The Aerospace Industries Association (AIA) is leaning on Congress to alter the caps attached to the budget control act (BCA) and to enact sweeping tax reform.
Calling the two items significant to the industry’s long-term health, the AIA contends that current BCA caps are holding back the industry through limiting defense spending. They are, as a result, cheering the passage of a budget resolution by both the House and Senate this month, and intend to push for greater budget negotiations and tax reform now that this effort has moved forward.
“AIA’s Executive Committee made a firm commitment to achieving growth opportunities for our industry through substantial relief from BCA budget caps and comprehensive tax reform,” David F. Melcher, AIA President and CEO, said. “AIA’s advocacy for U.S. government policies that make our industry more competitive have been a critical point of emphasis with the Trump Administration and Congress. They are central to unlocking our industry’s great potential to grow exports and create high-skill, high-wage jobs.”
The current resolution keeps existing BCA caps in place but grants new authority to the Budget Chairman to change the amounts allocated for defense spending if other legislation is agreed upon that calls for higher spending levels. It also opens the door to that sought out reconciliation, as it would allow tax changes enacted through separate tax reform legislation to increase the deficit by a maximum of $1.5 trillion between 2018 and 2027.