Hold the 'Bus part deux

Now that they have officially avoided today's deadline for an agreement on the U.S.-EU dispute over subsidies for aircraft manufacturers, the Europeans are going on the offensive. As in, their demands this time around are offensively ridiculous. Sure, the EU says, Boeing may not receive the kind of "launch aid" Airbus soaks up from its governmental sponsors. But Boeing pays lower taxes! And, says Europe's trade representative, this has got to stop before the EU will negotiate.

Sadly, this is not as creative an argument as it may at first appear. Tax-happy western European countries have a tradition of whining about the economic success of their lower-taxing neighbors. Ireland's famously low corporate tax rates (and its concomitant famous growth rates) are a perennial sore spot, which explains the nagging calls for "harmonization of economic policies" within the EU. And the entrance of eastern European countries that also have more favorable economic policies has only made the problem worse.

So once and for all: Yes, Europe, there is a difference between stimulative tax breaks and subsidies. If you have your knickers all in a twist about low taxes in Washington State, try cutting your own taxes. Even if doing so makes it harder for you to afford your subsidies to Airbus. Trust us -- low taxes have done wonders in America and Ireland.