Leaderboard

Manufacturing companies make the decision to assemble out of the U.S. for several reasons - labor being just one of them. Direct labor for auto companies accounts for about 15% of the cost of the vehicle whereas embedded taxes account for just over 20%. Manufacturing will tend to go where the labor cost per hour and the tax component is less. What suprises me is that many people think corporations pay taxes, they don't. They collect them from the retail consumer and pass them through to the Government. All they do is jack up the cost of everything we buy. At some point the UAW is going to see the enormous benefit from the adoption of the "Fair Tax". With 0 tax embedded in an automobile built in the U.S., Ford and GM can export domestically made vehicles around the world at very competitive prices. Manufacturing jobs would flow back to the States in enormous numbers. More union members, more dues and more power for the leaders. When you shift the total tax burden to the retail sale then everybody pays their "Fair Share" - crooks, tax evaders, pimps, illigals, visitors, trust fund manipulators, etc. So instead of just under half of us paying income taxes, everybody that consumes pays for the cost of government. All legal households get a monthly deposit to their account for the presumed taxes on the necessities, depending on the size of their family.