THE AUTO INDUSTRY HAS AN 18% HANDICAP

Our present Income Tax system is driving the manufacturers overseas for one reason: money. Foreign countries have an 18% advantage over U.S. produced goods, whether competing here or abroad. The following example brings it home real well:

U.S. Production:
If sold in U.S. markets, they pay U.S. income and payroll taxes.
If sold in foreign markets, they pay U.S. income, payroll and foreign VAT taxes.

Foreign Production:
If sold in U.S. market, they pay no U.S. income, payroll or foreign VAT taxes.
If sold in foreign markets, they pay foreign VAT taxes.

No wonder foreign countries can sell their cars (and other goods) cheaper than the U.S.
No wonder our U.S. manufacturing and jobs are leaving this country at an alarming rate.

Manufacturing today represents half of what its share of GDP was in the 1950s. Wages are lower (or non-existent) because of overseas competition.

AND THEN COMES THE FAIRTAX! (hopefully)

The FairTax will make the U.S. the manufacturing capital of the world by being the only industrialized nation with a zero rate of tax on manufacturing and hiring U.S. workers.
The change in our tax structure will put the U.S. on a level playing field and you will see the price of automobiles (and other goods) go down, able to compete with foreign markets. There would be more jobs at higher wages and more money to spend and invest. The FairTax will also save the U.S. more than $100 billion in exports annually, just by getting rid of our present unfair tax structure.