Foreign Auto Plants Have Received $3.6 Billion in Subsidies

[Omaha Steve]

http://www.marketwatch.com/news/story/Foreign-Auto-Plants-Have-Received/story.aspx?guid={6B42E877-615D-4FD8-883F-2D83EF6319D2}

Last update: 2:57 p.m. EST Dec. 12, 2008

WASHINGTON, Dec 12, 2008 /PRNewswire-USNewswire via COMTEX/ -- Responding to many queries, Good Jobs First today released its summary of state and local subsidies given to foreign-owned auto assembly plants, totaling $3.6 billion.
"As elected officials debate aid for the Big 3, taxpayers have the right to know the full extent of government involvement in America's auto industry," said Greg LeRoy, GJF's executive director. "And while proposed federal aid to the Big 3 would take the form of a loan, the vast majority of subsidies to foreign auto plants were taxpayer gifts such as property and sales tax exemptions, income tax credits, infrastructure aid, land discounts, and training grants," he said.

Honda, Marysville OH, 1980, $27 million*

Nissan, Smyrna, TN, 1980, $233 million**

Toyota, Georgetown, KY, 1985, $147 million

Honda, Anna, OH, 1985, $27 million*

Subaru, Lafayette, IN, 1986, $94 million

Honda, East Liberty, OH, 1987, $27 million*

BMW, Spartanburg, SC, 1992, $150 million

Mercedes-Benz, Vance, AL, 1993, $258 million

Toyota, Princeton, IN, 1995, $30 million

Nissan, Decherd, TN, 1995, $200 million**

Toyota, Buffalo, WV, 1996, more than $15 million

Honda, Lincoln, AL, 1999, $248 million

Nissan, Canton, MS, 2000, $295 million

Toyota, Huntsville, AL, 2001, $30 million

Hyundai, Montgomery, AL, 2002, $252 million

Toyota, San Antonio, TX, 2003, $133 million

Kia, West Point, GA, 2006, $400 million

Honda, Greensburg, IN, 2006, $141 million

Toyota, Blue Springs, MS, 2007, $300 million

Volkswagen, Chattanooga, TN, 2008, $577 million

Total: more than $3.58 billion

* total of direct subsidies to all Honda facilities in Ohio
** includes about $200 million for expansions of Smyrna and Decherd plants

List does not include joint ventures with U.S. companies
These data, drawn primarily from contemporary media accounts, are very conservative. They do not account for inflation; some would be worth far more in today's dollars. They do not include any estimate of subsidies granted to hundreds of foreign-owned auto supply companies that have located in the same areas, virtually all of which were also heavily subsidized. Finally, they do not reflect later news accounts, which often place higher subsidy values.
Good Jobs First is a non-profit, non-partisan research center promoting best practices in economic development and smart growth, based in Washington, DC, with offices in New York and Chicago.

SOURCE Good Jobs First

[Mnemosyne]

1. Well, aren't we generous! damn. n/t

[ContinentalOp]

2. I guess I'll stick my neck out and say that I'm sort of OK with that.

These are tax breaks given to these foreign corporations to build factories and create jobs here in the US. That's not a terrible thing. On the other hand, we're just going to hand a bunch of cash to the Big 3 while they continue to build factories overseas and lay off American workers?

And of course the Big 3 would have been eligible for all of these same tax incentives would they not? I'm all for protecting our own national industry by giving the Big 3 additional tax breaks and subsidies, so long as they're designed in such a way to keep jobs in the US and promote environmental responsibility. But you're trying to compare $4 billion in tax breaks given to 8 different corporations at no real out-of-pocket expense for the taxpayer vs. what, $25 billion in cash to only 3 corporations?

[Usrename]

3. REDISTRIBUTION OF WEALTH

For example, Kentucky (home of Toyota and Sen. Mitch McConnell, the leader of the assault on labor) gets back about one-and-a-half dollars ($1.51) for every federal tax dollar that they send to Washington.

Meanwhile, Michigan (home of Detriot, the center of the American auto industry and the UAW) only gets back nine-tenths of a dollar ($.92) for every dollar they send to Washington.

In other words, through through this scheme of subsidies and disproportionate federal taxes, the union workers are actually giving financial aid to the same non-union foreign companies that are screwing them.

http://www.taxfoundation.org/research/show/22685.html

[williesgirl]

4. Add to that the subsidies for the VW/Audi Headquarters in Herndon, VA