AIADA Says Discriminatory Tax Increase in Farm Bill Discourages Business Investment in America

Alexandria, VA (July 26) - American International Automobile Dealers Association President Cody Lusk today respectfully urged Members of the House of Representatives to oppose the rule for H.R. 2419, the Farm Bill Extension Act of 2007, which calls for a tax hike on U.S. companies and puts current and future American jobs at risk. In a letter sent to Members of Congress earlier today, Lusk requested that Members move away from blatantly protectionist tax increases that place a discriminatory tax on foreign companies located in the United States.

"Foreign investment, coupled with hardworking Americans, has spurred the growth of innovation in the marketplace and millions of jobs in America, ultimately resulting in better choices for American consumers,” said Lusk. “This is nothing more than a thinly veiled attempt to wield a punitive tax on the American worker in order to pay for spending increases in the farm bill, the negative impact of which will be felt in economic markets all across America."

The international automotive sector is prevalent throughout America with significant investments in states such as Alabama, Georgia, Texas, South Carolina, Tennessee, Kentucky, Ohio, Indiana, Mississippi, and California. Investments by these automakers have reached over $36 billion at U.S.-based vehicle manufacturing plants and other facilities, with additional investments of $3.3 billion projected through 2009. American jobs provided by these automakers, their suppliers and dealers are well over 1.7 million.

U.S. subsidiaries of foreign-based companies provide a total of 5.1 million jobs in the U.S. and support an annual payroll of $324.5 billion. The prospective fallout from this proposal is estimated at $7.5 billion in tax increases for U.S. subsidiaries of companies based abroad.

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About AIADA: Established in 1970, AIADA is and continues to be the only association whose sole purpose is to represent America’s 11,000 international nameplate automobile franchises that sell and service the following brands: Acura, Aston Martin, Audi, Bentley, BMW, Ferrari, Honda, Hyundai, Infiniti, Isuzu, Jaguar, Kia, Land Rover, Lexus, Maserati, Maybach, Mazda, Mercedes, MINI, Mitsubishi, Nissan, Porsche, Rolls Royce, Saab, Scion, Subaru, Suzuki, Toyota, Volkswagen and Volvo. These retailers have a positive economic impact both nationally and in the local communities they serve, providing more than 500,000 American jobs. Visit AIADA online at www.aiada.org.