Boeing in trouble over tax breaks
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.