an inspector with the FAA a few years ago and volunteered at the Future of Flight and Boeing Tour Center for about 4 years. I still have contacts in the industry so I know a hell of a lot more then you seem to. You’ve got your head so wrapped up in leftist ideology, you can’t see daylight.
I hit a nerve….So you are a Trump supporter! LOL! And of course since apparently you know everything that went on concerning the employees, Boeing and the union then my other assumption about is also true…Your hate for the union goes so far that everything that Boeing and the union did to the rank and file is perfectly fine to you.
FAA? so did you actually work for the FAA or were you one of the hacks that Boeing paid the look the other way?
You, like most meatheads of your ilk, assume far, far too much based on NO evidence. I did work for the FAA for 25 years, but never once stepped on to Boeing property. Your inference of taking bribes is a sign of small mindedness and ignorance.
I don’t hate unions per se, what I hate about unions is their persistent demands for ever more concessions from their employers without the willingness to change themselves and keep up with changing economic and market conditions.
BTW, I was president of my union chapter for two terms from 1993 to 1997. (You do know that there are federal employee unions, don’t you? The advantage is that the federal workplace is like a giant right to work state so being a dues paying member is entirely optional.)
During my nearly 30 years in federal civil service I saw how that employment sector adjusted to changes in compensation and retirement, the biggest being in the mid 1980’s when the CSRS was replaced by the FERS. That change alone lead to federal employees going from and exclusive defined retirement benefit to a plan that combined a significantly reduced defined benefit, a defined contribution and social security plan. Later changes within the FAA exclusively amounted to changes in pay compensation rates and how they were calculated, the elimination of automatic step increases, new rules for promotions and bonuses, and new rules for calculating per diem while on temporary duty away from the home office, short and long term.
Well Clay you were first and biggest in your meat headedness due to your assumption in your first post that I was a liberal.
And if that is the reason you hold unions in disdain then you must be in love with the IAM for the way they walked lockstep with Boeing in screwing (giving back concessions) their members.
There are none so blind as those you will not see. Fits you to a tee. If you’re not a liberal in bed with the machinists union you sure don’t show it.
Wait a minute numb nuts, didn’t you read what I posted or was it just that your assumptions got in the way of your comprehension? I lumped the union in on the whole screwing the rank and file over.
What a Cockwomble
Now you’re using that typical tactic of the liberal left… name calling, insults, derision and ad hominem attacks. What, you haven’t sloughed the race card?
You’re still blind, but that goes along with being stupid.
I only “attack” people who deserved to be attacked, and you just happen to be one of those people who deserves to be attacked.
Your reading comprehension skills are null and void unless it is intentional which is what I presume. And that in it’s self is a reflection on your lack of character, the kind of person you are and are not.
And you, sir, are deliberately obtuse.
Bright enough to peg you for what you are by your second post. Which is to ignore what a person posts so you can continue your unwarranted attacks against them.
Well then, lets’ go back to your first post and my first post… you never responded to my direct question. You went around it in a variety of directions, how exactly and specifically were the Boeing employees screwed?
And you bit yourself in the ass when you assumed I’m a Trump supporter.
You claimed you knew more about the situation (Boeing employees getting screwed) than I….I was just going to let you stick your foot in your mouth.
And no I assumed nothing…You assumed I was a liberal…I accused you of being a trump supporter…..There is a difference.
You must be a union card holding commie lib .Fuck comrade inlee.
I love the, Yo mama intelligence level insult. lol!
They don’t have to work for Boeing. I hear McDonalds is paying $15 an hour. Lol
I LOVE IT, when unions price themselves out of the market. Nothing like shitting in your mess kit. Kansas can build great planes. SCREW SEATTLE.
Boeing’s relocation of some operations was a direct result of Washington State’s hostile business environment, labor-induced production uncertainty, and the demands of competing in a global market. You reap what you sew.
The only reason Boeing is still here in Washington state is the $8.7 billion in tax breaks. They may
well decide to close the doors the next time the two unions go on strike (unless they receive even more tax breaks.) I also disagree that the tax breaks cost nothing. What it means is the money for the ever-expanding budget the politicians come up with has to come from somewhere else. It’s the same path California took in getting $848 billion in debt.