Comment 89422

By LOL all over again (anonymous) | Posted June 08, 2013 at 19:57:55

The net revenue from the car industry is huge and is what keeps the government coffers full. The taxes start with the raw materials being extracted from the ground and just keep going and going like the energizer bunny. Every step of the way there are taxes. Taxes on the companies profits. Taxes on the wages of all the workers. There are so many steps and so many parts that I don't know how anyone can get definitive answer. Just look at Hamilton. Dofasco (or whatever it has morphed into) produces many tons of steel for the auto industry. This is the most expensive steel they sell. While Dofasco's number of employees has shrunk there are still a lot. Not only are there lots of jobs they are very well paying jobs. How many thousands does the federal and provincial governments get in income tax? How many thousands does the city get from the homes that these well paid employees own? I know these homes are not downtown like they used to be but rather are mostly in the burbs, Ancaster, Stoney Creek, Dundas and so on. That may count less in your eyes but the city relies on that money. Every level of government relies on that money. This is just an example of one stage in the middle of the process. There were miners getting the ore out of the ground. Again another high paying job that pays lots of taxes. Then the ore needs to be shipped to Hamilton. Taxes on the ship workers and the shipping company. On and on it goes. That is why the government will do anything to attract the auto industry. Taxes taxes and more taxes. Real taxes on high paying jobs. Compare that to the taxes paid by waiters and busboys in all the coffee houses and restaurants. That is why governments will not do anything to attract these low paying jobs that Hamilton is starting to fill up on.

Without the car industry the government would be broke in a heartbeat.

Let the downvoting begin.

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