Quote:
Originally Posted by Canuck
I am a Canadian and I will always buy North American over Japanese since I would rather see my neighbour with a job than driver a foreign car.
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You seem to be under the mistaken impression that American vehicles are actually made in the US. The vast majority of the parts are actually made elsewhere. And, about half the assembly plants are elsewhere. They have been moving jobs overseas for more than 20 years.
It's really sad. We tax domestic manufacturing at about 40% of gross. We have "safety" and "environmental" regulations that mostly make sense. China and Korea do not tax manufacturing for export, and they have essentially no safety or environmental regulation. This needs to change.
We could level the tax part of the playing field by two little changes in our income tax code:
1. Money received from foreign nationals (not US taxpayers) should be deductible business expenses (i.e., not taxable as income). This would eliminate the tax on exports.
2. Money paid to foreign nationals (not US taxpayers) should NOT be deductible as business expense. This would impose the same tax rate on foreign manufacturing and services as we impose on domestic manufacturing and services for our domestic market.
More will be needed to level the safety and environmental parts of the playing field. I don't know a good way to do that.