The Chicken Tax

Non-repair car talk
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kevm14
Posts: 15762
Joined: Wed Oct 23, 2013 10:28 pm

The Chicken Tax

Post by kevm14 »

https://en.wikipedia.org/wiki/Chicken_tax

We've had this tax since 1963.

It impacts all manufacturers though because it taxes based on whether or not you are importing the vehicle, not on which country engineered the car or owns the brand. In fact, Ford circumvents the tax on its own Transit Connect (made in Turkey) by stripping the interior and shredding it and allowing it to be classified as a delivery vehicle rather than a passenger vehicle.

http://www.wsj.com/articles/SB125357990638429655

Wiki tells me the Tacoma has been manufactured in the US the entire time we've had it. Bill, I'm not sure what your point was regarding the Tacoma and this tax.

The Tundra is also built in the US. The Silverado and F-150 outsell it by a substantial margin. The Tacoma isn't all that far ahead in sales than the Tundra.
bill25
Posts: 2583
Joined: Thu Oct 31, 2013 2:20 pm

Re: The Chicken Tax

Post by bill25 »

My point was that aside from American brands and Toyota, companies pay a high tax so many companies don't try to compete if they don't build it here. That was it.

Light trucks includes vans, pickups, and sport utility vehicles so the Tundra, F-150 etc. are all in the same class, but don't have the 25% tax. Cutting 25% from your bottom line is a pretty big reason to not be competitive, or be very competitive depending on the side of the tax you are on.
Fast_Ed
Posts: 550
Joined: Wed Oct 23, 2013 9:45 pm

Re: The Chicken Tax

Post by Fast_Ed »

I think we're all missing the point here, which is:

This was a witch hunt targeting the VW bus. That is shameful.
bill25
Posts: 2583
Joined: Thu Oct 31, 2013 2:20 pm

Re: The Chicken Tax

Post by bill25 »

I also thought it was a ploy to keep American Trucks number 1 in America. Everyone else had a 25% cost of entry per vehicle. Until they started being built here.
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