President Donald Trump proposed a military budget of 1.5 trillion dollars for the year 2027, a significant increase of 50% compared to the current year. As part of this initiative, Trump stated that he will prohibit defense contractors, such as RTX, from paying dividends or buying back shares until they accelerate weapons production. This rare measure has led to a decline in stocks in the defense sector. Trump also criticized the salaries of executives in the defense industry, proposing a cap of 5 million dollars per year. He emphasized that these companies should invest in military production capabilities instead of distributing profits to shareholders.
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