Fact or Fiction?

[Magic069]

Ok, I have nothing againist foriegn or domestic cars. I tend to chose what I like through research and what the car has to offer me. Plus, it has to appeal to my personallity.

BUT! There has always been a little voice in my head that kind of bothers me about foriegn automakers. I have been told that foriegn automakers do not get taxed on land or impoted cars under some trade agreement. Meaning that the factories, and the land they sit on, that produce many "foriegn" cars right here in the states aren't being taxed. Causing those cars to be cheaper in the long run.

I have seen this as unfair. Almost like our government is charging are home compianies (or the consumer) more for making, or purchasing a product that oringanatied here.

I was just wondering if this is false, or it is fact.

If it is fact, it will always be a negative chip on my shoulder that the car that they try to sell me will have to overcome.

 

[MazKid]

Well, I donno...There are a lot of US factories making Japanese cars...Mazda in Michigan, Nissan in Tenn., Honda somewhere, ect.

 

[Magic069]

but do they pay taxes on the land?

 

[MazKid]

I doubt it. The plant in Michigan is a Ford line, so Ford might pay for it.

 

[1X83Z]

Yes. Unless car companies are based in a state with no property tax (are there any) and they aren't squatting, they pay property tax, and probably all sort of other high-pollution and industry taxes. The notion that they wouldn't is absurd.

 

[GilesGuthrie]

But in some instances, governments will offer sweeteners such as tax breaks to foreign companies looking to set up car plants on their own soil, in an attempt to increase employment in that region.

It happens all the time in the UK.

 

[Sertsa]

It sounds like someone is telling you stuff that's not been fully researched nor grounded in fact, and is intended to get passionate response rather than thoughtful ones.

A lot of towns and states will give companies large tax breaks as an incentive to locate in their area. It doesn't matter if the company's foreign or not. Besides the incentives, there are other ways they don't pay taxes. In the little town in which I live, there's a big, locally owned excavating company that owns most of the land here and never paid any tax. (I think simply because they set up their headquarters just across the county line).

The funny thing is, if this company paid taxes, the school system would probably be one of the best in the state, instead of ranking among the worst.

So, as for automatically giving foreign automakers breaks and making domestic companies pay? No, that's not acurate. (Besides, the lines on foreign and domestic has become fairly blurred--Chrysler's owned by a German company, remember).

Oh, and Honda's big American plant is in Marysville, Ohio, and having that factory there has done a lot for that region.

 

[1X83Z]

Originally posted by Sertsa
(Besides, the lines on foreign and domestic has become fairly blurred--Chrysler's owned by a German company, remember).
.

Democrats love to say that.

Chrysler MERGED WITH a German company.

 

[Sertsa]

M5. It was hailed as a merger. It was not. There are really very few true mergers.

Take a look at the power structure of the company. It is very clearly and strongly in Germany.

All the Chrysler guys got swept away very soon after the "merger."