Just as impressive is the overall money that Americans pour into their four-wheeled transportation. CAR estimates that auto sales come in at $564 billion, and parts, repairs and other services add in another $173 billion. And those are the staggering numbers generated in an auto market of only 12 million units per year. So far, 2012 auto sales appear to be moving closer to 14 million units, which should help push the $735 billion total closer to the $1 trillion mark.
The income generated by cars and trucks is certainly significant, but a good portion of that income goes toward new roads. Of the $43 billion that ends up in federal coffers, $29 billion comes from fuel taxes. On the state level, two-thirds of the $91.5 billion comes from taxes on fuel. Still, that amounts to 10 percent of California's overall revenue and a knee-wobbling 23 percent of revenue in Oklahoma.
Auto jobs also contribute serious coin to Uncle Sam, with Michigan leading the way. Uncle Sam took in $2.2 billion from The Mitten State, followed by Ohio and California. Hit the jump to read the CAR press release.
"The automotive industry accounts for 13 percent of all state government tax revenues," said Kim Hill, director of the Sustainability and Economic Development Strategies group at CAR and the study's lead. "This analysis furthers our understanding of how the automotive sector has a substantial impact on the U.S. economy by contributing to the fiscal stability of state and federal governments. As economic conditions continue to improve, auto companies could see an increase in sales and employment that would generate additional state and federal tax revenues."
The study, produced by the Sustainability and Economic Development Strategies group at CAR, quantifies the financial support from the automotive sector that is provided to state and federal governments in the form of taxes and fees collected due to sales, employment, and business operations, as well as the use of the automobile, and highlights the breadth and depth of these revenue contributions. Beyond the obvious sales taxes generated when vehicles are purchased ($30 billion), government agencies collect taxes from a variety of sources. These sources include income taxes paid by employees working in the automotive sector ($15 billion); taxes and fees on fuels, registrations, and licenses paid by drivers ($89 billion); and corporate income taxes and licensing fees paid by automotive companies themselves ($750 million). The study also provides a detailed breakout of automotive tax revenues for each state in the nation.
The report was funded by The Alliance of Automobile Manufacturers and is available on CAR's website, www.cargroup.org.
The Center for Automotive Research's mission is to conduct research on significant issues related to the future direction of the global automotive industry, as well as organize and conduct forums of value to the automotive community. CAR performs numerous studies for federal, state and local governments, corporations, and foundations. The Sustainability and Economic Development Strategies group offers objective analysis and advice while encouraging collaboration between the automotive sector, academia, and communities, with the goal of long-term sustainability of both the industry and communities.