A study released on Wednesday, April 11th, shows that the auto industry accounts for more than $135 billion of the nation’s federal and state tax revenues.
The study, commissioned by the Alliance of Automobile Manufacturers, tries to highlight the huge economic impact of the sale and use of the nation’s more than 250 million vehicles.
“This study confirms that the U.S. automotive sector has a huge economic impact throughout the country,” said Mitch Bainwol, president & CEO of the alliance, the trade organization representing Detroit’s Big Three automakers, Toyota Motor Corp. and eight others. “Cars are a massive economic driver, from their production and sales to their use and maintenance.”
In Michigan total auto taxes accounted for 13% of all state tax revenue, $2.8 billion out of $22.2 billion in 2010, in California $10.9 billion in tax revenue, or 10% of the state’s budget, and Oklahoma had the largest share of taxes 23% of the state budget coming from the auto sector. Two years ago the industry provided $43 billion in federal tax revenue, including $14 billion in income taxes and $29 billion from federal motor fuel taxes.
“In this country, 8 million people are employed directly and indirectly as a result of the manufacture, sale and repair of automobiles. Those 8 million people earn $500 billion in compensation,” Bainwol said. “So, auto policy is central to the economic vitality of virtually every state.”