This study confirms that the U.S. automotive sector has a huge economic impact throughout the country. In 18 states, autos generate 15-23 percent of state tax revenues
Washington, DC (PRWEB) April 11, 2012
A new report from a leading industry research group documents that more than $135 billion in federal and state revenue is generated by the auto industry and from drivers and car owners nationwide.
“This study confirms that the U.S. automotive sector has a huge economic impact throughout the country. In 18 states, autos generate 15-23 percent of state tax revenues,” said Mitch Bainwol, President & CEO of the Alliance of Automobile Manufacturers. “Cars are a massive economic driver, from their production and sales to their use and maintenance.”
In a nationwide study released this week, the Center for Automotive Research in Ann Arbor, Michigan found that autos generated revenue from income taxes, sales taxes, corporate income taxes, licensing and registration fees and fuel taxes:
- In 2010, the auto industry generated at least $43 billion in federal tax revenue, including
$14 billion in income taxes and $29 billion from federal motor fuel taxes. (Property taxes are not included.)
- The auto industry also generated more than $91.5 billion in state government revenue in 2010, or 13 percent of total state tax revenue on average.
- Of the total state tax revenue, $60 billion is produced from use taxes and fees (fuel taxes, license and registration fees).
- $30 billion of state tax revenue is generated from sales and service of vehicles.
- $860 million comes from state income taxes on direct employment by automakers, suppliers and dealers.
- $750 million is generated by state business taxes (corporate income taxes, licensing fees).
Revenues from car sales alone totaled over $564 billion in 2010, an increase of 17 percent from the previous year. The manufacture and sales of parts, along with repairs and service, account for another $173 billion in economic activity. So, automobiles drive more than $735 billion into the economy each year.
“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. These are American families living all over this country. In many communities, they form the backbone of local and even state economies. And as jobs are added, these numbers will climb. So auto policy is central to the economic vitality of virtually every state,” said Bainwol.
To view federal and state information on taxes and fees generated by autos, visit http://www.autoalliance.org.
The study was conducted by the Center for Automotive Research (http://www.cargroup.org).
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The Alliance of Automobile Manufacturers is a trade association of 12 car and light truck manufacturers including BMW Group, Chrysler Group LLC, Ford Motor Company, General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz USA, Mitsubishi Motors, Porsche, Toyota, Volkswagen and Volvo.