Reuther and The 1964 Chicken Tax
Reuther played a role in a historic episode during the early 1960s, known as the Chicken War. France and West Germany had placed tariffs on imports of U.S. chicken. Diplomacy failed and in January 1964, two months after taking office, President Johnson imposed a 25% tax (almost 10 times the average U.S. tariff) on potato starch, dextrin, brandy, and light trucks. Officially, the tax targeted items imported from Europe as approximating the value of lost American chicken sales to Europe.
In retrospect, audio tapes from the Johnson White House, revealed a quid pro quo unrelated to chicken. In January 1964, President Johnson attempted to persuade Reuther not to initiate a strike just prior to the 1964 election and to support the president's civil rights platform. Reuther in turn wanted Johnson to respond to Volkswagen's increased shipments to the United States.
The Chicken Tax directly curtailed importation of German-built Volkswagen Type 2 vans in configurations that qualified them as light trucks — that is, commercial vans and pickups. In 1964 U.S. imports of "automobile trucks" from West Germany declined to a value of $5.7 million—about one-third the value imported in the previous year. Soon after, Volkswagen cargo vans and pickup trucks, the intended targets, "practically disappeared from the U.S. market." As of 2009, the Chicken tax remains in effect.
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Famous quotes containing the words chicken and/or tax:
“Sometimes I lifted a chicken that warn’t roosting comfortable, and took him along. Pap always said, take a chicken when you get a chance, because if you don’t want him yourself you can easy find somebody that does, and a good deed ain’t ever forgot. I never see papa when he didn’t want the chicken himself, but that is what he used to say, anyway.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.”
—Alexis de Tocqueville (1805–1859)