DEATH TAX REPEAL PASSES HOUSE AIADA-Backed Bill ‘A Significant Step Forward' By a vote of 279-136, the AIADA-backed Death Tax Elimination Act (H.R. 8), was passed by the House on June 9. This represents a victory for AIADA's dealer members and the most significant advance in death tax relief ever, as both Republicans and Democrats voted for the bill in a stand-alone vote. "An important threshold has been reached where Congress is now willing to seriously address death tax repeal. Our members stand to save hundreds of millions in taxes and costs associated with compliance," said AIADA President Walter Huizenga. AIADA supports H.R. 8 because estate/death taxes can devastate family-owned businesses like automobile dealerships. AIADA members played a key role is securing support for the bill by urging members of Congress to "kill the death tax now" when they canvassed Capitol Hill on May 23 during the Automotive Congress. AIADA Chairman Barbara Vidmar also spoke out in support of H.R. 8 at a Death Tax Summit press conference covered by the national media on May 23 on Capitol Hill. Standing shoulder to shoulder with Rep. Jennifer Dunn (R-WA) who championed death tax repeal in the House, Vidmar was one of three businesspeople joined by a bipartisan group of members of Congress supporting H.R. 8. Flanked by her children Shawn and Derek, Vidmar spoke of the threat the death tax poses to her ability to pass her business on to the third generation of Vidmars, and called for an end to the death tax. In addition to AIADA's high-profile role at the Death Tax Summit, the association supported a national ad campaign running in Capitol Hill newspapers and key districts calling for death tax repeal. AIADA also activated its politically-connected grassroots force to keep the pressure on, urging members of Congress to support H.R. 8. Every member of the House of Representatives received a letter from AIADA this week calling for support of the bill and outlining the association's position on the issue. "Our thanks to each AIADA member who came to Washington and urged their members of Congress to support this bill," said AIADA's Vidmar. "There's no question we were heard on this issue." The battle for death tax repeal now shifts to the Senate. Consideration of the issue is threatened by time constraints, as the clock winds down on the number of legislative days left in this session. Even with Senate passage, President Clinton has threatened to veto the legislation. But the fight will continue. According to Vidmar, "We will continue to lead the fight on this issue on behalf of our members until the death tax is gone."

JUNE 2000 All the latest news and information for and about the international automobile industry in America. "Death tax relief for family-owned dealerships is a priority issue for AIADA and this vote represents a significant step forward. We will continue to lead the fight on this issue until the death tax is gone." -- AIADA Chairman Barbara Vidmar AIADA 99 Canal Center Plaza Suite 500 Alexandria, VA 22314 703-519-7800 703-519-7810 FAX GOAIADA@aiada.org

AIADA opposes an increase in CAFE, and AIADA members lobbied the issue during the Automotive Congress May 23. An increase in CAFE could deprive consumers of vehicles that have historically low gas mileage -- pickups, minivans and sport-utility vehicles, potentially eliminating from the market some of the most popular vehicles on the road. The auto industry was victorious last month as the House passed the 2001 Department of Transportation appropriations bill with a provision to freeze standards at their current level.

Confrontations are expected between opposing parties, but recent exchanges on the floor of the senate between Senate Majority Leader Trent Lott (R-MS) and Minority Leader Thomas Daschle (D-SD) have been remarkably uncivil. "The way the Senate is being run is wrong," said Daschle in one recent nasty exchange, claiming that Lott is resorting to "a Senate version of dictatorship that I think is unacceptable." Lott responded by saying he felt "personally maligned" and vowed "not to be threatened or intimidated by the minority."

The resulting stalemate threatens to dim the odds of the Senate passing much legislation this election year other than funding bills. "We will do appropriations bills and that's it," says Sen. Larry Craig (R-ID). Referring to the Senate as being in "complete disarray," Sen. Chuck Hagel (R-NE) said "some of us up here are a little tired of this nonsense."