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Missouri’s state House passed legislation last week that waived the state’s sales tax on vehicles built within its borders. Supporters hope the tax break will spurn residents to purchase more locally-assembled vehicles, ultimately encouraging automakers to build even more local facilities. Daimler-Chrysler's Chrysler Group, Ford Motor Company and General Motors already have plants in the "Show Me" state.
"This waiver would help car manufacturers and auto workers," said Rep. Michael Spreng. "Job retention and job creation is what this is all about." Ford’s St. Louis Assembly plant, which Ford plans to close, is in Spreng’s district.

Analysis of this first-of-its-kind legislation and its impact can be found at the link. While the legislation has its proponents, it remains unclear whether the move will hold any sway with manufacturers, or whether it will simply serve consumers. As Rep. Ed Robb (who opposed the waiver) said, "This is not going to cause any motor vehicle manufacturer to stay in Missouri... It just doesn't have a possibility of making a difference."

[Source: Detroit News]

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    • 1 Second Ago
      • 9 Years Ago
      Not only do I buy vehicles, but I help build them. I'm an engineer in the automotive industry, so it is all about me.

      If we stop importing vehicles, everyone else will stop importing our vehicles.
      • 9 Years Ago
      It's wonderful to see the local government doing what the Federal could not do: Protect the U.S. car manufacturers by giving them a lead with our tax dollars. Who cares about the non-weapons of mass destruction in Iraq? There's a virtual war going on in the U.S. The government funded Asian automakers vs. the U.S. auto companies. Where's my tax dollar being spent to defend my neighbor who works hard with integrity and doesn't have job security? We don't have Federal politicians with the integrity to advocate for U.S. jobs, and, it's great to see a State go with a radical idea. Cheers, Missouri!
      • 9 Years Ago
      Kudos to Ford's lobbyist responsible for that one.

      That 8% you just saved in taxes on your Ford Escape won't make up for the extra depreciation lost on the car just looking at it in the showroom.
      • 9 Years Ago
      Jimbo - "Impose a 100% tax on all imported vehicles."

      What would this do:
      1) Hurt GM and Ford. They import many models from factories outside the US
      2) Hurt the consumer. Exporters to the US would just stop sending models, lowering our choices. This would also eliminate GM and Fords competition and their need to build a better car.

      A free market sounds better to me.
      • 9 Years Ago
      This really wouldn't have much of an effect here in South Carolina. All vehicles have a $300 sales tax limit; even the home-built Bimmers.
      • 9 Years Ago
      This one will end up in court. It is probably unconstitutional because it is essentially a tax on goods from other states and that is a big no no.
      • 9 Years Ago
      It's better than giving tax breaks to worthless hybrids and doctors SUVs.
      • 9 Years Ago

      You forget one basic point. You think it's all about YOU and what this provides for YOU. There are other Americans trying to make a descent living. What do you do for a living? I'd like to see how your pay compares to the same job in other countries. Right now the focus is on the Engineers, Designers and Factoryworkers who's jobs are being devalued because you think YOU deserve the greatest choices of vehicles on earth. Your turn is coming also. People who think like you are lowering the standard of living for all Americans. You may have a better car for now. But your life, the life of your children and grandchildren will be greatly comprimised because greedy people like yourself.
      • 9 Years Ago
      I am pretty sure that a good argument can be made against this based on constitutional law. Why don't these idiot politicians think before wasting tax dollars on bullshit laws that will not stand up in a court case??
      • 9 Years Ago
      Tax laws should be written to provide money in the fairest way from the broadest base and at the lowest marginal tax rates to run the government.

      Tax laws should NOT be written for the purpose of social engineering.

      So called "tax breaks" pander to special interests instead of considering largest, meaningful special interest group of all: TAXPAYERS!
      • 9 Years Ago
      It's about time...Now for the Federal Government to do the same. Infact, I think we should do what Japan, China and South Korea do. Impose a 100% tax on all imported vehicles. Maybe then that playing field will be a little more level or at least closer to horizontal than vertical.