The Boeing Company is one of America’s leading technology companies and exporter of manufactured goods. As such, our company’s success is tied closely to the prosperity and security of the United States.
Desipte the passing of the 2012 American Taxpayer Relief Act (ATRA), the situation as it is today is not optimal, and a meaningful, long-term, balanced solution to address the myriad of fiscal challenges has yet to be reached. All the threats caused by sequestration remain very much in play. While the impact has been somewhat reduced for FY2013, there is still the threat of dramatic slashes in federal budgets not only in FY2013, but every year through FY2021.
Although interest rates are historically low, they will not be that way forever. As Secretary Panetta has said, “While we appreciate the fact that both parties came together to delay sequester, the unfortunate thing is that sequester itself, and the sequester threat, was not removed.”
Collectively, these budget cuts and tax increases will constitute a body blow to an American economy still struggling to recover from the most severe financial crisis since the Great Depression. The Congressional Budget Office (CBO) projects that with the expiration of tax cuts and imposition of sequestration the U.S. economy would begin to contract next year and tip back into recession, hence the characterization of the combined effects as a “fiscal cliff.” Nearly every community, income group, and industry will be affected. And none more so than the aerospace and defense industry that makes space exploration, commercial and defense satellite capabilities, and other innovations possible, keeps our skies safe for all forms of flight, and provides a decisive technological edge to the U.S. military.
- CBO Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022
- National Association Manufacturers (NAM) study on the impact of defense cuts on the economy
- Aerospace Industries Association (AIA) study on the impact of budget sequestration on the economy
- AIA’s study on the impact of budget sequestration on civil aviation and the Federal Aviation Administration