Claiming that a set of changes Republicans proposed last year - including a big cut in the corporate tax rate - will make them more competitive globally and help create U.S. jobs, Boeing Co and about 90 other aerospace companies are urging U.S. Congress to overhaul the U.S. tax system.
According to the Aerospace Industries Association (AIA), a letter to Republican and Democratic leaders in the U.S. House and Senate that was dated Friday had been signed, among other business leaders, by Boeing Chief Executive Dennis Muilenburg.
According to several people familiar with the matter, congressional Republicans first plan to address the issue of healthcare and then intend to prepare and develop measures to alter the U.S. tax system. It is amidst such planning that the support comes from leading business leaders of the country.
"We urge you to enact legislation that modernizes our tax system, allows America's businesses to better compete in the global marketplace and encourages job creation and innovation in the United States," said the AIA letter, also signed by the group's CEO, David Melcher.
Means Committee Chairman Kevin Brady, a Texas Republican and the White House released a "blueprint" for tax reforms in June and the changes that are being suggested are based on that report.
Introduction of a border adjustment tax system that would tax imports into the United States but not tax revenue generated by exports out of the country, permit immediate deductions for capital investment and cutting of the U.S. corporate tax rate to 20 percent from 35 percent are some of the changes that are among the key selements that have been proposed by Brady.
Aerospace companies are facing some uncertainty under the administration of Donald Trump and the push on taxes by these companies comes amidst such an environment.
Pressure to lower costs on planes bought by the U.S. government was exerted publicly on Boeing and Lockheed Martin Corp by the new president as he lost no time to do so after assuming office. And if Trump's aggressive trade policies cause friction with other countries, aerospace companies also stand to suffer as they source parts and sell many of their products overseas.
But including an export-boosting border adjustment tax, Trump has voiced support for the tax reform plan at the same time.
The cost of imports to U.S. manufacturers would be offset by giving them more purchasing power as the drafters of the plan say a tax on imports would increase the value of the dollar. However U.S. goods would be made more expensive for foreign buyers due to a stronger dollar.
Raytheon Co CEO and AIA vice chairman Thomas Kennedy joined Boeing's Muilenburg, who is also the acting AIA chairman, in signing the letter.
Honeywell International Inc, Rockwell Collins Inc, Rolls-Royce Holdings Plc, General Dynamics Corp, Harris Corp, International Business Machines Corp, L3 Technologies Inc., Lockheed Martin, General Electric Co and Northrop Grumman Corp are among the other companies involved in aerospace manufacturing who also signed the letter.
(Source:www.reuters.com)
According to the Aerospace Industries Association (AIA), a letter to Republican and Democratic leaders in the U.S. House and Senate that was dated Friday had been signed, among other business leaders, by Boeing Chief Executive Dennis Muilenburg.
According to several people familiar with the matter, congressional Republicans first plan to address the issue of healthcare and then intend to prepare and develop measures to alter the U.S. tax system. It is amidst such planning that the support comes from leading business leaders of the country.
"We urge you to enact legislation that modernizes our tax system, allows America's businesses to better compete in the global marketplace and encourages job creation and innovation in the United States," said the AIA letter, also signed by the group's CEO, David Melcher.
Means Committee Chairman Kevin Brady, a Texas Republican and the White House released a "blueprint" for tax reforms in June and the changes that are being suggested are based on that report.
Introduction of a border adjustment tax system that would tax imports into the United States but not tax revenue generated by exports out of the country, permit immediate deductions for capital investment and cutting of the U.S. corporate tax rate to 20 percent from 35 percent are some of the changes that are among the key selements that have been proposed by Brady.
Aerospace companies are facing some uncertainty under the administration of Donald Trump and the push on taxes by these companies comes amidst such an environment.
Pressure to lower costs on planes bought by the U.S. government was exerted publicly on Boeing and Lockheed Martin Corp by the new president as he lost no time to do so after assuming office. And if Trump's aggressive trade policies cause friction with other countries, aerospace companies also stand to suffer as they source parts and sell many of their products overseas.
But including an export-boosting border adjustment tax, Trump has voiced support for the tax reform plan at the same time.
The cost of imports to U.S. manufacturers would be offset by giving them more purchasing power as the drafters of the plan say a tax on imports would increase the value of the dollar. However U.S. goods would be made more expensive for foreign buyers due to a stronger dollar.
Raytheon Co CEO and AIA vice chairman Thomas Kennedy joined Boeing's Muilenburg, who is also the acting AIA chairman, in signing the letter.
Honeywell International Inc, Rockwell Collins Inc, Rolls-Royce Holdings Plc, General Dynamics Corp, Harris Corp, International Business Machines Corp, L3 Technologies Inc., Lockheed Martin, General Electric Co and Northrop Grumman Corp are among the other companies involved in aerospace manufacturing who also signed the letter.
(Source:www.reuters.com)