wrote in message
...
On Fri, 05 Dec 2008 00:11:00 -0600, F. George McDuffee
wrote:

The automotive transplants, because they are making a profit, are
paying a reasonable share of the cost of running the government
at various levels through their *INCOME* taxes, while "Detroit,"
because they are producing cars at a loss, are not paying any
income tax, and indeed are generating large carry forward tax
losses which will offset future income tax payments (assuming
they ever earn any income).

Just let me step in here and make a comment. I have spent my entire
"career" (if you can call it that) working for various automotive
components suppliers......INCLUDING a stint at a tier 1 supplier to
the Honda, Toyota, Nissan "kiretsu" (might be spelled wrong...damn
Japanese translations).

If you think these assholes are over here paying income taxes, you are
sadly mistaken. While the actual end item suppliers may be paying
taxes, they have a whole supply chain they brought with them doing
some extremely underhanded stuff.

The company I worked for (which shall remain nameless because I have
LITIGATION pending against them) was doing this:

Purchase components at jacked up prices from the parent company in
Japan, assembly them with American workers here, sell the end item to
Honda, Toyota, Nissan "at cost" or often times below cost, PROFITS
TRANSFERRED HOME TO JAPAN IN COMPONENT PRICE.....report little or no
income to Uncle Sam.

You're quite right, and it's so common in world trade that economists even
have a name for it, which I forget at this late hour. Every manufacturer who
assembles in other countries does the same thing. That's how the world's car
manufacturers, and other manufacturers, get their profits out of China, for
example. They all do it.

It's not playing nice but it's not the biggest problem we face, either.

--
Ed Huntress