Corporate Taxes Are Killing the U.S. Auto Industry

Posted on November 10, 2008
Filed Under Uncategorized |

Let’s agree that lowering corporate and capital gains taxes will result in more stimulus for U.S. auto makers than pouring taxpayer monies into them. The Toyota example may suggest an incongruent factor that disproves the thesis, but Toyota doesn’t have the UAW on it’s back either.

To make matters worse, the main competitors that are not Japanese all operate out of countries with much lower tax rates than the United States. When profits pile up in the good years, U.S. companies pay about 34 percent more in taxes than those operating elsewhere in the Organisation for Economic Co-operation and Development–an international group of the richest nations. This drains cash reserves that are necessary for retooling when the bad times hit.

[From AEI - Short Publications - Corporate Taxes Are Killing the U.S. Auto Industry]

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