AIADA Urges House Passage of Death Tax Repeal

ALEXANDRIA, Va., June 17 -- The American International Automobile Dealers Association (AIADA) strongly supports the passage of H.R. 8, The Death Tax Permanency Act of 2003.

"AIADA applauds the efforts of the House to repeal this onerous tax once and for all," said AIADA Chairman Tim Smith. "We look forward to seeing how our Representatives vote and who are the true supporters of America's family- owned businesses."

AIADA has activated its nationwide grassroots network to send a clear message to Congress that the Death Tax must be repealed once and for all. Automobile dealers from across the country will be calling on their Representatives in the House with a clear message that the Death Tax has created a burden on our nation's family-owned businesses.

"Congress needs to finish the job and permanently repeal the death tax, continued Smith. "The death tax is more than just a financial burden, it creates an obstacle to expand business, create jobs and provide additional employee benefits."

According to an AIADA membership survey, 53% say that if the principle owner were to die, any plans for expansion would be substantially curtailed or abandoned altogether. Over 40% of those same dealers indicated that in the event of their death, their heirs would have to borrow money using the stock of the business as collateral to pay the Death Tax. Additionally, an average of 52 dealership employees could be faced with the uncertainty of losing their jobs.

The landmark tax relief package enacted in 2001 included the elimination of the death tax. Because of arcane congressional budget rules all of the tax cuts in the new law will "sunset" in 2011. The death tax will therefore be reinstated only one year after it is repealed. The temporary nature of the death tax relief has created numerous problems and uncertainty for American family-owned businesses.

About AIADA

AIADA represents the 10,000 American automobile dealerships that sell and service international nameplate brands including Acura, Aston Martin, Audi, Bentley, BMW, Ferrari, Honda, Hyundai, Infiniti, Isuzu, Jaguar, Kia, Land Rover, Lexus, Maserati, Mazda, Mercedes, MINI, Mitsubishi, Nissan, Porsche, Rolls Royce, Saab, Subaru, Suzuki, Toyota, Volkswagen and Volvo. These retailers have a positive economic impact both nationally and in the local communities they serve, providing nearly 500,000 American jobs. Visit AIADA online at www.aiada.org.