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63-582: The Intermountain Manufacturing Company (IMCO) was a US aircraft manufacturer of the 1960s based in Afton, Wyoming that produced agricultural aircraft . IMCO was formed in 1962 to purchase the assets of the failed Call Aircraft Company , and the following year commenced new production of the CallAir A-9 . IMCO also developed an enlarged and refined version of the aircraft, designated

126-540: A stealth tax by critics. The implementation of tax policy has always been a complex business. For example, in pre-revolutionary colonial America , the argument " No taxation without representation " resulted from the tax policy of the British Crown, which taxed the settlers but offered no say in their government. A more recent American example is President George H. W. Bush 's famous tax policy quote, " Read my lips: no new taxes ." Efficient tax administration

189-410: A higher popularity of the tax policy and can even increase the revenue of the tax but the administrative cost of such a measure can outweigh said benefits, especially in the case of developing countries. The path to an improved tax systems in developing countries is a long and a demanding one, but it can be done. There are several aspects of the current tax systems that should be changed in order to make

252-409: A result of this, developing countries often use tax policies that are not very effective in terms of generating tax revenue , therefore not allocating the country the funds needed for improvement. As many people in developing countries are often paid wages based on the time they spend at work (volatile value), and many are paid in cash which lowers the government's ability to track such money-flows, it

315-422: A similar alliance with either Embraer with its E-jet E2 or Mitsubishi Heavy Industries and its MRJ . On 21 December, Boeing and Embraer confirmed to be discussing a potential combination with a transaction subject to Brazilian government regulators, the companies' boards and shareholders approvals. The weight of Airbus and Boeing could help E2 and CSeries sales but the 100-150 seats market seems slow. As

378-515: A special program to restore U.S. competitiveness across all U.S. industries, Project Socrates , contributed to employment growth as the U.S. aerospace industry captured 72 percent of world aerospace market. By 1999 U.S. share of the world market fell to 52 percent. In the European Union , aerospace companies such as Airbus , Safran , BAE Systems , Thales , Dassault , Saab AB , Terma A/S , Patria Plc and Leonardo are participants in

441-585: A trade liberalization program, reduced budgetary revenue would be an unwelcome by-product of the program." Despite the problems in keeping track of many economic activities in developing countries, naturally, various taxes are in effect in these countries. These generate revenue but there are certain limitations to these taxes which make them not as effective as they could be. The personal income tax in developing countries commonly have some rate of progressivity, meaning grouping individuals into various groups based on their income and then imposing different rates of

504-459: Is Japan ), strong transportation infrastructure (#5, #1 is Hong Kong ), a healthy economy (#10, #1 is China ), but high costs (#7, #1 is Denmark ) and average tax policy (#36, #1 is Qatar ). Following were Canada , Singapore , Switzerland and United Kingdom . Within the US, the most attractive was Washington state , due to the best Industry (#1), leading Infrastructure (#4, New Jersey

567-403: Is #1) and Economy (#4, Texas is #1), good labor (#9, Massachusetts is #1), average tax policy (#17, Alaska is #1) but is costly (#33, Montana is #1). Washington is tied to Boeing Commercial Airplanes , earning $ 10.3 billion, is home to 1,400 aerospace-related businesses, and has the highest aerospace jobs concentration. Following are Texas, Georgia , Arizona and Colorado . In the US,

630-485: Is associated with complicated tax systems. As the tax administration ecosystem evolves with the introduction of new analytical tools, digital information flows are increasing. Consequently, tax administration is operating in a way that increases incentives for compliant taxpayers. Modern taxation systems have the capacity to impose a heavy burden on taxpayers, and particularly on small businesses taxpayers . That burden typically consists of three elements. Firstly, there are

693-516: Is based. Several consolidations took place in the aerospace and defense industries over the last few decades. Airbus prominently illustrated the European airliner manufacturing consolidation in the late 1960s. Between 1988 and 2010, more than 5,452 mergers and acquisitions with a total known-value of US$ 579 billion were announced worldwide. In 1993, then United States Secretary of Defense Les Aspin and his deputy William J. Perry held

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756-403: Is difficult to keep record of any reliable data on income and wealth distribution in the country. This leads to a situation in which the policymakers are unable to create statistic or models that would allow them to propose changes to the current tax system (mainly income taxes in this case) in the country, that would improve the situation (mainly the efficiency vs. equity trade-off). Similarly to

819-471: Is done pursuant to type certificates and Defense Standards issued by a government body. This term has been largely subsumed by the more encompassing term: " aerospace industry". In 2015 the aircraft production was worth US$ 180.3 billion: 61% airliners , 14% business and general aviation , 12% military aircraft , 10% military rotary wing and 3% civil rotary wing; while their MRO was worth $ 135.1 Bn or $ 315.4 Bn combined. The global aerospace industry

882-500: Is economic efficiency; as advisor to the Stuart King of England Richard Petty had noted " The government does not want to kill the goose that lays the golden egg ". Paradigmatic efficient taxes are those that are either non-distortionary or lump sum. However, economists define distortion only according to the substitution effect , because anything that does not change relative prices is non-distortionary. One must also consider

945-443: Is equal to the concept of Pareto efficiency. Pareto efficiency means the situation of resource allocation where the concept of 'net' is dominant. In other word, basically we need to make someone worse in order to make others better under this efficiency. To seek for the efficiency, it is necessary to build the decentralized market mechanism. And to build that mechanism, tax system is often seen as an obstacle. Here, we need to think about

1008-478: Is key to encouraging businesses to become formally registered, thereby expanding the tax base and revenues. On the other hand, an unfair tax administration can harm the tax system and reduce the government legitimacy. In many developing countries, the failure to improve tax administration while introducing new tax systems has led to widespread tax evasion and lower tax revenues. It is important to keep tax rules clear and simple to encourage compliance, as high tax evasion

1071-422: Is no consensus about what should and should not be included under the definition of compliance costs, although one distinction usually made is between gross versus net compliance costs. The difference between the two is made up by any financial or managerial benefit derived by the taxpayer from tax compliance. However, there is a possibility to define some indisputable examples of costs, that are directly connected to

1134-409: Is not always the reality, as it is, for example, possible to reduce both types of costs through some sort of simplification of the tax system or an increase in compliance costs might occur as a result of administrative inefficiency. These types of costs together are called operating costs of taxation. When implementing some new parts of tax policy or reorganizing it, policymakers always have to consider

1197-485: Is significant debate among economists about the most effective ways to achieve this. Taxation is both a political and economic issue, with political leaders often using tax policy to advance their agendas through various tax reforms , such as changes to tax rates , definitions of taxable income , and the creation of new taxes. Specific groups, such as small business owners , farmers, and retired individuals , can often exert political pressure to reduce their share of

1260-688: Is the personal income tax. This is a tax with a large potential but it is one which currently only brings a small portion of money to the government's budget in many developing countries. A capital-gains and capital-transfers taxes implementations are another ways of improving the state of the tax systems in developing countries. There is a document made by the OECD designed in order to assist developing countries in transforming and improving their tax systems. In this document, OECD not only offers suggestions for improvement but also guarantees assistance with certain measures. "The OECD can support countries in improving

1323-481: Is the successor company to numerous British aircraft manufacturers which merged throughout the second half of the 20th century. Many of these mergers followed the 1957 Defence White Paper . Marconi Electronic Systems , a subsidiary of the General Electric Company plc , was acquired by British Aerospace for US$ 12.3 billion in 1999 merger, to form BAE Systems . In 2002, when Fairchild Dornier

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1386-510: The A320 . Tier 1 consolidation also affects engine manufacturers : GE Aerospace acquired Avio in 2013 and Rolls-Royce took control of ITP Aero . Tax policy Tax policy refers to the guidelines and principles established by a government for the imposition and collection of taxes . It encompasses both microeconomic and macroeconomic aspects, with the former focusing on issues of fairness and efficiency in tax collection, and

1449-510: The Airbus A380 , less than 100 major suppliers outsource 60% of its value, even 80% on the A350 . Boeing embraced an aggressive Tier 1 model for the 787 but with its difficulties began to question why it was earning lower margins than its suppliers while it seemed to take all the risk, ensuing its 2011 Partnering for Success initiative, as Airbus initiated its own Scope+ initiative for

1512-592: The B-1 . Aero Commander , a division of Rockwell International purchased IMCO in 1966 and relocated production to Albany, Georgia the following year. This aeronautical company–related article is a stub . You can help Misplaced Pages by expanding it . Aircraft manufacturer The aircraft industry is the industry supporting aviation by building aircraft and manufacturing aircraft parts for their maintenance . This includes aircraft and parts used for civil aviation and military aviation . Most production

1575-578: The Bombardier Global Express pioneered the "Tier 1" supply chain model inspired by automotive industry , with 10-12 risk-sharing limited partners funding around half of the development costs. The Embraer E-Jet followed in the late 1990s with fewer than 40 primary suppliers. Tier 1 suppliers were led by Honeywell , Safran , Goodrich Corporation and Hamilton Sundstrand . In the 2000s, Rolls-Royce reduced its supplier count after bringing in automotive supply chain executives. On

1638-479: The CSeries partnership between Airbus and Bombardier Aerospace could trigger a daisy chain of reactions towards a new order. Airbus gets a new, efficient model at the lower end of the narrowbody market which provides the bulk of airliner profits and can abandon the slow selling A319 while Bombardier benefits from the growth in this expanded market even if it holds a smaller residual stake. Boeing could forge

1701-731: The Department of Defense and NASA are the two biggest consumers of aerospace technology and products. The Bureau of Labor Statistics of the United States reported that the aerospace industry employed 444,000 wage and salary jobs in 2004, many of which were in Washington and California, this marked a steep decline from the peak years during the Reagan Administration when total employment exceeded 1,000,000 aerospace industry workers. During that period of recovery

1764-520: The VAT is an effective tool to generate revenue for the government, there are some setbacks to the implementation of the VAT in developing countries. One is that there are certain goods and services which are not included in the VAT list and therefore "reduce the benefits from introducing the VAT in the first place." Another one is introducing various VAT rates for different goods and services. This usually leads to

1827-411: The taxes themselves. Secondly, there are the efficiency costs (variously referred to as deadweight losses or excess burden), the third types of costs are compliance costs of taxation, and finally, there are the administrative costs (sometimes referred to as operating costs) of the tax system. Administrative costs can be described as costs incurred by (mainly) public sector agents in order to administer

1890-508: The "Last Supper" at the Pentagon with contractors executives who were told that there were twice as many military suppliers as he wanted to see: $ 55 billion in military–industry mergers took place from 1992 to 1997, leaving mainly Boeing , Lockheed Martin , Northrop Grumman and Raytheon . Boeing bought McDonnell Douglas for US$ 13.3 billion in 1996. Raytheon acquired Hughes Aircraft Company for $ 9.5 billion in 1997. BAE Systems

1953-698: The CSeries, renamed A220, and E-jet E2 are more capable than their predecessors, they moved closer to the lower end of the narrowbodies . In 2018, the four Western airframers combined into two within nine months as Boeing acquired 80% of Embraer's airliners for $ 3.8 billion on July 5. On April 3, 2020, Raytheon and United Technologies Corporation (except Otis Worldwide , leaving Rockwell Collins and engine maker Pratt and Whitney ) merged to form Raytheon Technologies Corporation , with combined sales of $ 79 billion in 2019. The most prominent unions between 1995 and 2020 include those of Boeing and McDonnell Douglas;

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2016-822: The French, German and Spanish parts of EADS; and United Technologies with Rockwell Collins then Raytheon, but many mergers projects did not went through: Textron-Bombardier, EADS-BAE Systems, Hawker Beechcraft-Superior Aviation, GE-Honeywell, BAE Systems-Boeing (or Lockheed Martin), Dassault-Aerospatiale, Safran-Thales, BAE Systems-Rolls-Royce or Lockheed Martin–Northrop Grumman. The largest aerospace suppliers are United Technologies with $ 28.2 billion of revenue, followed by GE Aviation with $ 24.7 billion, Safran with $ 22.5 billion, Rolls-Royce Holdings with $ 16.9 billion, Honeywell Aerospace with $ 15.2 billion and Rockwell Collins including B/E Aerospace with $ 8.1 billion. Electric aircraft development could generate large changes for

2079-1130: The United States ( Boeing ), Montreal and Toronto in Canada ( Bombardier , Pratt & Whitney Canada ), Toulouse and Bordeaux in France ( Airbus , Dassault , ATR ), Seville in Spain and Hamburg in Germany ( Airbus ), the North-West of England and Bristol in Britain ( Airbus and AgustaWestland ), Komsomolsk-on-Amur and Irkutsk in Russia ( Sukhoi , Beriev ), Kyiv and Kharkiv in Ukraine ( Antonov ), Nagoya in Japan ( Mitsubishi Heavy Industries Aerospace and Kawasaki Heavy Industries Aerospace ), as well as São José dos Campos in Brazil where Embraer

2142-416: The ability to analyse spending statistics in their country and thus they are not able to produce changes to the tax system (mainly the sales taxes) in their country. "With regard to taxes on imports, lowering these taxes will lead to more competition from foreign enterprises. While reducing protection of domestic industries from this foreign competition is an inevitable consequence, or even the objective, of

2205-506: The aerospace suppliers. On 26 November 2018, United Technologies announced the completion of its Rockwell Collins acquisition, renaming systems supplier UTC Aerospace Systems as Collins Aerospace , for $ 23 billion of sales in 2017 and 70,000 employees, and $ 39.0 billion of sales in 2017 combined with engine manufacturer Pratt & Whitney . Before the 1980s/1990s, aircraft and aeroengine manufacturers were vertically integrated . Then Douglas aircraft outsourced large aerostructures and

2268-444: The balance between efficiency and equity. And the best point of this balance is called 'Pareto improvement'. This is the ideal answer to reply for the question of which policies should be implemented. The choices or decision of government are one of social choices. Social choice consists of two elements: Individual level and societal level. For the individual level, each individual builds their preference and has their utility following

2331-647: The budget's constraint. This can form an indifference curve. And we can say that the points which are on this curve are matched to pareto efficiency. In the society's level, the curve are created by seeing the participants as group A and group B. Here, the curve are an inversely proportional relationship which is a very common style in the Pareto efficiency's curve. In this curve, when group A's utility will get down, group B's utility will get increased.(There are other curves in other ways: Utilitarian way and Rawlsian way). When attempting to implement economic policies and projects,

2394-510: The compliance of individual taxpayers. These examples include the costs of labor and time required for the completion of tax activities, such as acquiring the necessary knowledge to operate within the tax system properly, or compiling and creating all documents needed. More examples include the cost of purchasing professional assistance for the completion of tax activities, or other expenses connected to tax activities, such as purchasing software and hardware. Other types of compliance costs, such as

2457-439: The costs of complying with tax requirements - it includes the costs of labour/time consumed in completion of tax activities, filling out forms, record keeping, the fees paid to professional tax advisers, transfer pricing and many more. Tax compliance costs are the costs "incurred by taxpayers, or third parties such as businesses, in meeting the requirements laid upon them in complying with a given structure and level of tax". There

2520-419: The equity and maximizing economic efficiency . The trade-off between equity and efficiency is at the heart of many discussions of tax policy. Two questions are debated. First, there is disagreement about the nature of the trade-off . To reduce inequality , how much efficiency do we have to give up? Second, there is a disagreement about the relative value to be attributed to the reduction in inequality compared to

2583-524: The global aerospace industry and research effort. In Russia , large aerospace companies like Oboronprom and the United Aircraft Corporation (encompassing Mikoyan , Sukhoi , Ilyushin , Tupolev , Yakovlev , and Irkut , which includes Beriev ) are among the major global players in this industry. Important locations of the civil aerospace industry worldwide include Seattle , Wichita, Kansas , Dayton, Ohio and St. Louis in

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2646-476: The highest tax bracket (with the highest marginal tax rate) as an individual often requires incomes so high that only a small number of people in the country reach it. Similarly to the case of the personal income tax, there are various rates of the corporate income tax based mainly on the sector that the company generates revenue in. This allows the corporations to take actions which allow them to pay lower taxes and effectively practice tax avoidance . As much as

2709-584: The income effect, which for tax policy purposes often needs to be assumed to cancel out in the aggregate. The efficiency loss is depicted on the demand curve and supply curve diagrams as the area inside Harberger's Triangle . National Insurance in the United Kingdom and Social Security in the United States are forms of social welfare funded outside their national income tax systems, paid for through worker contributions, something labeled

2772-512: The largest industrial bases in 2017 were the United States with $ 408.4 billion (representing 49% of the whole), followed by France with $ 69 billion (8.2%), then China with $ 61.2 billion (7.3%), the United Kingdom with $ 48.8 billion (5.8%), Germany with $ 46.2 billion (5.5%), Russia with $ 27.1 billion (3.2%), Canada with $ 24 billion (2.9%), Japan with $ 21 billion (2.5%), Spain with $ 14 billion (1.7%) and India with $ 11 billion (1.3%). These ten countries represent $ 731 billion or 87.2% of

2835-416: The latter focusing on the overall quantity of taxes to be collected and its impact on economic activity . The tax framework of a country is considered a crucial instrument for influencing the country's economy . Tax policies have significant implications for specific groups within an economy, such as households, firms, and banks. These policies are often intended to promote economic growth ; however, there

2898-532: The market, the organization announced in 2020 that the objective is to ensure that tax rules do not discourage individuals from benefiting from the internal market. The Communication "Removing cross-border tax obstacles for EU citizens" outlines the most serious tax problems that EU citizens face in cross-border situations, such as discrimination, and double taxation. The tax policies of different countries differ in many ways. Besides that, there are some patterns that we can observe among various groups of countries with

2961-425: The measurement of the net benefits of different groups are needed and to consider that the project/policy is the Pareto improvement. Under social choice if the project/policy has net positive gains and reduces measured inequality, it should be taken. If net positivity can not be clearly determined, other factors are utilised: The compensation principle, the inverse proportional of measures of efficiency and equality, and

3024-409: The negative psychological effects on taxpayers as a result of the attempts to comply with the current tax policy, or many types of social costs, are very intangible, and it is, therefore, hard to quantify them, even though the effect of their existence is visible, especially for individuals and small businesses. An equity-efficiency tradeoff appears when there is some kind of conflict between maximizing

3087-465: The personal income tax on each group. The limitations which often make this kind of tax ineffective in developing countries are several various exemptions in the parts of individual's income that are taxable as well as setting off the borders between different tax brackets. These make it often more favourable for an individual to establish a business and therefore pay (lower) corporate income tax rather than personal income tax. But even without this, reaching

3150-412: The problem regarding unclear incomes, a big part of the spending in developing countries is done in such a way that does not lead to extensive spending reports being supplies to the government. This lack of information is supported by the fact that just like in the case of incomes, most spending is done in cash which is, again, more difficult to keep record of. In this situation, policymakers are deprived of

3213-447: The reduction in efficiency. Some people claim that inequality is the central problem of society, and society should simply minimize the extent of inequality, regardless of the consequences to efficiency. Others claim that efficiency is the central issue. These disagreements relate to social choices between equity and efficiency. Equity can be divided into two main groups: horizontal equity and vertical equity. Efficiency for economists

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3276-447: The rules of the EU. There is a possibility for tax field action of the EU under the principles of subsidiarity and proportionality, and also under the assumption that the member state in question was not able to provide an effective solution, therefore there is need for support in terms of coordination for example. As a part of the EU's objective to empower its citizens to play a full part in

3339-549: The same characteristics. An example of this would be the low level and utility of taxes in developing countries . "Low-income countries typically collect taxes of between 10 to 20 percent of GDP, while the average for high-income countries is more like 40 percent." There are several challenges that tax policymakers in developing countries have to face and that make it difficult for each of these developing countries to introduce effective and equitable tax systems, tackle inequality and corruption or increase their development level. As

3402-442: The situation and at the tax revenue of the county better. These include changes in the attitude towards foreign investment in the country. This money-flow and its taxation in one of the main sources of revenue for many developing countries. This should be changed, but at the same time, the measures used should not make it less beneficial for foreign investors to bring their money to the country. Another problem that needs to be tackled

3465-453: The tax burden. The tax code is often complex and includes rules that benefit certain groups of taxpayers while shifting more of the burden to others. There are some main reasons why government needs to collect taxes: Policymakers debate the nature of the tax structure they plan to implement (i.e., how progressive or regressive ) and how these taxes might affect individuals and businesses (i.e., tax incidence ). The reason for this focus

3528-494: The tax system, judicial costs of administration of the tax dispute system, and many more. Indirect administrative costs are on the side of taxpayers (the burden is borne by the government). Tax compliance costs are those costs "incurred by taxpayers, or third parties such as businesses, in meeting the requirements laid upon them in complying with a given structure and level of tax" (Sandford, Godwin and Hardwick, 1989, p. 10). Indirect administrative costs are mainly connected to

3591-427: The tax-benefit system. The relationship between administrative and compliance costs of taxation is not always clear at a first glance. Sometimes, there might be an inverse relationship between them, which is a phenomenon called "The administrative-costs compliance-costs trade-off." An example of this inverse relationship might be an implementation of a self-assessment system in taxation. However, This trade-off principle

3654-499: The weight of administrative costs and compliance costs of taxation. There are two main types of administrative costs: Direct administrative costs are on the government side (the burden is borne by the government). "It is not immediately obvious, exactly, which activities should be attributed to the operation of the … system" (p. 19). Administrative costs are mainly connected to running the tax collection office - it includes salaries of staff, costs of legislative enactment relating to

3717-407: The weighted benefits approach. The inverse proportional of measures of efficiency and equality is the judgement based on the contemplation of efficiency and equality. The weighted benefits approach is focused on the total amount of utility. The compensation principle is based on the willingness to pay the tax. If people are motivated to pay, there is a growth in consumer surplus. In this principle, when

3780-459: The whole industry. In 2018, the new commercial aircraft value is projected for $ 270.4 billion while business aircraft will amount for $ 18 billion and civil helicopters for $ 4 billion. In September 2018, PwC ranked aerospace manufacturing attractiveness: the most attractive country was the United States , with $ 240 billion in sales in 2017, due to the sheer size of the industry (#1) and educated workforce (#1), low geopolitical risk (#4, #1

3843-552: The willingness to pay is more than the cost to do so (Including if there is a cost imbalance for individuals) the projects/policies should be taken. The compensation principle can overcome the difficulty of taxation due to the intervening efficiency. the EU Commission stated the belief that "there is no need for an across the board harmonization of Member States' tax systems.". Member states are to take full control of which tax system they want to impose, as long as they respect

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3906-500: Was bankrupt , Airbus, Boeing or Bombardier declined to take the 728JET /928JET large regional jet program as mainline and regional aircraft manufacturers were split and Airbus was digesting its ill-fated Fokker acquisition a decade earlier. On September 4, 2017, United Technologies acquired Rockwell Collins in cash and stock for $ 23 billion, $ 30 billion including Rockwell Collins' net debt, for $ 500+ million of synergies expected by year four. The Oct. 16, 2017 announcement of

3969-422: Was worth $ 838.5 billion in 2017: aircraft & engine OEMs represented 28% ($ 235 Bn), civil & military MRO & upgrades 27% ($ 226 Bn), aircraft systems & component manufacturing 26% ($ 218 Bn), satellites & space 7% ($ 59 Bn), missiles & UAVs 5% ($ 42 Bn) and other activity, including flight simulators , defense electronics, public research accounted for 7% ($ 59 Bn). The Top 10 countries with

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