NADA Presses Congress, Obama to Include Tax Break for Auto Purchasers in Stimulus Plan

NADA Presses Congress, Obama to Include Tax Break for Auto Purchasers in Stimulus Plan

With auto sales at a 16-year low, NADA is pressing the new Congress and the incoming Obama administration to temporarily restore the tax deductibility of auto loan interest to help stimulate the economy. This concept was first put forth at the end of last year by Sen. Barbara Mikulski (D-Md.) who introduced legislation at NADAs behest. Now, NADA wants tax break legislation included in the larger economic stimulus package being considered by Congress.

Since the stimulus plan is being written in the coming days, it is critical that dealers phone their members of Congress immediately to ensure that they press their House and Senate leaders to include auto interest deductibility in the overall economic stimulus plan, said David Regan, vice president of legislative affairs at NADA.

The tax break measure introduced by Sen. Mikulski in the Senate was introduced in the House by Rep. Bill Pascrell (D-N.J.), and has gained broad bipartisan support. The proposal would stimulate consumer spending by making auto loan interest and title tax deductible for any new car purchase under $49,500 from the date of enactment through Dec. 31, 2009. These incentives could save an average family more than $1,500 on a $25,000 vehicle purchase. (Only individuals with income under $125,000 or families with incomeunder $250,000 would be eligible.)Rep. Pascrell has already reintroduced the bill in the House (H.R. 159) and Sen. Mikulski is expected to follow suit in the Senate.

Members of Congress need to hear directly from dealers on this without delay!Such a tax break can only help provide the impetus needed to bring customers back to the showroom and provide much needed title tax revenue to state governments. WANADA members can phone their members of Congress locally through the Capitol Switchboard at (202) 224-3121: in the House, Reps. Gerald Connolly (D-Va.), Donna Edwards (D-Md.), Steny Hoyer (D-Md.), Jim Moran (D-Va.), Frank Wolf (R-Va.), and Chris Van Hollen (D-Md.); in the Senate, Sens. Ben Cardin (D-Md.), Jim Webb (D-Va.) and Mark Warner (D-Va.). There is no need to contact Sen. Mikulski, but a thank you message is appropriate. For more information, contact NADAs Legislative Office (800) 563-1556.