NADA issues Dealer Priorities list for informing Congress this summer

NADA issues Dealer Priorities list for informing Congress this summer

Anticipating a Congressional recess that now might not happen, as the deadline for lifting the U.S. debt ceiling nears, NADA has issued its Dealer Priorities list for dealers to reference when communicating with their elected officials over the summer.

NADA says it is especially important to seek out members of Congress to discuss two major issues that will come to the forefront as early as July:

1. Fuel Economy. The Obama administration is moving towards a 56 mpg fuel economy standard likely to be rolled out in September for 2017-2025 model year vehicles. Members of Congress need to think about these realities.

An additional five percent fuel economy increase every year for eight years on top of annual increases of four percent for the next five years (model years 2012-2016) will make it difficult for manufacturers to make vehicles consumers want and can afford.

EPA and California regulators are trying to bypass Congress and set their own fuel economy standards for MY 2017-2025. Congress must reassert its authority to regulate fuel economy through the National Highway Traffic Safety Administration (NHTSA), which must consider jobs and consumer demand.

New fuel economy mandates do not need to be issued for three more years, especially since the auto industry is just starting to absorb the cost of last years $51.7 billion rule. Fuel economy rules are already set through 2016 and standards for 2017 and later do not need to be issued until 2015.

2. LIFO Repeal. As part of debt ceiling deficit reduction negotiations, the Obama administration has proposed LIFO repeal as a revenue increase. The tight deadline of August 2 and need for deficit reduction make this proposal a serious threat. NADA is part of a business coalition and has been meeting with the tax writing committees to express opposition to this provision. Congress needs to hear why this is a bad idea.

LIFO repeal is unwise in a fragile recovery, as it would create a massive tax increase for many automobile dealers and other American small businesses.

LIFO is a legitimate accounting method that has been in place for over 60 years. Taxpayers may not change between LIFO and FIFO without approval of the Internal Revenue Service.

Repeal of LIFO is tantamount to the government changing the rules in the middle of the game, which will hurt Americas car dealers and their employees.

NADA also is looking among its dealer membership for Congressional Partners for every member of Congress, such that dealers with good connections with Congressmen can register with NADA and be available on an as needed basis. Contact Joshua Heit at jheit@nada.org.