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McKenna (AG-elect)Says He'll Re-Examine Boeing Deal
Seattle Weekly ^ | 11-24-04 | Rick Anderson

Posted on 11/24/2004 8:55:32 AM PST by 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."


TOPICS: Business/Economy; Crime/Corruption; Government; Politics/Elections; US: Washington
KEYWORDS: 7e7; boeing; taxgiveaway
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1 posted on 11/24/2004 8:55:35 AM PST by truth49
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To: truth49

See Also:

The Boeing contract and the state's Constitution
http://www.effwa.org/highlighters/v14_n2.php


2 posted on 11/24/2004 8:56:16 AM PST by truth49
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To: truth49

I would be a lot happier if McKenna's highest priority was to clean out 20 years of Democratic corruption in the political and judicial systems, and clean out the criminals in the King County elections office.


3 posted on 11/24/2004 9:01:41 AM PST by Publius
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To: truth49

Rob is going to be the best AG this state has ever seen... Give him 6 years as AG and he'll clean this state up... There is no more honest or qualified guy in Washington State politics...

Then in 2010 he'll take a Senate seat...


4 posted on 11/24/2004 9:10:46 AM PST by Gustafm1000
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To: Publius

Don't worry, it is very high on his punch list. I've had several conversations with him about that during the campaign. He's going to do a great job.


5 posted on 11/24/2004 9:15:15 AM PST by bigfootbob
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To: bigfootbob
He's going to do a great job.
I agree!
6 posted on 11/24/2004 10:33:11 AM PST by vox_freedom (Fear no evil)
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To: truth49
You should also check out http://josef-a-k.blogspot.com/2004/11/guess-who-said-this.html for a slightly different perspective on the situation. Also, FYI: Washington Federation of Teachers (www.wftaft.org) is also against the 7E7 deal... NOT to be confused with the WEA!
7 posted on 11/28/2004 10:15:01 AM PST by JosefK (Marsha Richards for State Representative in 2006! DON'T DRAIN THE MARSH, DRAFT THE MARSH!)
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To: JosefK

Sorry, it's www.wftaft.COM

Truly sorry.


8 posted on 11/28/2004 10:16:50 AM PST by JosefK (Marsha Richards for State Representative in 2006! DON'T DRAIN THE MARSH, DRAFT THE MARSH!)
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To: truth49
"We can't continue to cut taxes to get a company to stay here."

Umm, why not?

9 posted on 11/28/2004 10:20:47 AM PST by VeniVidiVici (Got Wood?)
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To: truth49

Do you work for Alcoa or Airbus


10 posted on 11/28/2004 10:25:07 AM PST by Modok
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To: VeniVidiVici

Because you have to make investments in public infrastructure. AG-elect McKenna has supported limiting taxes, however.


11 posted on 11/28/2004 8:40:14 PM PST by JosefK
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To: Modok
No (though interesting question since more Airbus employees will actually be working in the US than those "Boeing" employees actually manufacturing the 7E7 (most of the manufacturing will occur out of country). I don't support corporate welfare in any form. Tax rates should be uniformly LOW for all employers. Government should not pick the economy's winners and losers. It should get out of the way of the free market.
12 posted on 11/29/2004 8:26:08 AM PST by truth49
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To: truth49

Seems like "Beat Up On Boeing" is the popular thing to do right now. Guess these politicians would be happy to see the company go bankrupt and take the U.S. economy right along with it.


13 posted on 11/29/2004 8:28:32 AM PST by COEXERJ145
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To: truth49

The only problem is that Airbus is being heavily subsidized by the Europeans. Would you like to have the aerospace industries controled by the Europeans?


14 posted on 11/29/2004 8:37:37 AM PST by Modok (ascsram)
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To: COEXERJ145

There is a very big agenda behind the beat up on Boeing. That agenda is being driven by the EU. Wonder why?


15 posted on 11/29/2004 8:38:39 AM PST by Modok (ascsram)
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To: Modok
That agenda is being driven by the EU. Wonder why?

Its obvious as to why. The EU wants Airbus to be the sole manufacturer of large commercial jetliners. They've publicly stated this on multiple occasions. Not only would this allow them to earn billions of dollars since they'd be a monopoly but the demise of Boeing would destroy the U.S. economy and leave the EU as an economic superpower.

16 posted on 11/29/2004 8:42:38 AM PST by COEXERJ145
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To: COEXERJ145
So is the answer to try to "out subsidize" the EU or to withdrawal from the WTO and pass legislation to penalize European trade practices? Maybe requiring repayment of the Marshall plan would be a good start.
17 posted on 11/29/2004 8:45:45 AM PST by truth49
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To: truth49

Sorry, last post was to Modok.


18 posted on 11/29/2004 8:47:08 AM PST by truth49
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To: COEXERJ145

You think Airbus would work through public interest advocacy groups in Washington to push for investigations of Boeing and try to do as much damage to Boeing as possible? Would that be hard for Airbus to do that kind of public relations activity?


19 posted on 11/29/2004 8:47:45 AM PST by Modok (ascsram)
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To: truth49

What do you think of the actions that the Bush administration has taken on this case?


20 posted on 11/29/2004 8:51:29 AM PST by Modok (ascsram)
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