AIA Committed to Comprehensive Tax Reform That Unlocks the American Aerospace and Defense Industry’s Full Potential
With Congress taking steps to reform the United States’ tax code, the Aerospace Industries Association and its more than 340 member companies are committed to redoubling their support for a sensible and comprehensive tax code overhaul that stimulates job creation, makes the U.S. more attractive for business investment, and levels the international playing field for American-made exports.
Discussions about tax reform have evolved considerably, with some legislators focused on the desire to offset lost revenues from cuts to both corporate and individual income tax rates through additional revenue raising measures. AIA recognizes that there is more than one option for achieving revenue neutrality in tax reform, and will continue to work closely with Congress to foster consideration of those options.
AIA’s tax reform principles seek to maximize the vibrancy of the aerospace and defense industry’s workforce and contribution to United States economic strength. These principles include creating a globally-competitive corporate tax rate that enhances the United States’ attractiveness as a focal point for business investment; reinforcing the United States’ primacy as “trading partner of choice” by replacing the current worldwide tax base with a territorial tax system where U.S. companies owe tax only on domestic products; enabling companies to invest in core products and workforce by ensuring that revenue from tax changes is not diverted to pay for non-tax initiatives; and spurring export sales by allowing the repatriation of accrued overseas income if coupled to a territorial system moving forward. Underlying these principles, AIA seeks to work with the Administration and Congress to enact reforms in the most fiscally responsible way by putting all options on the table for Congress to choose from in offsetting rate cuts and by making permanent tax changes possible.
The Aerospace Industries Association and our 341 member companies will continue to work in close partnership with pro-tax reform organizations, including the Business Roundtable, National Association of Manufacturers, the U.S. Chamber of Commerce, and the American Made Coalition to support a tax code that enables business expansion and job growth, spurs innovation, and provides sufficient resources for the operations of government.
Speaking on AIA’s advocacy for tax reform, AIA President and CEO Dave Melcher said that, “for the aerospace and defense sector’s 2.4 million productive employees, tax reform presents an increase in investment in core programs and exports which result in high-skill, high-wage job creation. As members of an industry that contributes $90 billion to the United States’ positive trade balance equation, our companies will not let this singular opportunity pass without contributing to the solution. AIA looks forward to working with the Administration and Congress to advance comprehensive tax reform that unlocks the American aerospace and defense industry’s full potential.”