AIADA SUPPORTS ESTATE TAX RELIEF IN MINIMUM WAGE BILL As legislators scramble to wrap up the first session of the 106th Congress by Veterans Day, a proposal to include estate tax relief in a minimum wage bill is being floated on Capitol Hill. This is significant because the minimum wage bill offers virtually the only opportunity for tax relief this year. AIADA has lobbied vigorously for estate tax relief on behalf of its members. Last month AIADA President Walter Huizenga pledged "to pursue all legislative opportunities to kill the death tax." Family-owned automobile dealerships are hit hard by the tax, which has rates as high as 55 percent. While the details of the proposal are not yet known, a draft version developed by Rep. Rick Lazio (R-NY) and a bipartisan group of Representatives would include a $1 an hour wage hike spread out over three years and about $35 billion in tax cuts targeted towards small businesses, including estate tax relief. The tax reductions are designed to make passage of a federal minimum wage increase more palatable to Republicans. "This approach provides relief to the businesses that are likely to pay the wage hike," Lazio said. "It's about $2 of tax relief for every dollar it's costing business." The official proposal is expected to be unveiled soon. A GOP aide predicted that the bill could reach the House floor as early as the week of October 18. The White House had no immediate response to the minimum wage/tax bill being drafted by Rep. Lazio. However, the White House has said that any tax bill must be fully paid for or face a certain veto. President Clinton vetoed the GOP's $792 billion tax bill last month, which included an AIADA-supported provision to eliminate the estate tax. Other than a limited measure renewing expiring tax provisions, a Republican compromise with Clinton on tax cuts will probably not happen this year. Instead, the issue will likely remain a political football when Congress reconvenes in 2000. "AIADA supports efforts to include estate tax relief in the minimum wage bill. This bill represents our best chance to achieve estate tax relief this year. But if necessary, AIADA will continue to fight into the millennium until the death tax is killed," said AIADA's Huizenga. For more information on the estate tax or any government relations issue, call AIADA at 1-800-GO-AIADA.

OCTOBER 1999 All the latest news and information for and about the international automobile industry in America. Join us to celebrate 30 years of fighting for free trade and an open automotive market in the U.S. Register today for AIADA's 30th Annual Meeting & Lunch, Jan. 24, 2000 in Orlando. AIADA 99 Canal Center Plaza Suite 500 Alexandria, VA 22314 703-519-7800 703-519-7810 FAX GOAIADA@aiada.org

Year-to-date sales by Ford, General Motors and DaimlerChrysler in Japan are down 17 percent, according to a report by the Japan Automobile Importers Association this month. Although both the U.S. and Japan agree the decline is the result of an overall downturn in that country's economy, U.S. officials believe Japan could be doing more to improve market access. Through July, the U.S. is on track to set a record $38 billion automobile and auto parts trade deficit with Japan.

The two sides will meet again in Washington in November and the U.S. will continue to press for action, according to officials.

For nomination materials and information, call Kimberlee Berry at AIADA, 1-800-GO-AIADA. Nominations are due by Nov. 26, 1999.

AIADA wants to eliminate the chicken tax because it represents a significant trade barrier to pickup truck imports and consumers would benefit from greater competition in the light truck segment. AIADA believes automakers should be able to import a vehicle or build it in the U.S. based on a business decision, and not be restricted by a punitive 25 percent import tax. Although pickup trucks represent a growing and highly lucrative portion of the American vehicle market, there are currently no pickup trucks being imported to the United States.

AIADA plans are underway to combine grassroots dealer involvement, industry outreach, media education and government relations to advance the chicken tax issue at the WTO meeting.

In an effort to maximize our efforts in Seattle, AIADA has joined the U.S. Alliance for Trade Expansion (US Trade), a new and fast-growing group of some of America's largest companies and trade associations dedicated to supporting free trade at the WTO meeting. Through US Trade, AIADA's delegation will seek to educate policy makers and the public about the benefits of free trade and an open automotive market in the U.S. A key part of that message is the elimination of the 25 percent truck tariff.