Good Example Of Essay On Effect Of Tax Provisions On US Automobile Industry

Type of paper: Essay

Topic: Taxes, Carbon, Vehicles, Cars, Automobile, Industry, Consumption, Production

Pages: 1

Words: 275

Published: 2020/11/12

The automobile industry in the United States has been strongly affected by time to time government regulations, both in the form of taxations or other social mandates considering the externalities effect of the automobile industry. For instance, during the past 10 years, Congressional Committees have issued many new regulations to enhance the safety, reduce air pollution, and to the cut the fuel consumption. One such tax mandate is imposition of Carbon Tax. Important to note, Carbon Tax, is a tax imposed on the entity for release of Carbon-dioxide emitted through the consumption of fossil fuels during the production process and since automobile industry is largely dependent on energy consumption, Carbon Tax is most likely to significantly affect the manufacturers in the industry.
Indisputably, this tax provision will be a considerable benefit for reducing the greenhouse gas emissions, however, market analyst have some other views as they expect that Carbon Tax will be much of a burden on national economy where on primarily basis, the automobile sector will face loss of business to German and Japanese cars, thanks to their hybrid technologies.
Another important aspect is related to cost of carbon emissions for the automobile industry as its lots of energy during the production process. If the tax provisions are applied, this will directly increase the cost of production for the automobile manufacturers making them vulnerable to reduced profit margins and when these companies are already on the billion dollar bailout by the Government, any such situation will brings undesirable effects. This will also affect their international presence where the competition is tough on costing of the product.
Thus, US automakers are most likely to put pressure on Congress to ensure that no such taxes are introduced into the system.

Works Cited

Considering a Carbon Tax: Frequently Asked Questions​. (n.d.). Retrieved February 13, 2015, from http://www.rff.org/centers/energy_and_climate_economics/Pages/Carbon_Tax_FAQs.aspx

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WePapers. (2020, November, 12) Good Example Of Essay On Effect Of Tax Provisions On US Automobile Industry. Retrieved December 09, 2022, from https://www.wepapers.com/samples/good-example-of-essay-on-effect-of-tax-provisions-on-us-automobile-industry/
"Good Example Of Essay On Effect Of Tax Provisions On US Automobile Industry." WePapers, 12 Nov. 2020, https://www.wepapers.com/samples/good-example-of-essay-on-effect-of-tax-provisions-on-us-automobile-industry/. Accessed 09 December 2022.
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"Good Example Of Essay On Effect Of Tax Provisions On US Automobile Industry." WePapers, Nov 12, 2020. Accessed December 09, 2022. https://www.wepapers.com/samples/good-example-of-essay-on-effect-of-tax-provisions-on-us-automobile-industry/
WePapers. 2020. "Good Example Of Essay On Effect Of Tax Provisions On US Automobile Industry." Free Essay Examples - WePapers.com. Retrieved December 09, 2022. (https://www.wepapers.com/samples/good-example-of-essay-on-effect-of-tax-provisions-on-us-automobile-industry/).
"Good Example Of Essay On Effect Of Tax Provisions On US Automobile Industry," Free Essay Examples - WePapers.com, 12-Nov-2020. [Online]. Available: https://www.wepapers.com/samples/good-example-of-essay-on-effect-of-tax-provisions-on-us-automobile-industry/. [Accessed: 09-Dec-2022].
Good Example Of Essay On Effect Of Tax Provisions On US Automobile Industry. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/good-example-of-essay-on-effect-of-tax-provisions-on-us-automobile-industry/. Published Nov 12, 2020. Accessed December 09, 2022.
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