ESTATE TAX ELIMINATION PASSES HOUSE WAYS & MEANS COMMITTEE In a significant first step, phase out and elimination of the estate (death) tax was included in the massive GOP tax bill passed by the House Ways and Means Committee on July 14. The phase out plan closely mirrors a bill introduced by Reps. Jennifer Dunn (R-WA) and John Tanner (D-TN) that AIADA has vigorously supported. Elimination of the estate tax is one of AIADA's top legislative priorities. The death tax, with rates as high as 55 percent, hits family-owned dealerships hard. Under the proposed tax cut bill, the estate tax would be gradually phased out over ten years. Additional cuts include a 10 percent across the board reduction in personal income tax rates, and reductions in capital gains and the marriage penalty. Prior to the July 4 holiday, AIADA issued an urgent legislative bulletin urging dealers to contact their Members of Congress on the estate tax issue. "Our thanks to those dealers who responded to our call for grassroots action at this critical time. We've weighed in with both the House and the Senate. From our success in this crucial first step, it is clear they are listening," says AIADA President Walter E. Huizenga. The GOP tax proposal, which at $864 billion is the largest tax cut in 20 years, passed along party lines 23-13 following two days of rancorous debate. There are still numerous hurdles ahead. The bill next moves to the full House for a vote, expected by the end of the month. Senate Finance Committee Chairman Bill Roth (R-DE) will release his tax plan for consideration in the next few days, followed by committee review and then a vote on the Senate floor. Meanwhile, Senate Democrats have unveiled a $300 billion tax cut plan that is more modest than the GOP proposals, but could be the basis for a bipartisan compromise with the Administration this fall. President Clinton and Democrats in Congress want to limit any tax cut to $250 billion over 10 years. Although it is still unclear how large a tax cut will eventually be passed, AIADA continues to work closely with leaders on both sides of the aisle to ensure that estate tax reductions will be included in any tax package. For more information on the estate tax or any legislative issue, call AIADA's government relations office at 1-800-GO-AIADA.

JULY 1999 All the latest news and information for and about the international automobile industry in America. "We've weighed in with both the House and the Senate (urging estate tax relief). From our success in this crucial first step, it is clear they are listening." -- AIADA President Walter E. Huizenga AIADA 99 Canal Center Plaza Suite 500 Alexandria, VA 22314 703-519-7800 703-519-7810 FAX GOAIADA@aiada.org

"In a two-hour event, dealers had the opportunity to meet and greet Senator Lugar and learn the latest issues both at the federal and state level that could impact their business," said AIADA President Walter Huizenga. "The Dealer Forums continue to be one of our most successful programs."

At the meeting, Huizenga briefed dealers on the latest legislative action in Washington, including AIADA efforts to eliminate the estate tax and the 25 percent truck tariff (chicken tax). Tim Dowling, executive vice president of the Indianapolis Automobile Trade Association and the Automobile Dealers Association of Indiana, also advised dealers on issues of concern within the state.

Political involvement was the underlying theme of the event. Dealers took part in a fun, 30-second quiz that tested their knowledge of the industry. The purpose was to demonstrate that there is a lot to know about the retail automotive business. If dealers themselves don't have all the answers, we can't expect that our legislators know the answers either. All dealers were urged to take the time to become politically active. "Educating your Members of Congress about your business and being involved is vital to protecting the long-term success of your dealership," Huizenga said. For information on upcoming Dealer Forums, call Dan Barson at (800) GO-AIADA.

"We want flexibility for the manufacturers to be able to respond to the demands of American consumers. It should be their choice, their business decision, whether to import or build here to meet market needs, not a decision based on a punitive tariff," said AIADA Chairman and multi-line dealer Joe O'Brien, Jr. of Peoria, Ill.

For more information on the chicken tax, one of AIADA's top issues in 1999, watch your mail for the June/July issue of AIADA's SHOWROOM magazine.

AIADA will assist you with coordinating the visit and provide you with tips to make the most of the experience for both you and your legislator. If you're interested, call Judy Ostronic, AIADA's grassroots program manager, at (800) GO-AIADA.