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IPFS News Link • TAXES: Federal

The Chicken Tax

• Lewrockwell.com

Yes, yes, there are the big ones – mostly made by the Big Three. But how come the others – smaller brands, smaller trucks – have been so reticent about cashing in on this most lucrative (highest profit margin per vehicle) segment?

Could it be the "chicken tax"?

Never heard of it?

It's the tax – the tariff – that makes it much more expensive to bring a truck to market in the U.S. that was not made in the U.S.

It was signed into law back in 1963 by Lyndon Johnson as a retaliatory measure directed at France and West Germany, which had imposed tariffs of their own on the importation of U.S. chicken. Hence the name. The measure hit back with tariffs on potato starch, brandy and light trucks imported to the United States, with the object of making all of them more expensive to import.


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