Three powerful Republican senators want to stop Boeing from taking a tax deduction for a pending $615 million settlement with the government over allegations of criminal misconduct. Boeing had agreed to pay the settlement to avoid charges stemming from improper hiring practices and its apparent theft of a rival’s propriety data. A deduction would save Boeing an estimated $200 million.
In a letter to Attorney General Alberto Gonzales, Sen. John McCain (R-AZ), Sen. Charles Grassley (R-IA), Chairman of the Senate Finance Committee, and Sen. John Warner (R-VA), Chairman of the Armed Services Committee said it would be "unacceptable" if Boeing was able to write off the costs of the settlement, "thereby leaving the American taxpayer to effectively subsidize its misconduct." A Boeing spokesman has said the tax status of the payment is still up in the air.
The letter warns that "hearings may be warranted" if the final settlement is executed before the tax issue is resolved.
Click here to read Senators’ letter to the Attorney General.