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Washington state Offered Billions in Illegal Tax breaks to Boeing

A World Trade Organization panel on Monday ruled that Washington state offered billions in illegal tax breaks to plane maker Boeing, and that the U.S. government must take action to end the plans within months. ( More...

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Roy Hunte 13
May I ask what is the difference between this and what the European governments did for Airbus? Both have done it.....
Torsten Hoff 8
Notwithstanding any arguments about right and wrong, Boeing's airplanes have historically benefited from loans to buyers through the Export-Import Bank of the United States, which has provided low or no-interest loans to promote the purchase of American-made products.

Airbus has received subsidies at the production end, while Boeing has received it at the sales end.

I guess the WTO sees the tax breaks by Washington State as double-dipping.
Martin Stark 2
Thanks for posting this. I hadn't thought about the double-dipping angle since I had assumed the EU had an analog for the EXIM bank. I wonder why they don't?
linbb -1
Guess it depends on which end of the stick you suck on. Airbus has as many if not more than Boeing ever had or will have. They are tied to the EU just the same if not more so.

Oh forgot this is an Airbus bash Boeing forum anymore, no Airbust AC ever have problems at least very few reported on here but every time a Boeing AC farts its reported on here.

Don't mind reporting but its so once sided in the last two years now its a crying post for the EU produced AC.
Ed Merriam 2
air's always been a sector characterized by fat cost-plus military contracts, loud denial of subsidies, and national pride
quit yer fussin
honza nl 3
there basicly is no difference, that is why the WTO also ruled against Airbus in another case brought by Boeing. The bottom line is simple: both Boeing and Airbus get big subsidies, one way or another.
Allan Bowman 4
The supreme court ruled that "corporations are persons". Therefore Boeing is just another on the dole welfare bum. Can't make a go of it as a business their hands deep in taxpayers pockets while crowing about the miracle of US Capitalism. Sounds like a bunch of socialists to me.
I am interested in aeroplanes all aeroplanes and all aspects of aeroplanes. I am not interested in silly squabbling over who get this or did not get that.
Tax breaks are common in all forms of business. Often used by governments to prop businesses up to keep business in operation thereby keeping jobs, They can also be used to attract business once again to create jobs.
I am sick of reading it in the press and I don't expect it or like to see it on a site where I go to look at aircraft.
If all you can think about is this sill nonsense set up your own site to fight it out and may the last man alive have learned his lesson
Chris B 5
Game of Subsidies. Obvious and Hidden. Played by both sides.
Rob Palmer 2
Yes, but there never can be enough jobs for full employment as in WW II. Why I propose over and over the twenty hour workweek with many jobs split in two for two people. There are simply too many seeking employment at any given time. Corporations are big boys, we need not worry about them; they have indeed had it there way for far too long. I believe in people over corporations, and no, I am not a socialist.
AWAAlum 1
Wouldn't that scenario cut the currently employed worker's salary in half? I don't mean to sound calloused, but that likely wouldn't be a livable wage, and would put two people in dire straits instead of one. Doesn't sound like a solution to me.
Joseph Cooney 1
The issue on this is ANY jobs as opposed to not enough.
Joseph Cooney 3
The WTO is one of the agencies Trump has indicated he would withdraw the US from. To have an international organization dictating policies of the United States let alone the State of Washington in their attempt to salvage American Jobs is unconscionable. Hopefully we will ignore the so-called "ruling".....
wylann 4
Of course, the US uses the same WTO against other countries all the time. Goose...gander...all that.
linbb 4
Let them suck eggs Airbus has as many if not more than Boeing and are no where near the same. Its just sour grapes from them trying to gain more market share.

State tax breaks that Boeing gets helps the state in the long run due to employees who work there pay taxes into the state coffers and the business they generate pays back many times over.
AWAAlum 3
There is no state tax in Washington.
There is no state personal INCOME tax in Washington. They do have property tax and B&O (Business and Occupations) tax, among others. So there are ways to cut taxes for businesses in Washington state.
Jeff K 0
Exactly correct. It is the STATE of Washington providing incentives to Boeing to expand and maintain it's work force in the STATE. Boeing will receive rebates from the state for investing billions in expanding it's facilities and airplane programs. This is NOT some form of Federal funding of new development which would be similar to what the multiple governments in Europe that do provide direct funding for Airbus.
Roy Troughton 2
Presumably the WTO has never heard of States Rights. It was the State of Washington that agreed to these tax incentives so that Boeing would build the B77X in the state. Hopefully the new Trump administration will tell the WTO, EU and Airbus to go fly a kite.
Randy Marco 2
You obviously don't understand trade or civics, as a state is part of GOVERNMENT and Government is therefore subsidizing Boeing. I know facts are inconvenient for trump supporters, perhaps educate yourself at your earliest convenience for the sake of humanity.
joel wiley 2
Perhaps not a knockout.
It seems Boeing is expecting a reversal on appeal:

And Forbe's take on it:
ffrcobra1 0
Look at the source. That tells you all you need to know about the objectivity of the reporting.
joel wiley 5
Do you mean the source Reuters, Forbes, or Airbus?
Gene Poon 2
Trump needs to tell the WTO and the EU to F*** OFF.
honza nl 3
Yes ! And if then EU and China do the same with the US, to who then Boeing will sell its planes?
Hugh Somsen 1
What Difference does it make? Screech!
Allan Bowman 1
what a surprise ----- NOT.
James Simms 1
And? ...........
The and is I don't like all this petty squawking over who is more right or wrong over Boeing OR Airbus getting Govt funding.
It's bad enough With the EU and the US Govt followed by Airbus and Boeine fighting it out.
Keep this site just aviation for aviation sake.
But having said that I know that there is a strong division between Airbus and Boeing suporters.
Personally I just prefer the heavy metal, the practicality
and aesthetic qualitis
Some might say I am just and old grouch I guess because my worsening disability means my passion of flying is now virtually lost to me
AWAAlum 1
Derek - My sympathy concerning your disability causing your loss of flying. However, I guess this may be my evil twin speaking up, but it strikes me as wryly humorous that you're so riled over your perception of what are appropriate topics for this site, and then add a sentence that completely blows up your stance re aviation for aviation sake.
Justthefacs 1
Why should we even care what a "world Trade" organization has to say about anything USA. Boeing is just playing by what is best for us. Let he who has not sinned throw the first stone. This is a case of the pot calling the kettle black.
David Webb 1
The WTO is irrelevant. WHO cares what they think...?
Maybe Trump should take a critical look at the WTO next...
honza nl 3
with all his Goldman Sachs friends he is selecting? Do you really believe they do what is good for Joe Sixpack?
Joseph Cooney 1
I agree with Roy 100% this organization does not have the interests of American workers on its agenda. Nuff said.
honza nl 4
Yes, what a surprise ! Maybe because the US is not the centre of the world?
Brian Mccoy 0
In my opinion who cares what the world trade organization thinks of what a state does for a US company
Joseph Cooney 0
Agree 100%. Time for us to withdraw from these agencies including the World Court and move the UN out of New York.
honza nl 5
Yes ! ps: then don't be surprised if countries outside the US don't buy US products anymore. The price you pay for egoïstic isolationism..
joel wiley 0
Well, is seems Boeing is expecting a reversal on appeal:
linbb 0
Would hope so but with the EU who knows they are always in finical trouble and trying to figure out how to make the US pay for it.
joel wiley 1
WTO has a track record of reversal on appeal.
Joseph Cooney 1
Why even dignify the ruling with an appeal. It is non-binding and they certainly have no jurisdiction over individual states even if we did take them seriously. Which I hope we do not.
Thomas Clark -1
Who gives a Rats Ass what the WTO thinks sez or does. If they think we believe that France, Germany, England or any other European country isn't helping AirBus they are mental midgets!
Gregg Ludlam 0
Where does the WTO get off telling a US state government what they can or can't do to attract business with a company HQ'd or having a prominent footprint in their state? Like some else said above, "Hey WTO, f#$k off!" :)
Lynn Pilcher 0
The United States should remove themselves from all trade agreements. All these trade agreements have several common features, it benefited a few people(the Clinton's come to mind) will millions of dollars and it handcuffed the American industry with one sided agreements that would be unlawful in our courts.

Trade agreements by a few for the few will always have a negative impact on the many.
MH370 0
(Duplicate Squawk Submitted)

Boeing tax break ruled unlawful by WTO

The US has been given 90 days to drop a special tax exemption for the giant aerospace company Boeing because it amounts to an unlawful subsidy.
The World Trade Organization (WTO) made the order after investigating a complaint from the European Union.
MH370 0
(Duplicate Squawk Submitted)

WTO delivers knockout blow to Boeing’s record-breaking subsidies with historic ruling

Extends the WTO’s earlier condemnation of massive illegal subsidies to Boeing to 26 billion USD in the form of wholly non-refundable corporate welfare. This is the single largest state-level instance of corporate welfare in US history.
William Mihok 0
So what. Screw AirBus
Steve Miller -2
Trump is HERE now, AMerica First!
Randy Marco 4
No..... you've been conned it's trump and the 1% first, the rest of us will be getting the barbed wire enema... ignorance is truly bliss!
billy pell 0
Not to mention the exemptions they received in the Philippines to move to the Clark Air Base duty free zone that hurt local mom n pop shops. The locals are none to happy with the raw deal Boeing broke off in that country


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