Depending on whom you believe, the excise tax on tires is protecting American jobs or running up the cost of tires. President Obama imposed a 35 percent excise tax on foreign made tires, that took effect, in September to counteract the claim that about 5,000 U.S. workers have lost their jobs in the past five years due to imports.
The tax adds about $35 to the price of two $50 snow tires or $70 for a set of four tires. We are expecting to replace 210 million tires in the next year. Assuming that the price for a tire is $50, the price of two would be $100 with an add on that would be $135. The cost of domestic tires is going to increase also because of the shortage caused by the tax. With 105 million sets sold that would mean that we will pay 3.675 billion dollars in tax. That’s 735 thousand dollars annual tax per job lost in the domestic tire industry. I didn’t know tire workers made that much. How does that make any sense unless the government having a windfall in tax collection is the only goal?
I was talking to a friend who was upset that his medi-care premium was going up from 98 dollars a month to 150 dollars a month next year. That is a hefty increase. Are all senior citizens getting the same increase? I wonder if that increase was calculated by the same people who figured out that a 35 percent excise tax on tires would save jobs or that carbon emissions are causing global warming?
Cap and Trade is on the way to our neighborhood. That’s another word for a tax on any business or person who uses energy to live or work. You see, energy use causes carbon emission that is causing global warming, and the tax will save the world while destroying jobs in the United States. Don’t worry, that hoax you are hearing about being perpetrated on the world will be put to rest when the Copenhagen agreement is endorsed by the President next week. Ironically, on December 7th.
While this is going on the City of Pittsburgh is in a debate concerning taxing student tuition as a privilege. Mr. Motznik told the students that he hoped they were upset with the universities because they don’t pay their fair share of taxes. The audacity of elected officials, who forget what schools and non-profits do for our cities and the region, just so they can tax the public in a new way.
Wait until you see the VAT tax that comes with the health care legislation we are bound to get. Ah yes, a tax that is hidden and the people don’t realize they are paying, what a windfall for tax and spend officials. Another means, like those listed above to tax the public in a new way! I think it is time we all wake up and smell the coffee.
