New Policy Brief: About That Mythical $8.7 Billion Tax Break . . .

We have posted a new policy brief regarding aerospace tax incentives: About That Mythical $8.7 Billion Tax Break . . .

Briefly:

A competitive tax policy is not a “subsidy” that costs the state money. It is, rather, a pragmatic response to the marketplace, including the global competition for major industrial projects. Tax policies adopted in 2003 were essential for securing the 787. Extending those policies in 2013 helped to win the 777X.

One thought on “New Policy Brief: About That Mythical $8.7 Billion Tax Break . . .

  1. “… a pragmatic response to the marketplace” is one way to say it. Another might be, “the decision by one stakeholder with overwhelming market power to apply its leverage against weaker stakeholders to extract gains.” Boeing decided to pay less in state taxes. They made an offer to any state that wanted to provide state services – education, transportation, public health, worker training, among others, at below the costs paid by other employers.

    It’s all about asymmetric bargaining power. This was a market failure by any measure.

Comments are closed.