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Boeing asks lawmakers to suspend preferential tax rate

OLYMPIA, Wash. (AP) — Washington state lawmakers have introduced bills, at The Boeing Co.’s request, to suspend the aerospace giant’s preferential business and occupation tax rate unless the U.S. and European Union reach an agreement on their long-running international trade dispute that would allow the lower tax rate. Under the legislation, starting on April 1, the company will no longer receive the 40% tax break that the Legislature adopted for the aerospace industry. Last year, the World Trade Organization body ruled Boeing received an illegal U.S. tax break from Washington state that damaged sales by European archrival Airbus. But the ruling was limited and the decision found no grounds upon which the European bloc could seek damages, except for the Washington state tax program.

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