Knowledge

Auto parts and related industries to boost the US economy

A nonprofit research organization, said cars, cars - more specifically auto parts and repair and service, is one of the main factors driving the US economy. A study based in Ann Arbor, Michigan Center for Automotive Research (CAR) found that vehicles have a significant impact on the US economy, there are more than 735 billion US dollars a year in which the inflow, of which parts manufacturing, sales and repair and services accounted for $ 173 billion.

 According to this study CAR, the $ 30 billion state revenue by automobile sales and maintenance services generated, and $ 860 million of income tax by the car manufacturers, car dealers and suppliers of direct employment generated by the levy. In 2010, the automotive industry generated at least $ 43 billion in federal taxes, including $ 14 billion in income taxes and $ 29 billion in federal motor fuel tax. In 2010 it will be $ 91.5 billion in revenue turned over to the state treasury, on average, they accounted for 13% of the state's total tax revenue. Sustainable economic development and strategy teams responsible for the study, said CAR, the automotive industry accounts for 13% of all state government revenue.

 This analysis further deepened the understanding of how the automotive industry have a significant impact by promoting the financial stability of the state and the federal government on the US economy. "With the continuous improvement of the economic situation, the auto companies are expected to see sales and increase employment, which would result in additional state and federal taxes." CAR research on the automotive industry due to the sales, employment and business operations as well as use of the car, financial support in the form of taxes paid to the state government and the federal government were to quantify the contribution of these revenues highlights the breadth and depth.

 In addition to the acquisition of a significant business tax ($ 30 billion) of vehicles produced by foreign government agencies also collect taxes from a variety of sources. CAR noted that these sources include income tax employee working in the automotive industry to pay ($ 15 billion), fuel tax, registration and driver license office costs ($ 89 billion), the car companies themselves pay corporate income tax and technology licensing fees ($ 750 million). The study also provided a detailed breakdown of each American state car tax.