An aerospace and defense trade group has asked Congress to devise a tax reform plan that would not contribute to budget deficit in an effort to prevent potential cuts to defense spending in the long term due to high shortfall, Defense News reported Saturday.
Doc Syers, vice president for legislative affairs at the Aerospace Industries Association, said AIA wants lawmakers to adopt a “revenue-neutral tax plan†as much as possible.
“We wanted all options to be on the table for Congress to offset the rate cuts and make tax cuts permanent,†Syers said Thursday.
“It’s up to the folks who really know all the credits and loopholes and deductions to balance that load and find the best possible situation — and that’s where we find ourselves at the moment.â€
AIA also calls for Congress to implement a tax overhaul plan that would replace the worldwide tax system with a structure in which U.S. companies owe tax on domestic profits only.
Companies “want the certainty that comes with permanent tax changes over a decade that allow them to make basic business decisions on investments in [research and development], on whether to modernize plants, whether to do hires and which technologies to explore,†Syers added.
AIA represents defense contractors such as Lockheed Martin, Raytheon, Boeing, Northrop Grumman and General Dynamics.
The House Ways and Means Committee is expected to introduce a tax measure over the next two weeks, the report added.
The trade group’s call came a week after the Senate passed its fiscal 2018 budget resolution that would authorize a tax reform plan.