Almost 400 auto dealers urge the Congress to revise the tax issues, especially the appalling increase in the estate tax.
The US has 17, 000 car dealers, most of which are family owned businesses, passed from generation to generation. The Congress passed in December 2010 a temporary 35% estate tax for estates worth over $5 million. If the Congress doesn’t revise the tax issues, the old estate tax of 55% with a $1 million exemption will go into effect in January.
“The estate tax particularly hurts dealerships since assets, such as land and single-use showroom facilities, cannot be liquidated to pay the tax without destroying the viability of the dealership,” the National Automobile Dealers Association said in a fact sheet.
A permanent solution at a fair rate would mean hundreds of families will still have a job in the future, therefore helping the economy of the nation. The Congress is likely to reconsider the tax issues after the November election. Dealers also try to convince Congress not to pass the “Right to Repair” legislation, as big parts companies such as AutoZone and NAPA will get proprietary information from automakers, which will help them make low-cost parts.