NADA issues priority lobbying list at annual Washington Conference
The National Automobile Dealers Association (NADA ) held its annual Washington Conference here this week, bringing together NADA Board members and automobile dealer association leaders from around the country for a two-day information exchange and Capitol Hill lobbying effort on issues critical to the automotive retailing industry.
WANADA chairman George Doetsch, NADA director Tamara Darvish, association senior staff Gerard Murphy, John ODonnell and Jake Kelderman represented the organization at the event, which was headlined by a presentation from Speaker of the House, John Boehner (R-OH).
Rep. Boehner told the attendees that he saw some areas where the House might move forward with President Obamas Jobs Proposal, but that tax increases would not be included in that. Only in Washington can you propose creating jobs by raising taxes, he said.
NADA president Phil Brady said the association would focus its considerable lobbying muscle on the following issues over the course of the next twelve months:
[U]Fuel Economy Standards Should Reflect Consumer Demand[/U]. NADA supports efforts to return the regulation of fuel economy to a single regulator (NHTSA). NADA backs an amendment by Rep. Steve Austria (R-OH) that for one year: (1) curbs EPAs overreach by requiring that increases in fuel economy after MY 2017 are conducted according to the NHTSA program, which was specifically designed by Congress to ensure that jobs, consumer choice and market demand are considered; and (2) would limit Californias influence in setting national fuel economy standards. In July, the House Appropriations Committee passed the Austria amendment by a vote of 27-20 as part of the 2012 Interior/Environment Appropriations bill (H.R. 2584).While certain automakers have agreed in principle to raise fuel economy to 54.5 mpg for MYs 2017-25, the rulemaking is still in the early stages. NADA remains concerned that increased vehicle costs from this rule-making (at least $3,000 per car by EPAs own estimates) will adversely affect vehicle sales. The full House has set aside H.R. 2584 and is not expected to vote on the measure; but the Austria amendment could be rolled into a larger appropriations bill. NADA is also seeking Senate backing for the amendment. Congress should include the Austria Amendment in any end of the year appropriations measure.
[U]Used Car Recall Mandates Should Focus on Timely Repairs[/U]. Congress is considering vehicle recall proposals that focus on the dealer resale process, instead of focusing on making repairs quickly at the time of a recall. An ineffective proposal that calls for halting used car sales until the dealer remedies used vehicles with outstanding recalls does not differentiate between serious and minor recalls. An alternative that would mandate dealerships certify to a consumer if a used vehicle is subject to a recall whether the recall work has been completed would disrupt used car commerce, since dealers can only complete recall repairs on brands they sell. Both these recall provisions exclude private sales, which account for one third of the market; these proposals would encourage more unregulated sales in the casual used car market, decreasing the safety of used vehicles. The Senate may pursue this issue as part of the highway bill. Congress should focus on encouraging vehicle owners to have recalled vehicles fixed in a timely manner after receiving a recall notice from the manufacturer. [U]Tax Reform Should Not Favor One Particular Tax Entity[/U]. Dealership business models operate in a variety of entity forms, including partnerships, sole proprietorships, limited liability corporations, and S corporations, as well as traditional C corporations. Dealers who have made significant long-term investments relying on the tax treatment of a particular entity form should not be negatively impacted by efforts to change such tax treatment. Congress should ensure any tax reform effort provides consistent treatment to all taxpayers, regardless of their entity form. [U]LIFO Should Not Be Repealed[/U]. Many dealerships have used the LIFO accounting method for decades. Repealing LIFO would be equivalent to a substantial tax increase, requiring payment of phantom income, significantly affecting the business. LIFO repeal is unwise, particularly in a fragile economy, and would make it harder for dealers to manage inventory inflation. Congress should oppose changes to current LIFO law. [U]Estate Tax Reform Should Be Permanent and Protect Small Business Dealers[/U]. Legislation passed last year set the estate tax through 2012 at a 35 percent rate and a $5 million per spouse exemption. Unless Congress acts before the end of 2012, the tax would revert to 2001 levels of a 55 percent rate and a $1 million exemption. Congress should, at a minimum, support permanent estate tax reform at a 35 percent rate and a $5 million exemption and preserve stepped-up basis and other estate planning provisions that help family businesses. Download Bulletin PDF