Quote (Surfpunk @ Nov 3 2018 01:00pm)
How can a tax cut benefit only be realized in a single year? Do taxes go back up to the original pre-tax cut rate in 2018 or after?
Quote
Analysts estimate the levies will add about $300 to the price of vehicles bought in U.S. showrooms. That is about enough to cover some options offered by car makers.
Let's say the avg vehicle is 25,000. 300/25,000=1.2% Increase from tariff based on steel prices going up...which would most likely be passed onto the consumer regardless.
Meanwhile, they are saving ~20% in tax cuts, their new tax rate is around 15%. I'm not really sure how Ford isn't going to figure something out when the 300 dollars they can easily pass onto the consumer, meanwhile paying 15% on profits vs 35% is a huge benefit.
This post was edited by ofthevoid on Nov 3 2018 03:21pm