Senator Mike Hewitt says South Carolina is celebrating while Washington sleeps

September 25, 2009

Today Senate Minority Leader Mike Hewitt, R-Walla Walla, issued this statement on the growing danger of losing Boeing’s second line to South Carolina. The move was touted today in a Charleston newspaper as highly likely, quoting one Charleston legislator who said they’ve offered Boeing “a deal too good to pass up.”

“It’s tragic that Washington appears to be on the verge of losing billions in future business and countless jobs to South Carolina and yet we refuse to address two cost-of-doing-business issues critical to Boeing: unemployment insurance and workers’ compensation taxes.  

“Perversely, Washington insists on making it harder to do business here. Just this week, the Department of Labor and Industries proposed a $117 million workers’ compensation tax increase for next year – despite a 50 percent drop in claims since 1990. Although Boeing is self-insured, the Supplemental Pension Fund rate that Boeing pays will increase by 16 percent under the L&I proposed tax increase. And the small businesses that supply Boeing will be hit especially hard.

Plus, we have all but repealed the 2003 unemployment insurance reforms that we passed to get the 787 assembly line here in the first place.  

“South Carolina is celebrating. To quote the Charleston legislator: ‘We're in for good times. All we need is for Boeing to pull the trigger for building the rest of the aircraft here. We will quickly become a leader in the aerospace industry virtually overnight if that occurs.’ 

“Washington is going in the wrong direction! We’re asleep at the wheel, and I’m afraid that our car might just veer off the road and plunge off a cliff.  

“Unless this Legislature wakes up and addresses these problems that make Washington less competitive, we will continue to lose jobs from other companies, not just Boeing – which may decide any day now to take advantage of friendlier business climates elsewhere. 

For more information contact Senate Republican Caucus Communications Director Rebecca Japhet at (360) 786-7516 or japhet.rebecca@leg.wa.gov.