SHOWROOM
August/September Vol. 15, No. 6
Wood's testimony June 2 before the Subcommittee on Tax, Finance and Exports, a branch of the House Small Business Committee, was the direct result of a congressional visit to New Jersey Rep. Mike Pappas' office during AIADA's 21st annual Automotive Congress in May.
The congressional hearing in Montgomery Township was an opportunity for central New Jersey residents, many of whom are small business owners or farmers, to express their concerns about the estate tax. Wood, the only non-farmer to testify, told legislators that the federal tax could be devastating to small businesses like hers.
How Repeal Helps Dealers
For example, Wood, a mother of three, told
of her concern that her children may not have an opportunity to follow in her
footsteps. "Unless I spend thousands of dollars in attorneys' fees and hundreds
of hours of time to ensure proper estate-tax planning, they may not have that
opportunity," said Wood. "Not only would I like to preserve my business for my
children, I also feel a commitment to the 45 families that are a part of my
business. It is unfair to them and their livelihoods that a federal tax could
put them out of a job."
She said franchise laws require auto dealers to maintain facilities, inventory and equipment that meet specific manufacturer standards. As a result, dealers could wind up with an exceptionally high gross value when estate taxes are calculated.
"For those who inherit a dealership-which in all likelihood would be taxed at the maximum [rate of] 55 percent-there are few assets of significant value that can be sold without adversely impacting the dealership," Wood testified.
She said the estate tax also would discourage people from starting new small businesses. "I believe the spirit shown by dealers and other small business entrepreneurs should be encouraged, not penalized."
An Ideal Candidate
Pappas asked Wood to testify when the two met
during the annual Automotive Congress in May, when auto dealers gathered to
lobby before Congress. Pappas and Rep. Donald Manzullo of Illinois are steering
a subcommittee studying possible repeal of the estate tax. Although Wood had
never testified before Congress, her experience as a dealer and small
businessperson made her an ideal candidate.
"I think one of the most rewarding parts about this has been the appreciation expressed by so many of my fellow dealers," Wood says. "It is so important that we all work together in situations like this, and it's nice to see that so many of us recognize this as a group effort-not just one person's battle for fair legislation."
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