I need your opinion. But I also need an amount with a reason why. Ford Motor Com
ID: 2491193 • Letter: I
Question
I need your opinion. But I also need an amount with a reason why.
Ford Motor Company is adding over 2,000 new jobs in their Claycomo Assembly Plant. The average wage will be $20 per hour. These wages would have a 6% Individual State Income Tax Rate per year. In addition, there would be a 1% state unemployment tax rate. The Ford plant is in Clay County where they pay $6,000,000 a year in corporate property taxes. New equipment would be added to the plant. This would raise the property taxes another $1,000,000 annually.
Now, every state and country in the U.S. wants these jobs. As the Missouri State Treasurer, how much are you going to give Ford to put those jobs here? How long of a commitment for those jobs would you consider?
Explanation / Answer
Fist calculate the amount that Ford is eligible to get:
Corporate property taxes per year = $6,000,000
Add: Additional property taxes = $1,000,000
Total property taxes payable each year = $7,000,000
This is the minimum amount that Ford will get from the Missouri state treasurer and even Ford company is providing jobs that means increasing the employment opportunities in the country so till Ford doesn’t hire or provide employment in US by increasing the number of employees other than US. So until the Ford company can expect to continue in business.