“This measure is important to protect our state’s economy,” House Democratic Majority Leader Pat Sullivan said by phone. “We don’t want tariffs levied by the European Union on the aerospace industry but also on other key industries in the state like wine and agricultural products.”
Washington state’s House of Representatives passed a measure on Wednesday night that removes a key tax break for Boeing Co (BA.N) and other aerospace firms, in a bid to head off possible European tariffs on U.S. goods and ease a transatlantic trade dispute over aircraft subsidies.
“This measure is important to protect our state’s economy,” House Democratic Majority Leader Pat Sullivan said by phone. “We don’t want tariffs levied by the European Union on the aerospace industry but also on other key industries in the state like wine and agricultural products.”
The measure passed 73-24 after winning approval on Tuesday in the Senate, a spokeswoman for House Democrats said.
However, late changes to the legislation means it must be put to another vote in the Senate before it can go to Washington state Governor Jay Inslee’s desk for signing.
The World Trade Organization has found that Boeing and Europe’s Airbus, the world’s two largest planemakers, received billions of dollars of unfair subsidies in cases dating back to 2004. The global trade body has faulted both sides for failing to comply fully with previous rulings, opening the door to a tariff war.
After years of debate, the focus of the European case against the United States involves a preferential state tax rate for aerospace introduced 16 years ago and renewed in 2013 to help attract production work for Boeing’s 777X.
The planned law changes would remove the 40% saving on Business and Occupation tax, which saved Boeing some $118 million in 2018 based on published jetliner revenues.
“We applaud the House for its commitment to full WTO compliance,” a Boeing spokesman said by email on Wednesday evening. “We support this legislation and look forward to the Senate concurrence vote.”
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
Severity: Warning
Message: count(): Parameter must be an array or an object that implements Countable
Filename: amp/news_details_amp.php
Line Number: 252
Backtrace:
File: /home/smartmarketnews/public_html/application/views/amp/news_details_amp.php
Line: 252
Function: _error_handler
File: /home/smartmarketnews/public_html/application/controllers/Amp_controller.php
Line: 41
Function: view
File: /home/smartmarketnews/public_html/index.php
Line: 315
Function: require_once
Smarter Decisions with Smart News
Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.
media@smartmarketnews.com | sales@smartmarketnews.com
Contact Us