Boeing CEO calls Air Force One deal a risk it ‘probably shouldn’t have taken'

theverge.com

2 pointslaktak4 comments

> But here’s a question — if Boeing is taking heavy losses on the project, and writes them off on its taxes, is the general public really any better for the supposed savings?

Yes, it is much better than having the American people paying the full amount rather than just whatever tax deductible Boeing gets.

No journalist can be that naive.

I may be missing something (I don't understand tax stuff well), but if they write off $X losses, and pay $X less taxes... doesn't that mean the American people are paying the same either way in the end?

The US corporate tax rate is 21%. So if they write off $X, the government is returning .21X to them.

Thus the government is getting it below their cost. Not by the full $X, but by .79X.

It's never that simple with taxes, of course, but that's the gist of if it. A writeoff isn't the same as free.

You missed an important point, which is that Trump negotiated the deal. Therefore it's obviously the worst possible outcome out of all the outcomes that could have occurred.

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