Missouri Dodges A Bullet: Bombardier Seeks Billion Dollar Rescue in Canada
Back in 2008, the Show-Me Institute was staunchly opposed to a plan that could have given aircraft manufacturer Bombardier nearly $1 billion in Missouri tax credits to attract the Canadian company to the state. As Joe Haslag, the Institute’s chief economist, said after the company instead took advantage of tax incentives abroad, Bombardier’s decision to go elsewhere wasn’t necessarily a bad thing at all. For one, tax money given to Bombardier couldn’t have been spent on other state priorities. For another, giving just one company a huge tax advantage was a highly risky gamble for the state, given the thousands of other businesses that otherwise could have had their taxes cut and could have made their own, potentially higher-yielding investments.
Which brings us to 2015: Bombardier, back in Canada, now needs a bailout.