Death Tax Repeal Bill Passes House; AIADA Applauds the Passage of Top Legislative Priority

WASHINGTON, June 18 -- The American International Automobile Dealers Association (AIADA) applauded the passage today of H.R. 8, the Death Tax Repeal Permanency Act of 2003, which would make permanent the elimination of the tax in 2010. The tax relief package of 2001 did include the elimination of the death tax but because of arcane congressional budget rules, these tax cuts will expire in 2011. The death tax therefore will be reinstated one year after it is repealed and will resurrect to its current rates that can be as high as 55%.

"Now is the time to kill the death tax once and for all," stated AIADA Chairman Tim Smith. "The death tax is a heavy burden for millions of family owned American businesses." Smith is a second-generation automobile dealer whose children are also active in the dealership. "Until this tax is eliminated for good, we are forced to devote countless hours and resources to estate planning or risk the consequences. Our customers and the American economy would be much better served if these resources could be spent creating new jobs, developing new products and services and expanding our business."

As many as 96% of the dealers surveyed by AIADA indicated their business was family owned and operated. 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.

AIADA is now calling on the Senate to make the repeal permanent. "Our job is not done and therefore we will remain vigilant until this tax is gone forever," stated Smith. AIADA is engaging its nationwide network of automobile dealers to drive the message forward that Congress must pass permanent repeal of the death tax.

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.