The State of Washington political leaders know well that Boeing is not bluffing when the company says it will take jobs overseas unless a desired outcome is achieved. Some hard feelings still linger almost two years after Boeing pushed the Legislature into $8.7 billion in tax breaks, reportedly the largest state tax subsidy granted to a private company in American history. Lawmakers overwhelming obliged, though many were not happy about it and the jobs stayed here. Boeing, now based in Chicago, maintains an extensive manufacturing and engineering presence in Western Washington, south of Seattle.
The company again has an issue with a legislative body, and this time it is Congress. A handful of tea-party conservatives have blocked reauthorization of the Export-Import Bank, of which Boeing is the largest customer, claiming the bank engages in corporate welfare. The authorization expired on June 30, and we have noted before that its opponent arguments have no merit. The bank offers loans that help U.S. companies compete abroad against overseas corporations that are subsidized by their governments. It is this country official export credit agency, and as such it helps American exporters or foreign buyers that otherwise can not get financing. It also works with private banks to guarantee loans. The bank helps offset similar programs in other countries, many of which offer far more generous assistance than does this bank. The congressional action, or rather inaction, has left at least one Boeing deal in the lurch, according to a Seattle Times story last week.
An unhappy Boeing Chairman Jim McNerney said the company is actively considering now moving key pieces of our company to other countries that operate export agencies. In other words, congressional obstinacy could well send jobs from this state overseas. The Boeing name is synonymous with the bank, but it is far from the only customer in Washington. And it costs U.S. taxpayers ZERO.
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