Boe­ing in trou­ble over tax breaks

Daily Freeman (Kingston, NY) - - BUSINESS -

Shares in Boe­ing were lit­tle changed Mon­day as in­vestors shrugged off a rul­ing by the World Trade Or­ga­ni­za­tion that the jet plane maker re­ceived ma­jor il­le­gal tax breaks from Wash­ing­ton State. The Geneva, Switzer­land based WTO found that Wash­ing­ton state’s promised sup­port to Boe­ing from 2024 to 2040 amounted to “pro­hib­ited” sub­si­dies. The sup­port was of­fered on con­di­tion that Boe­ing keeps pro­duc­tion of wings for its wide-bod­ied 777X jet in the state, ef­fec­tively ex­clud­ing for­eign com­pe­ti­tion. Boe­ing has ex­ten­sive plants around Seat­tle.

Boe­ing and Euro­pean ri­val Air­bus have waged a years-long bat­tle over the is­sue of sub­si­dies and tax breaks each claims the other re­ceives from its home govern­ment.

Euro­pean Union of­fi­cials said the trade body had found $5.7 bil­lion in il­le­gal sub­si­dies. Boe­ing called that fig­ure ex­ces­sive and said only $50 mil­lion a year in fu­ture in­cen­tives were found im­per­mis­si­ble.

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