AIA supports House Tax Bill
November 3, 2017
Earlier this week, House Ways and Means Committee Chairman Kevin Brady introduced the “Tax Cuts and Jobs Act” (H. R. 1). This bill is an important first step in the legislative process, with the Ways and Means Committee markup beginning on Monday and release of the Senate bill expected on Wednesday. We are pleased to see that the House bill would provide positive and significant tax relief to a wide range of American businesses. In a number of ways, the bill would benefit the U. S. aerospace industry, along the entire spectrum from our larger companies to smaller ones and entrepreneurs throughout the supply chain. We believe Congress and the White House cannot waste this opportunity to jump start the manufacturing sector by passing permanent and comprehensive business tax reform.
Throughout this year, the Aerospace Industries Association has urged Congress to pass tax reforms that enable broad U. S. economic expansion and job growth while specifically helping the manufacturing sector improve our global competitiveness. Aerospace and defense manufacturers employ 2.4 million U. S. workers – 13 percent of America’s manufacturing workforce – and generated a record trade surplus of $90 billion last year. Over the past five years, however, the industry’s employment topline has grown by an annualized rate of only 0.05%. Tax reform is the most direct path to sustaining these existing jobs while firmly addressing the anemic growth rate.
The tax reforms we are communicating to Congress include a more competitive corporate tax rate, retention of the permanent R&D tax credit, movement toward a territorial tax system and the repatriation of accrued overseas income. The House bill introduced yesterday goes a long way toward meeting those objectives, including a reduction in the top corporate tax rate from 35 percent to 20 percent.
This bill represents the best opportunity for comprehensive tax reform in over thirty years. AIA is today urging our member companies and their employees to reach out to Congress in support of H. R. 1 and similar pro-business legislation in the Senate. The next few weeks will be critical in this debate, and America’s manufacturers are watching.