Tax

Bombardier Gets Their Money

Just as I suspected, the Bombardier Benefit Act of 2008 sailed through the Senate. In order to win Senate passage, the subsidy was lowered to $320 million from $880 million. Also, the Senate made some changes to “guarantee” that the state gets the money back with interest.

But it gets better. See, I thought that Bombardier actually had to build the plant. Oh, no. The City of Kansas City is building the plant and Bombardier is agreeing to lease it.  That means that Bombardier won’t have to pay property taxes on the $300 million facility either. Sweet.

Oh, and what happens if the company goes bankrupt or decides to pull out of Kansas City? Well, nothing apparently. Except that Kansas City will be left with a large empty factory and a pile of debt to pay on it. I’m sure that a facility that builds airplanes has nothing to worry about though.

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© 2008 Kirk Walsh.