Auto Service World
News   March 8, 2017   by Adam Malik

Auto dealers going to D.C. to oppose tax

Capitol Hill

Members of the American International Automobile Dealers Association will be at Capitol Hill on March 9 to oppose a potential border adjustment tax that many have claimed will hurt the automotive industry.

The group, which represents 9,500 international nameplate dealership franchises in the U.S., will host meetings with lawmakers in Washington to voice their opposition to the tax, it said in a media release.

The issue is over U.S. President Donald Trump’s plan to impose a tax on goods imported to the country. While Trump first said import would face a 35 per cent tax, recent reports indicate that it may be closer to 20 per cent. Still, the AIADA said, “because no vehicle sold in the United States contains exclusively domestic content, the tax will drive up the cost of every single vehicle bought by American consumers by an average of $2,000, reduce the annual auto sales rate by 1.2 million vehicles, and put 42 million American retail jobs at risk.”

In all, the AIADA says than 200 international nameplate auto dealers, representing 38 states, more than 1,300 franchises and 70,000 employees will be in attendance.

Recently, the Motor & Equipment Manufacturers Association issued a statement in which they, too, oppose a border adjustment tax. The association warned that if a tax were to be implemented, it “could disrupt the integrated supply chain for many companies and cause a ripple effect throughout the U.S. economy.”

The Automotive Aftermarket Suppliers Association, a division of MEMA, saw a 19 per cent jump in the number of people employed in the industry since 2012. While unclear how many, the MEMA said aftermarket jobs could be at risk if a border adjustment tax is implemented.

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