Got Tax NAM Public Affairs Conference

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Got Tax?NAM Public Affairs Conference

• Lawrence Duncan, III
• Vice President,
• Federal and State Government Relations PAC
  Affairs
• Lockheed Martin Corporation
• April 7, 2008

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Lockheed Martin At a Glance

• Headquarters
• Bethesda, Maryland
• Size
• 140,000 Employees
• 41.9B in 2007 Sales
• Organization
• Aeronautics
• Electronic Systems
• Information Systems and Global Services
• Space Systems
• What We Do
• Research, design, develop, manufacture,
  integrate, operate and sustain technology systems
  and products, as well as provide management,
  engineering, technical, scientific, logistic and
  information services globally

Key Programs F-22 F-35 C-130 Missile
Defense Radar Systems NASA Programs Satellites Nex
t Gen ID System Presidential Helicopter IT
Solutions US Census Flight Service
Stations Transportation Worker IDs Mission
Operations
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Key Facts

• The Aerospace and Defense Industry employs
  637,000 workers, representing 4.4 of all U.S.
  manufacturing jobs
• Lockheed Martin employs over 50,000 engineers and
  scientists
• Lockheed Martin spends over 1.6B on research and
  development activities 950M in QREs
• Examples of Lockheed Martin technology
• JSF Lift Fan
• Stealth
• Precision Strike
• Postal Imaging, High Speed Recognition
• Anti-Terrorism Systems

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Warning Todays Tax Code is Hazardous to Our
Economic Health

• Harms U.S. competitiveness
• Discourages investment in the U.S.
• Distorts business decisions w/ complexity
• Under-values U.S.- based RD

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Some Disturbing Facts . . .

• Twenty years ago, U.S. led the world in cutting
  corporate tax rates
• Today, the U.S. has one of the highest corporate
  rates in the world
• The Tax Code is overly complex and highly
  burdensome and hasnt been simplified in over
  20 years

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Some More Disturbing Facts . . .

• U.S. talks a good game on RD, but the Credit
  keeps lapsing
• U.S. RD Credit isnt as valuable as RD
  incentives in foreign countries
• U.S. RD Credit doesnt give equal value to all
  U.S. companies engaged in U.S.-based research

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Three Sound Investments

• Step 1 - Lower the U.S. Corporate Tax Rate
• Step 2 - Simplify the Tax Code
• Step 3 - Make the RD Credit More Robust and
  Permanent

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What Well Get in Return

• Lower Corporate Tax Rate
• Long term Economic Growth
• Higher Wages for Workers
• More Business Investment
• Simplified Tax Code
• Reduced Business Costs
• Increased Tax Compliance
• Strengthened, Permanent RD Credit
• More U.S. Innovation
• Enhanced National Security
• More High-Skill, High-Wage U.S. Jobs

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