10/9/10 – US Aerospace Industries Association call for stimulous package
10 September 2010
The fact that the World Economic Forum has ranked the United States fourth in its latest its Global Competitiveness Report, has caused consternation in the Aerospace Industries Association. Only two years ago, the United States ranked first. "This disturbing news makes it clear that the administration and the Congress must take immediate action," said AIA President and CEO Marion C. Blakey. "We cannot risk falling further behind in today’s competitive global economy."
Among the top four problem factors identified by the World Economic Forum for doing business in the United States are tax rates and regulations and inefficient government bureaucracy. To spur the US’s competitiveness the AIA is proposing a four-step programmme which it has set out as:
1) Making permanent and simplifying the Research and Development Tax Credit;
2) Reducing corporate tax rates;
3) Reinstating the bonus depreciation for businesses making capital investments; and
4) Streamlining government operations and reducing overhead as called for by Secretary Gates and recommendations from the Defense Business Board.
Next week during National Aerospace Week, supplier executives from the aerospace and defense industry will be meeting with their representatives to stress the importance of making these reforms to make companies, especially small businesses, more competitive.