states that are considered part of the Rust Belt range from 12.1 in Illinois, to 17.8 in West Virginia as of 2018. The people who took notice were corporate accountants. As the Rust Belt states become more challenging and the Sun Belt states more influential, the Democrats’ ability to compete for the White House and control of Congress through the 2020s may. Located at the heart of the Rust Belt, Pennsylvania is a traditional blue-collar state that is gradually turning Republican. The exodus of high-paying, blue-collar jobs in America’s Rust Belt has led to a high incidence of poverty. Faked out by the ending baby boom, states in the 1960s and 1970s said they needed ever more money for schools.
#Rust belt state series#
In the following series of columns, I shall offer vignettes and stories about how and why the future Rust Belt states opted for an income tax in these years, 1961-76. United States Steel razed the Duquesne Works in the 1980s. Then as soon as the investment pays out, best to scrap whole endeavor, pursued originally in a lower tax environment, and sell off what one can piecemeal. Such a new cost will prompt a company to squeeze as much productivity out of the recent capital investment, made before the new income tax, with little in the way of capital upkeep let alone further improvement (and hiring). Steel with another 4 percent in 1971 shortly after it had laid out big capital money-the implication for real profit margins, and business planning, of this sort of development makes one shudder. There are businesses with astronomical profit margins (Apple Computer for example), and such companies can locate themselves in a place with a high cost structure, such as California, and still make a beautiful dollar.ĭinging U.S. In groceries a margin might be half that. In certain businesses, 4 percent can be a profit margin-in particular when expensive capital assets recently purchased have to be paid off. Honda CR-V Frame Rust Recall Affects Salt-Belt States Honda recalls 564,000 CR-V SUVs because the frames can corrode and rust in salt-belt states. The company’s accountants weighed the new wage requirements against the deductibility of wages from the corporate tax (of 48 percent) and stared at something like a 4 percent permanent increase in labor costs. The labor needed to make that happen got more expensive thanks to state action. Steel made huge capital investments in the 1960s that needed probably decades to pay out.
0 kommentar(er)
