RENTON, Wash. -- A bill that would threaten to limit massive tax breaks for Boeing is getting bi-partisan support in Olympia.
House Bill 2638 would tie state tax incentives to jobs. Sen. June Robinson, D-Everett, says the intent is to grow the aerospace industry and not make it easy for Boeing to send jobs out of state.
Since Governor Jay Inslee and Boeing made a deal in 2013 to build the new 777x wing at a new assembly line in Everett in exchange for large state tax breaks, some estimate the company has sent around 4,000 jobs to other states.
"I think the trust with Boeing has been eroding to be honest," says Robinson.
According to language in the bill, Boeing employs 80,848 workers in Washington state. If Boeing cuts between 4,000-4,999 jobs set as a 'baseline' in the bill, the company would have to forfeit some of its tax breaks. If more than 5,000 jobs are sent out of state, Boeing would lose all of its tax breaks if the new bill becomes law.
"If we don't set parameters to maintain and grow the industry, it won't do that," said Jon Holden, President of Machinists Union Dist. 751.
Boeing's V.P. of State and Local and Global Corporate Citizenship Bill McSherry testified against the bill in Olympia saying Boeing is creating jobs in Washington state and improving the lives of its workers.
"When the inevitable downturn comes, this legislation would prevent the company from expanding and contracting to meet the world's changing needs," he said.
A similar bill was introduced in the legislature last session but did not make it out of committee.
