Of course income tax has a bearing on labor cost. If X is a decent living wage, the company has to spend X+taxes per employee.Byeman said:Huh? Income tax has no bearing on labor costs. Income tax is on the worker and not born by the companies and hence they do not pass it on.Hobbes said:That's not the cause of higher labor cost in the US. If health and retirement are funded by the government, they have to set taxes to finance these. A large proportion of these will be funded through income tax. You'll see that the income tax rate is much higher in Europe than in the US.
Wrong, income tax burden only has a bearing on recuiting employees. It is not factored in labor costs.Hobbes said:Of course income tax has a bearing on labor cost. If X is a decent living wage, the company has to spend X+taxes per employee.
I never said that. We are comparing labor costs born by the employer, which excludes income taxes paid by the employee.Hobbes said:What's the point of comparing labor cost between countries without accounting for taxes?
That is totally incorrect. Income tax doesn't cover healthcare or pensions as these are paid separately on top of the salary. So the actual labour cost to the company is salary + social fees which in my case (Sweden) are about 1/3 of the salary. So if I have a salary of $3000 my cost to the employer is $4000.Byeman said:Huh? Income tax has no bearing on labor costs. Income tax is on the worker and not born by the companies and hence they do not pass it on.
One word: sequestrationReaper said:What about the current status of the US aerospace industry? Are there enough orders, are people beeing hired?
Sequestration is topic No. 1 among the federal contractor community these days. But there may be more than just talk surrounding the prospect of deep federal budget cuts should Congress fail to arrive at a budget for fiscal 2013 before fiscal 2012 ends on Sept. 30.
I kind of remember they are (were?) involved in Optionally Piloted Vehicles, which they inherited from the former Aeromet.Reaper said:L3 is doing fixed wing aircraft? Maybe supporting to build them, but they are not a aircraft system integrator!
I think that depends on how you define prime contractor. The UH-72 entire power train, flight control and structural design come from Germany. AEC is, to me, an assembly line and completions centre. From discussions with their engineering department, they are a long ways from ever developing a new helicopter, or even doing major mods.Reaper said:Also I wonder if you could count American Eurocopter now as a prime contractor, after selling the UH-72.
Your description of that cartoon actually sounds a lot like the concept picture of British Airways' 3 deck megaliner passing by a much smaller plane from FLIGHT International in 1992. And here it is.During these consolidations, Air International ran a cartoon making light of the end result. It depicted a small aircraft with "British Aerospace" painted on the fuselage being passed on the taxiway by an enormous superjumbo painted with the name "McDohop Boheed". I'll try to post it if I can find it.