The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

What Happens When the Bosses Get Tax Cuts

Sep 27, 2010

The city of Sterling Heights, Michigan is losing two million dollars in tax revenues from Ford and Chrysler. So is the city of Wayne, another site of a Ford plant in Michigan. Detroit, along with most of the suburbs where auto plants are located, saw their tax payments drop precipitously.

The Michigan Tax Tribunal reduced tax liabilities on existing equipment, saving auto makers from 30 to 80% of the taxes they used to pay to local communities.

These Michigan cities will be laying off still more fire fighters and police and other city workers, cutting other services as well. But a Chrysler spokeswoman said, “We always support the communities in which we do business and where our employees live.”

Autoworkers can see very clearly how well the auto makers support their communities – and how very well the tax tribunal supports the auto makers.