Auto Dealers Disappointed in Senate's Failure to Pass Permanent Death Tax Repeal

WASHINGTON, June 13 -- The American International Automobile Dealers Association (AIADA) expressed its disappointment today regarding the Senate's failure to approve legislation that would permanently repeal the death tax. "It's a sad day for auto dealerships and other small businesses across America," said AIADA President Walter Huizenga. "Permanent repeal of the death tax and the elimination of the sunset provision in the law remains AIADA's top legislative priority and we will be vigilant in our efforts to see that this unfair tax goes away for good."

AIADA represents America's 10,000 automobile dealerships that sell and service international nameplate brands. Many of these businesses are family- owned, and can be devastated by the death tax. More than 600 AIADA members from across the United States descended on Capitol Hill on May 22 to participate in the association's Automotive Congress, the largest legislative conference in the industry, and urge Congress to permanently repeal the death tax.

An AIADA-supported landmark tax relief package enacted on June 7, 2001, included broad-based income tax cuts for individual businesses and the elimination of the death tax over 10 years. However, due to arcane congressional budget rules, all of the tax cuts in the new law will "sunset" in 2010. Thus, the onerous death tax will be reinstated only one year after it is repealed. The temporary nature of the death tax repeal provisions has created numerous problems and uncertainty for many family-owned businesses.