Auto Dealers: Border Adjustment Tax Will Hurt Dealers and Customers

Press Releases 05/23/17

For Immediate Release
May 23, 2017 

Contact:  Hannah Oliver
OliverH@aiada.org
(703) 519-7800

Auto Dealers: Border Adjustment Tax Will Hurt Dealers and Customers
AIADA Responds to House Ways and Means Hearing on Capitol Hill

Alexandria, VA (May 23, 2017) – America’s 9,600 international nameplate automobile dealers today reinforced their opposition to a border adjustment tax as the House Ways and Means Committee held a hearing on the proposal. The American International Automobile Dealers Association (AIADA)—whose members employ 577,000 Americans and accounted for 59 percent of all U.S. retail vehicle sales last year—today issued the following statement from President Cody Lusk:

“This hearing raised concerns about the impact that the border adjustment tax will have on middle class American consumers, who will be forced to foot the bill for a corporate tax cut. While America’s international nameplate dealers fully support federal tax reform efforts, they are deeply opposed to the border adjustment tax provision, which will drive up the cost of every vehicle on their lots and ultimately impact the price customers pay for reliable, safe transportation by an average of $2,000 per vehicle. We continue to urge Congress to abandon the border adjustment tax in favor of pro-growth policies that will help, rather than hinder American businesses and the customers they serve,” said Lusk.  

Today’s hearing is part of plans by the House of Representatives to take up tax reform in the coming weeks. AIADA has advocated against a border adjustment tax due to its impact on dealers and consumers. A recent study by the Center for Automotive Research (CAR) estimates that U.S. light vehicles would be immediately impacted by 5.6 percent following implementation of a border adjustment tax, resulting in a $34.6 billion overall cost to U.S. consumers. For more information on how a border adjustment tax would impact America’s international nameplate dealers, visit www.aiada.org/bat.

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About AIADA: Established in 1970, AIADA is the only association whose sole purpose is to represent America’s 9,600 international nameplate automobile franchises that sell and service the following brands: Acura, Aston Martin, Audi, Bentley, BMW, Ferrari, Genesis, Honda, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Lexus, Maserati, Maybach, Mazda, Mercedes, MINI, Mitsubishi, Nissan, Porsche, Rolls Royce, Subaru, Toyota, Volkswagen, and Volvo. These retailers have a positive economic impact both nationally and in the local communities they serve, providing more than 570,000 American jobs. Visit AIADA online at www.aiada.org

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