Give American Auto Makers a Break

Give American auto manufacturers a break bya solution even though United States made about
giving a $3,000 tax credit to US consumers foreight times the amount from tariffs on imported
purchasing American manufactured cars. Mostshoes than from imported cars
people are not willing to switch their favoriteAmerican auto makers are the most productive
brands without the right incentives. US can attractworkers in the world. We can create more jobs in
foreign manufacturers to build their cars here, ifthe US by helping ourselves without trade
more people buy cars that are manufactured inembargoes .The best idea to help ourselves would
the United States instead of overseas.  Morebe to give a $3000 tax credit to consumers for
than half of all Toyota’s that are sold in thepurchasing new cars that are manufactured in the
United States are manufactured right here in theUnited States. The credit should include every
US. Toyota realized the big movement in theauto maker that builds a plant in the US and
United States in the 80’s towards buyingmanufactures their car here, even if the auto
products that are manufactured in the Unitedmaker is based overseas. The labor cost for
States. Other car makers followed suit includingevery car that is manufactured in the United
BMW, Honda, Hyundai, Mazda, Nissan, MercedesStates is roughly $1400. The benefits are not just
and Subaru. But most of their cars are stillfor the people that work directly in the
manufactured overseas.manufacturing plant but it will include the people
                There are 640,000that build the plants, workers that maintain the
active members in the UAW throughout theplan, the administrative needs of the plant, and all
United States, Canada and Mexico. In 2007the other local businesses that will benefit from
approximately 70,000 UAW workers lost theirthe economic resources that will be spent in the
jobs in the United States. These jobs are veryarea. Here is an example of the economic
high paying jobs with generous pension plans andbenefits from a family of four with two
health benefits. An average UAW worker makesemployees in the UAW and two children
$26 an hour, with benefits and contributions tocompared to collecting unemployment.
pension plans that average is $65 per hour. In.
2008 the total job cuts is expected aboutAverage income for two adults working in the
100,000, by the end of the year. In NovemberUAW.
2008, GM had a 45 percent drop in sales ,$108160
Ford’s sales dropped 30 percent and ChryslerFederal income Tax collected after standard
sales dropped 36 percent compared to last year.deductions and two exemptions for two workers.
If this trend continues, the big three will be forced$13,816
to go out of business. In 2007 GM posted a lossUnemployment compensation for two at $364 a
of $38.7 billion, Ford posted a loss of $2.7 billionweek for 26 weeks.
and Chrysler posted losses of 2.92 billion. While$37856
Toyota recorded record profits near $14 billion.Federal Income Tax collection from benefits after
                American automakersstandard deduction and exemptions.
need more money to save themselves from$1,358
bankruptcy. They need people to actually buy theAverage tariff collected on $20,000 import car
cars that they produce. US taxpayers are shelling$500
out $700 billion dollars to salvage the financialThere are approximately four million cars that are
sector and hundreds of billions still pending. Withimported into the United States. Just imagine how
the uncertaintity of the economy, almost everymany jobs that we can add or retain by
industry is struggling to stay alive. Some parts ofmanufacturing the cars right here in our own
Michigan that use to survive from the autobackyard. We have the technology and the
makers now look like ghost towns. To help thepeople that can make it happen. Instead of bailing
auto industry and the people that rely onout the industry, let’s give the consumers
manufacturing, Governor Jennifer Granholm ofincentives to buy American made cars.
Michigan went to Washington to ask for higherManufacturing is the backbone of the American
tariffs on foreign imports. If we put higher tariffseconomy; we cannot afford to ship these jobs
on imports, there is going to be an internationaloverseas. This country became great because of
crisis with trade embargos. The average tariff onour great manufacturing tradition. We must
most import cars is two and one-half percent.preserve our manufacturing jobs, to get our
Increasing tariffs will create a bigger problem thaneconomy strong again.