Gov. Jay Inslee just vetoed a new tax break for more than 25,000 manufacturing businesses in Washington state.
Remember that special tax break Boeing got to make sure they'd build the new 777 airplane in Washington state? This bill would have given every manufacturing business statewide the same tax break.
Inslee noted that it would have cost: $64 million over four years.
At the same time, homeowners in many urban areas are getting big property tax increases to pay for education.
“You just can't defend this one and have people feel that it was fair,” the governor said.
“This was a bad provision. It was grossly unfair to taxpayers. It was done in the middle of the night. It had zero accountability. There's not a single job will be produced that they can prove will be produced from this.”
But Republicans feel the tax break was part of the budget deal that averted a state government shutdown.
Asked for his response to Republicans who may feel double-crossed, Inslee said, “They're wrong and I can't control their tender feelings but I can control what the state constitution says. And it says the governor maintains, including in this bill, the right to veto bad provisions.”
“I would say that trust it tentative right now. A good word would be tenuous,” said Republican Rep. Andrew Barkis, of Lacey.
Barkis and business leaders say the tax break is needed to boost the economy in rural areas of the state.
“Some of these manufacturers are still in the recession. The most rural parts of the state have double-digit unemployment, very few job starts. This would have been an opportunity for them to make critical investments,” said Kristofer Johnson, president of the Association of Washington Business.
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