Sunday, June 05, 2005


There was much discussion about Boeing and taxes on the "Wild Card" comments of yesterday, posted by Huckleberries on line.

I remember that during the Vietnam War, the Boeing 727 used the same engine as the F-4 multi-use fighter-bomber. At the height of the conflict a shortage occurred of these jet engines. I lived near the Renton plant, and observed 50 or more 727's lined up ready for delivery, but without engines.

Along came the year end, and Washington State inventory tax. To avoid this punishing penalty, Boeing had to ferry engines to Renton Boeing, install them, fly to Wichita, Kansas, remove the engines and fly them back. They did this over and over until the undelivered planes were all in Wichita.

The moral of this story is that if a state, in their greed, passes too many anti-business tax laws, they will loose the base which they are taxing.

Boeing also pays Business & Occupational tax, one of the most repressive taxes ever invented. With this tax, you pay on your gross revenue, regardless of whether you showed a profit. I once started a business in Washington where in the first year I showed an actual loss of $7000.00. I paid $1600.00 B & O tax anyway...

The state got their's first.

Boeing pays their own way and then some. It is very hard for me to see the point of view that all businesses are predatory, and all labor is perfect. Who hires these perfect workers, and who creates with their own capitol the where-with-all to hire?

No comments: