We retired Tax Justice Blog in April 2017. For new content on issues related to tax justice, go to www.justtaxesblog.org
When Washington State lawmakers approved a record $8.7 billion in tax breaks for Boeing and other aerospace companies last month, many observers hoped that the unprecedented scale of the new tax cuts—which will last through 2040—might open policymakers’ eyes to the folly of the “race to the bottom” that will eventually result from ever-increasing corporate giveaways. But Missouri Governor Jay Nixon’s eyes remain firmly shut. Nixon has called a special legislative session to urge the Missouri legislature to approve tax cuts totaling $1.7 billion , also geared toward Boeing and other aerospace companies.
Nixon’s professed hope is that the tax breaks will entice Boeing to produce their 777X commercial aircraft in Missouri. But Boeing’s own taxpaying behavior suggests that for some, the “race to the bottom” may already be over: a recent CTJ report found that over the past decade Boeing managed to avoid paying even a dime of state income taxes nationwide on $35 billion in pretax U.S. profits.