Cheney Praises Dealers as a Powerhouse of the U.S. Economy

Cheney Praises Dealers as a “Powerhouse of the U.S. Economy”

Top Legislative Agenda[/I]

To warm applause, Vice President Dick Cheney called dealers –one of the powerhouses of the U.S. economy generating some 20 percent of all retail sales in the country. America would not be the same without the franchised new-car and -truck dealers,” he said in his keynote address to NADA’s Washington Conference on September 19, which set an attendance record for the highest-ranking government official ever to participate in the conference.

Cheney noted that the White House was about a five-minute walk from the Capital Hilton hotel where he delivered his speech. –But in honor of America’s auto dealers, we drove this morning. You’re part of the reason America remains among the strongest economies in the world,” he said.

Cheney also praised dealers for their community service and recognized the 100-year anniversary of the auto franchise system.But his biggest applause came when he reiterated the Bush Administration’s call for permanent repeal of the death tax.

–The death tax penalizes savings and risk-taking and reduces capital formation in the economy,” said Cheney. –This summer, the House passed further relief from this unfair tax, so we’re moving in the right direction, but the Senate needs to act. And President Bush looks forward to the day that he can sign into law the permanent repeal of the federal death tax.”

Cheneyês wide-ranging comments highlighted a conference that also featured addresses by key congressional members, political analysts and NADA executives. That afternoon, new car dealers and state and metro dealer association executives from across the country attending the conference got the opportunity to discuss NADAês top legislative priorities (see page 3) with their legislators on Capitol Hill.

On worldly matters, the vice president borrowed a Cold War phrase from Harry Truman to describe the global war on terror as a “war of nerves.” Cheney said that the hopes of the civilized world depend on a U.S. victory, and –we are not going to let down our guard.” He strongly defended the administration’s warrantless wiretapping and detainee programs, and said he hoped a federal judge’s recent ruling that rejected the administration’s plea to throw out a lawsuit over the wiretapping program –will be reversed on appeal.”

Cheney said the U.S. economy was –firing on all cylinders,” which he credited to the Bush tax cuts, and he urged Congress to finish work on making them permanent.

Similar comments were made by House Majority Leader John Boehner (R-Ohio) and Sen. Mel Martinez (R-Fla.), who emphasized the strength of the national economy and the role of small businesses. Both have cast their votes for permanent repeal of the death tax, which they deemed –unfair” to family owned businesses and their employees. Martinez also offered his support for the NADA-backed Total Loss Vehicle Data bill (S. 3707) and small business health plan legislation.

Sen. Mark Pryer (D-Ark.) stressed the growing annual deficit and eight trillion dollar national debt and said, –We have to get our fiscal house in order.” Thus, he could not support total repeal of the estate tax. A more likely out come, said Pryer, would be bi-partisan compromise legislation that would reduce the tax to 35 percent and up the exemption to $5 million for individuals and $10 million for married couples.

In his typically entertaining and informative fashion, political analyst Charlie Cook said the upcoming November elections, based on recent polls, should be –less worse” than predicted for RepublicansĖbad, but not a tsunami,” he added. He did not believe Democrats would win the six seats needed to take over the Senate –three to five, maybe,” he said. Democrats have a better shot in the house, where he said 15 Republican seats are in jeopardy of changing hands.

Either way, with very narrow majorities and a lame duck president, Cook predicted that legislatively –ainêt nothing happening” over the next couple of years.

The final speaker for the general session was colorful political consultant James Carville, and the –Raginê Cajun” didnêt disappoint, keeping the hall rocking with laughter with his down home, self-effacing jokes and stories. On a more serious level, Carvel said the 2008 presidential election would be marked by –big, unruly fields in both parties,” with four to six Republican candidates and six to nine Democrats and the –looming” potential of a third party. He called it –the seeds of a category 5 perfect storm.”

Loaded with information and inspiration, dealers then headed for the Hill.