After decades of watching good jobs for American middle class workers migrate overseas to lesser paid workers, and U.S. manufacturing jobs wither on the vine, there is some encouraging news.
August auto sales numbers revealed a problem last month that Ford, General Motors and Chrysler once would have begged for — not enough cars to sell. That’s right, it seems the American auto industry is back!
All three automakers posted double-digit gains in sales last month and they reported tight inventories on some models. Ford actually hired 1,400 new workers at its Flat Rock, Mich., assembly plant to build more Fusions.
A second reason to believe there may be light at the end of the tunnel is there is a bi-partisan duo in Washington, D.C., currently crafting proposals to “scrub the tax code of clutter and lower tax rates.
Democratic Sen. Max Baucus, chairman of the Senate Finance Committee and Republican Rep. Dave Camp, head of the House Ways and Means, are expected to introduce proposals to overhaul the U.S. tax system.
They are considering trimming numerous tax deductions and other breaks to offset the cost of cutting the top corporate and individual rates to as low as 25 percent, say aides and others. The corporate rate now tops out at 35 percent, while the highest individual rate is about 40 percent.
The tax code has not been completely cleaned up since 1986 when a politically divided Congress forged a deal with Republican President Ronald Reagan.
There will likely be much resistance to their proposals, but at a minimum, it is a step in the right direction in addressing the great divide between the have’s and have not’s in our nation. The plans could be introduced as early as this month. We will keep you posted.