'Clawback' could make a comeback in aerospace tax break debate
OLYMPIA — Aerospace companies that save bundles of dollars through tax breaks — billions in the case of the Boeing Co. — rallied Thursday against renewed calls for knitting a firm’s receipt of those perks with the number of people they employ.
Executives of Boeing and several firms voiced concerns at a public hearing on a report examining whether the tax breaks enacted in 2003 and extended in 2013 were doing what lawmakers wanted them to do — namely cut business costs, preserve the industry, ensure good-paying jobs, and “maintain and grow” the aerospace workforce.
That analysis by the state legislative auditor found costs are lower and workers are earning good wages, but there is no clear link between the tax breaks and job creation. There are more aerospace workers in Washington now than in 2003, but fewer than in 2013, it found.
Moreover, the auditor couldn’t find clear evidence that the tax break extension influenced Boeing’s decision to build the 777X in Everett.
The auditor is recommending lawmakers amend existing law to add another goal, like a baseline level of employment for companies receiving tax breaks. That would make it easier in future audits to figure out if they are paying off.
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