In a proud attempt to bribe the Boeing Company to stay in Washington State to build the new 7E7 jetliner , Gov. Locke has offered Boeing a one-off multi-billion-dollar tax preference. The "incentives package" includes such centrally-planned- economic-nightmare subsidies as "Business and Occupation Tax rate reduction for the aerospace industry" and "Sales tax exemption for computer hardware and software used in design and engineering of airplanes and their components". Locke's justification for this tax favoritism was that ""If they decide not to do the 7E7 here, we stand to lose much more".
I'm all in favor of giving Boeing tax relief. But I'd like to see that tax relief apply to everybody. And instead of a special purpose sales tax exemption on computers to only one industry, why not have a sales tax exemption on all tools of trade to all industries?
The P-I reports the story as if a massive tax preference for only one industry is an uncontroversial idea. The Seattle Times has a more rounded picture
Business lobbyists and some Republican lawmakers said it's unfair to give Boeing such a deep tax cut when others are being told the state can't afford tax breaks.Indeed. I'm going to write to the governor and my legislators and ask for special treatment too. I'll let you know how far I get. Posted by Stefan Sharkansky at June 10, 2003 02:42 PM