Tag Archives: 787

News

Boeing builds new 787 plant in South Carolina to escape Washington Democrats

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You can’t pass regulations and taxes on corporations and then expect them to supply residents of your state with jobs. They will move to another state, and eventually, to another country.

Consider this commentary from Illiquid Assets. (H/T ECM)

Excerpt:

Two stories jumped out at me this morning the first was Boeing backing up its warning to Washington State politicians that they needed to reform the business environment and taxation model or lose future business investment and jobs. The response from the State was a whole new plan with localized Cap and Trade via the Western Climate Initiative, no reform of labor laws that allowed a protracted Union strike that shut down Boeing just as the world was starting its slip into recession combined with and other Green initiatives sure to drive up operating and labor costs. So Boeing has decided to open the second assembly line for the 787, not in Washington State, but in South Carolina and the politicians in Olympia claim they did not see it coming. South Carolina has a lower tax rate and a “Right to Work” law that means you do not have to join a union to work at a union business.

A right-to-work law means that the corporation does not have to be shackled by the demands of corrupt leftist unions, who are largely responsible for driving the American auto industry into the ground, in my opinion.

And now, consider this statement from Republican State Rep. Dan Christiansen. (H/T Sound Politics via iPandora)

Excerpt:

It’s extremely disappointing that Boeing has chosen South Carolina over Washington, but not surprising at all. Boeing has been very critical of our state’s difficult regulatory atmosphere. At the end of the day, it has to be able to compete successfully on an international scale, especially against Airbus. Instead of providing a level playing field, Washington has consistently put up barriers that make it difficult not only for Boeing to compete, but also for other employers throughout our state.

It’s been no secret that other states have been courting Boeing for years. Boeing has tried to make it work here. However, it has gotten to a point with unemployment insurance issues, regulatory burdens, business and occupation taxes, and recently, the governor being willing to consider tax increases, that Washington is no longer a place where Boeing can be competitive.

In South Carolina, it took only days for Boeing to get the permits it needs to move forward with the second 787 plant. In Washington, it would take years. That’s one of many examples in which our state has not been helpful and has stood in the way of the ability for Boeing to successfully compete here.

When Boeing decided several years ago to move its headquarters from Seattle to Chicago, many of my House Republican colleagues and I warned that unless the Legislature was willing to make reforms to improve the state’s business climate, we may see further departures. The governor and the majority party have been in denial about concerns of job providers and now our predictions are unfortunately coming true.

We must also remember this is not just about Boeing. Many other employers rely on Boeing and its workforce to support their companies. Hundreds of thousands of jobs in Washington are indirectly related to Boeing and are affected. I’ve been very critical not only about how our state has treated Boeing, but all employers in Washington. Even when the Legislature made concessions to Boeing in 2003 to secure the Dreamliner in our state, I also said we should extend those tax relief benefits to all businesses. Unfortunately, very little has been done in the Legislature to make Washington attractive for business.

Today’s announcement needs to be a wake-up call to our political leaders in Washington to create a more competitive business climate before we lose more employers to other states.

(Click through to the article for another view)

Eventually, maybe the American people will realize that they can’t attack “big corporations” without facing the consequences. Until then, Democrats will keep raising taxes and adding regulations that causes business to shift jobs to low-tax states, and eventually, overseas. Outsourcing is caused by Democrats who are hostile to businesses. Unemployment is caused by Democrats who are hostile to businesses.

News

How do Democrat policies stimulate the economy?

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Consider this Washington Times article to see how it works. (H/T Gateway Pundit)

Excerpt:

The Obama administration revealed last week that as much as $16.1 million from the stimulus program is going to save the San Francisco Bay Area habitat of, among other things, the endangered salt marsh harvest mouse.

That has revived Republican criticism that the pet project was an “invisible earmark” in the massive spending bill for Mrs. Pelosi, whose San Francisco district abuts the Bay, and epitomizes what Republicans say is the failure of stimulus spending so far to help an economy still shedding jobs.

“Lo and behold, the government has announced that the mouse is getting its money after all,” House Minority Leader John A. Boehner, Ohio Republican, said, standing beside a poster of the furry varmint. “Speaker Pelosi must be so proud.”

Mrs. Pelosi’s office was quick to dismiss the criticism.

My preferred stimulus was to spend under $400 billion and to temporarily suspend the employer portion of payroll taxes, so that American employees would go on sale. When people have jobs, then they are comfortable spending money. But Obama and Pelosi preferred to spend the money on mice. American workers or mice? Which one stimulates the economy?

Earlier this week I wrote about how well the first two stimulus bills worked, and how the Democrats would like to pass a third stimulus bill.

Raising taxes

Democrats also think that raising taxes on businesses and individuals will stimulate the economy. See, when the unemployment rate goes to 9.5%, and everyone has to pay more for electricity and gas, then Democrats believe that people will spend more.

Consider this article from Politico which lists some of the ideas they are considering. (H/T Michelle Malkin)

Excerpt:

— Broaden the 1.45-percent Medicare tax on earned income to “passive income,” which could include money from capital gains, rental properties and businesses that do not require direct participation. This could raise $100 billion.

— Levy a five-percent surtax on individuals who earn more than $500,000 and couples that make $1 million.

— Tax health benefits at a higher level than had been considered. Two scenarios are in play. Taxing plans worth more than $20,300 for a family and $8,300 for an individual could raise $240 billion. Increasing the cut-off to plans worth more than $25,000 would bring $90 billion.

— Capping the tax break on itemized deductions at 28 percent, as President Barack Obama had proposed, or freezing the top deduction rate at 35 percent when the Bush tax cuts expire in 2010. The first scenario would raise $168 billion, while the second would collect $90 billion.

— Issue tax credit bonds to pay for the proposed Medicaid expansion, raising $75 billion.

— Charge fees to pharmaceutical manufacturers, bringing in as much as $20 billion, and insurance providers, raising $75 billion.

– Raise taxes on sodas and sugary drinks. A 3-cent hike could pick up $30 billion, and a 10-cent hike could make $100 billion. This one already appears out of favor: Many senators have specifically ruled out the sugar tax, and a Senate Democratic source said it was the one option that was clearly not gaining traction with committee members.

Try to think about what effect this will have on the person who rents you your apartment, who supplies your employer with capital, or who pays your salary. Try to think about whether you will pay more or less for the goods and services you need when the people who provide them are attacked by the government. Try to think about what effect increased borrowing will have on the prosperity of your children.