Rising expense of fighter plane is in spotlight, but reining in military programs is a tall order
The Pentagon’s costliest programs to buy more than 2,400 planes to replace aging combat jets have long been viewed by experts and lawmakers as the most egregious example of cost overruns.
Deal for Carrier to Keep U.S. Plant Open May Hinge on Tax Overhaul
Talks include the conglomerate’s plans to shift more than 2,000 jobs from Indiana to Mexico
The incoming president’s goal is to show that he can keep some of his boldest campaign promises, and the CEO needs to keep peace with the federal government, a critical customer for products like its jet fighter engines. Military sales account for roughly 10% of the company’s $56 billion annual total, the company says.
United Technologies, like other globalized U.S. companies, also has large reserves of cash overseas—profits that corporations are waiting to repatriate to the U.S. until Congress cuts the level of tax they would pay. The company reported that 85% of its total cash, or more than $6 billion, was overseas, as of the end of 2015.
.. Democratic Sen. Bernie Sanders said Saturday that Mr. Trump must make it clear that if United Technologies “wants to receive another defense contract from the taxpayers of this country, it must not move these plants to Mexico.”
.. The company is the sole provider of jet engines for the F-35 Joint Strike Fighter.