Gore and Bush Tax Plans Would Boost Auto Sales
2 November 2000
CNW Marketing Research: Gore and Bush Tax Plans Would Boost Auto SalesBANDON, Ore., Nov. 1 The auto industry would benefit from measurable sales gains if either George W. Bush or Al Gore win the presidency and a willing congress enacts either of their tax plans. But the competing tax-reduction programs have significantly different impact. According to CNW Marketing Research's annual Money Trak national study, if George W. Bush wins the presidency and congress enacts his tax-rate reduction proposal, the auto industry would reap about 530,000 addition unit sales worth more than $12.5 billion. Under Vice President Al Gore's targeted tax cuts, the industry would see sales increase 150,000 units and $3.5 billion. Bush No Tax Bush Tax Bush Tax Bush Plan's Sales Rate Cut Rate Cut (millions) Added Increase (millions) (millions) Added Units Dollar Volume New auto sales 3.1% 17.1 17.63 0.53 $12,455,000,000 Gore No Tax Gore Tax Gore Tax Gore Plan's Sales Rate Cut Rate Cut (millions) Added Increase (millions) (millions) Added Units Dollar Volume New auto sales 0.9% 17.1 17.25 0.15 $3,525,000,000 CNW conducts its twice-a-year study of adult Americans to measure their product-purchase intentions. The total sample base is 47,000-plus and results in a highly regarded annual "Wish List" of purchase plans. By correlating the product-purchase intentions against sample-respondents' income, adjusting spending patterns to reflect additional adult disposable income levels after the tax cuts and performing other economic analysis, CNW was able to determine if the auto and other industries would benefit from the presidential candidates' tax plans. Other industries that would see increased consumer purchases from the Bush and Gore tax plans include housing (up 1.6 percent under Bush's plan, 0.8 percent under Gore's plan), the stock market (8.3 percent and 2.4 percent respectively), foreign travel (2.9 percent and 1.3 percent), home electronics (6.3 percent and 2.4 percent), savings (1.2 percent and 1.3 percent), used cars (2.1 percent and 5.6 percent). Note, all increases are in addition to the Wish List's anticipated 2001 levels. The results of a similar 1996 study showed Presidential candidate Bob Dole's proposed tax cut would have gone to paying existing bills rather than purchasing new products or services.