American International Automobile Dealers Association (AIADA) representatives recently met with other industry leaders and White House National Economic Council Director Gary Cohn to discuss tax reform.
AIADA’s 9,600 automobile dealers were represented by AIADA President Cody Lusk, AIADA Vice President of Government Relations Rachel Robinson, and AIADA Vice Chairman Howard Hakes.
The organization supports tax reform with the exception of the proposed 20 percent Border Adjustment Tax (BAT). The BAT would be imposed on all goods and services entering the U.S., even those from nations with trade agreements.
“America’s international nameplate dealers fully support federal tax reform but remain deeply opposed to the BAT provision, which would drive up the cost of every vehicle on their lots by an average of $2,000 per vehicle,” Lusk said. “We were grateful to have an opportunity to share our perspective with the White House, and we are optimistic that a well-crafted tax reform bill, minus the BAT, can make its way through Congress and to the president’s desk for his signature.”
If the BAT were imposed, U.S. light-vehicle sales would drop 5.6 percent, according to the Center for Automotive Research, while the average price of a vehicle would increase $2,000.
Customers would see a $34.6 billion in additional costs.