Investment tax credits to auto manufacturing


Problem: In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit's city council is considering passing a statute that would give investment tax credits to auto manufacturing. Effectively, this would reduce auto manufacturing costs of using capital and high tech equipment in their production processes. On the evening of the vote, local union officials voiced serious objections to this statute. Outline the basis of the argument most likely used by union officials. as a representative for one of the automakers, how would you counter the union officials argument?

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Taxation: Investment tax credits to auto manufacturing
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