Tax reform is the 'single most important thing' to grow economy, jobs: Boeing CEO Dennis Muilenburg
President Donald Trump's pro-business agenda has been welcome news for U.S. manufacturing icons like Boeing.
The airplane manufacturing giant inked a $13.8 billion deal with Singapore Airlines recently that would create 70,000 jobs in the United States.
House Republicans have adhered to the Trump administration’s promise, proposing a reduction in the corporate tax rate to 20% from the current 35% rate, which will increase the average U.S. household income and grow the economy.
“I know things like a 20% corporate tax rate will allow us to be more competitive in the global marketplace. That's what our competitors enjoy today around the world. And when we're more competitive, we win in the marketplace, and that allows us to invest and grow for the future,” Boeing CEO Dennis Muilenburg said in an exclusive interview with FOX Business’ Maria Bartiromo.
The Boeing CEO said tax reform is detrimental to generating job growth and energizing economy.
“I would say tax reform is the single most important thing we can do to generate jobs growth in the U.S., the single most important thing we can do to energize economic growth,” Muilenburg said.
Boeing, the world’s largest airplane manufacturer, is a big part of the aerospace trade surplus sector with more than 13,000 medium and small businesses and 1.5 million manufacturing jobs as part of that supply chain.
“[Corporate tax reform] certainly benefits big companies like Boeing, but even more importantly, it benefits our supply chain, those medium and small businesses, where a lot of the job generation is happening. And corporate tax reform will allow us to invest for the future, make additional capital investments, and continue to grow and win in the marketplace,” Muilenburg said on FOX Business’ “Wall Street Week.”
The strong demand for commercial airlines has allowed Boeing (NYSE:BA) to have a solid cash flow and a strong operating performance that has pushed the stock to lead the Dow, up over 80% since the election.
“We have a tremendous backlog right now, almost $500 billion of backlog in our company across commercial and defense. So translating that backlog into top line growth over the next many years we think is a big opportunity.”
Muilenburg said the long--term sustained cash growth business and year-over-year cash growth will allow the world’s largest airplane manufacturing to invest in innovation.
“Boeing has won in the marketplace for 100 years because of innovation, and we need to continue to invest in innovation for the future. And our cash generation strength is what allows us to do that,” he said.