Auto Dealers Ask Congress to Reconsider Border Adjustment Tax

Auto Dealers Ask Congress to Reconsider Border Adjustment Tax

International Nameplate Dealers Sign on to Letter Questioning New Provision

The American International Auto Dealers Association (AIADA) today joined the Border Adjustability Tax Coalition in sending a letter to Congressman Kevin Brady (R-TX), Chairman of the House Ways and Means committee. While expressing support for the pro-growth comprehensive tax reform found in the Better Way Tax Reform proposal, the letter asks Chairman Brady to reconsider the proposed inclusion of a border adjustment provision in the final legislation.

A border adjustment mechanism would place a tax on any goods and services imported into the United States, including autos and auto parts. The potential repercussions, including radically more expensive vehicles and vehicle parts, could be devastating for international auto nameplate dealers, employees, and consumers in communities across the country.

The letter read, in part:

“We, the undersigned associations, representing small and large businesses, tens of millions of U.S. workers, and hundreds of millions of consumers, are writing to express our strong interest in consideration of comprehensive tax reform that will increase investment in the United States, raise real wages, and increase consumer spending.

However, we do have concerns with the “border adjustability tax” provision included in the House tax reform blueprint. Companies that rely on global supply chains would face huge business challenges caused by increased taxes and increased cost of goods, which would in turn likely result in reductions in employment, reduced capital investments and higher prices for consumers.”

As the issue of tax reform moves forward, AIADA will continue to work in Washington, D.C., to represent America’s 9,500 international nameplate dealers whose livelihoods and 570,000 employees rely upon sensible trade and tax policies that work for America.