McKenna (AG-elect)Says He'll Re-Examine Boeing Deal

Seattle Weekly ^ | 11-24-04 | Rick Anderson

[truth49]

When he assumes office Jan. 12, Attorney General–elect Rob McKenna says, he'll take a new look at the $3.2 billion state tax "incentive" given to Boeing in return for its agreement last year to locate the 7E7 assembly plant in Snohomish County. "There are some outstanding legal issues to review," said McKenna, a King County Council member elected to the state post this month. He wouldn't discuss the issues, but said he opposes any similar tax giveaways. "I don't think we can ever replicate the Boeing package," McKenna, a Republican, said in an interview last Friday, Nov. 19, during the Prosperity Partnership meeting at Qwest Field. "We'd bankrupt ourselves."

Unresolved conflicts surrounding the Boeing giveaway, formulated by Democratic Gov. Gary Locke and approved by the Legislature, include the state's involvement of a consulting firm from Deloitte & Touche. Though Locke never disclosed it publicly, the firm was also Boeing's private consultant and its corporate outside auditor, with a direct financial interest in seeing Boeing get a favorable state deal. Questioned by Seattle Weekly, the governor's office later claimed its contract with Deloitte was vetted by the attorney general's office. But the AG's office denied ever seeing the pact. The governor refused to explain his failure to follow state law (see "Disinterest in Conflict," March 24).

McKenna, as AG, will deal principally with legal and regulatory issues. But during what he characterized as a sort of farewell policy speech at the Prosperity meeting, he told corporate leaders, "We can't continue to cut taxes to get a company to stay here." He was introduced to the audience by Boeing Commercial Airplanes Vice President Bob Watt, who noted, "He's really good at what he does."

[truth49]

If not for the state of Washington subsidies for Boeing, Bush probably would have had a slam dunk WTO case against Airbus. Now though, I think he's set himself up as well as Boeing for massive WTO penalties. He only has himself to blame though. We should not be subject to the whims of these international bodies.

As for the state of Washington Boeing subsidies, check these links out: http://www.effwa.org/pdfs/boeing_olympus.pdf
http://www.effwa.org/pdfs/boeing_olympus_ex.pdf

[COEXERJ145]

If not for the state of Washington subsidies for Boeing, Bush probably would have had a slam dunk WTO case against Airbus.

Not likely. The WTO will never rule against the EU and Airbus.

[pepperdog]

Yep, Boeing is rapidly becoming the liberal equal of Halliburton.

What people don't seem to understand is Boeing was instrumental in keeping the economy from becoming too lopsided for many years, that is to say contracts from foreign companies for Boeing airplanes helped us keep the balance from being too far out of kilter. Airbus, financed by EU governments has been dogging Boeing for years and now seems to have finally taken a lot of their business. Airbus couldn't do this without being on EU's dole.

If one doesn't like the tax credits for Boeing try considering tariffs on Airbus. There has to be someway to compete with foreign companies that are government financed. I certainly don't presume to have the answers but I do know that Boeing is being shafted by the foreign quasi "competition".

Having spouted off above I'll continue with a criticism. The stupidest thing I've ever seen Boeing do is locate in Chicago. Probably the most politically corrupt city in the most politically corrupt state in the union. And lousy flying weather to boot. What were they thinking???

[truth49]

One word, Speaker of the House. Boeing's move to Chicago was to garner great political influence. If I had the choice of Sen. Patty Murray or Speaker of the House Hassert, it be a no brainer as far as who I'd want greater access to.

[Parmy]

That's exactly right. Furthermore, Boeing doesn't have to mfg. in Washington state. It has plenty of facilities elsewhere to do the same things. If Boeing finally leaves, since the hq. is no longer here, in WA, then it is relatively easy to relocate to a more favorable business climate.

And, for those who are advocates of 'business paying their fair share', understand this. Businesses do not pay taxes. They collect them. The true payee is the purchaser of the product the business sells or mfgs. In other words, the cost of taxes is built into the purchase price.

[JosefK]

Good points. I tend to agree. AND think Boeing should pay ANY AND ALL fines!