ALEXANDRIA , Va. — 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 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,” read the statement. “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," Lusk added.
Today's hearing is part of plans by the House of Representatives to take up tax reform in the coming weeks. The 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% following implementation of a border adjustment tax, resulting in a $34.6 billion overall cost to U.S. consumers.
Originally posted on F&I and Showroom