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

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JUNE LEGISLATIVE ISSUES BRIEFS

CAFE BATTLE MOVES TO THE SENATE

The battle of whether or not Corporate Average Fuel Economy (CAFE) standards will remain at their current levels moves to the Senate the week of June 12. Senators Slade Gorton (R-WA), Richard Bryan (D-NV) and Dianne Feinstein (D-CA) have said they will push to increase CAFE standards by offering an amendment on fuel economy when the fiscal 2001 transportation funding bill is taken up on the Senate floor. Although a Senate resolution supporting fuel economy increases failed in 1999, Gorton says the senators "are more determined than ever."

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.

HOUSE PANEL NIXES MEASURE TO QUIT WORLD TRADE ORGANIZATION

The House Ways and Means Committee this month resoundingly disapproved a resolution that called for the U.S. to withdraw from the World Trade Organization (WTO). The unanimous 35-0 vote signaled a strong endorsement for continued participation in the multi-lateral trade body. Congress can review U.S. participation in the WTO every five years and any member of Congress can introduce a resolution calling for withdrawal. AIADA supports U.S. participation in the WTO.

Senate Facing Continued Gridlock

Like sands through the hourglass, time is already starting to run out on this session of Congress. The number of days left in the legislative calendar is dwindling, along with hopes that some bills will even be considered. Meanwhile, the Senate has been in a state of gridlock, with partisan wrangling leading to a veritable work stoppage.

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."

Start Your Engines: Cleveland Dealer Forum June 30 at Grand Prix

Join AIADA for a meet-and-greet with Sen. Mike DeWine (R-OH) at 8:30 am on June 30 at the Cleveland Grand Prix! The latest in AIADA's "Meet Your Senator" Dealer Forum series, the event is NOT a fundraiser and is free of charge to all interested Cleveland-area dealers. The two-hour program will kick off with breakfast and remarks from the Senator followed by briefings on national, state and local issues. Qualifying and racing activities follow from 10:30 am-5:00 pm. To register or for more information, call AIADA.

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