National Automobile Dealers Association Supports Legislation to Boost Retail Automobile Sales

Strategic Insights -

The National Automobile Dealers Association (NADA) has strongly endorsed legislation proposed by U.S. Sen. Barbara Mikulski to stimulate the economy by increasing retail automobile sales. Sen. Mikulski's proposal, The Auto Ownership Tax Assistance Act, would grant a tax deduction for consumers who purchase a new car or truck, allowing them to temporarily deduct sales and excise taxes as well as interest on auto loans from their income taxes. This move is seen as a potential economic booster, with NADA's Vice President of Legislative Affairs, David Regan, stating that a surge in new vehicle sales would create a wave of economic activity that would be felt throughout the nation.

Key Takeaways:

  • The National Automobile Dealers Association (NADA) supports legislation proposed by U.S. Sen. Barbara Mikulski to stimulate the economy by increasing retail automobile sales.
  • Sen. Mikulski's proposal, The Auto Ownership Tax Assistance Act, grants a tax deduction for consumers who purchase a new car or truck, allowing them to temporarily deduct sales and excise taxes as well as interest on auto loans from their income taxes.
  • Rep. Bill Pascrell, D-N.J., introduced a companion measure in the House, H.R. 159, earlier in the month.
  • David Regan, NADA's VP of Legislative Affairs, stated that a boost in new vehicle sales would create a wave of economic activity, impacting dealers on Main Street and the factory floor.
  • Flagging consumer confidence, not a lack of credit availability, is still depressing new vehicle sales.
  • NADA represents about 20,000 new-car and truck dealers, with nearly 43,000 separate franchises, domestic and import.

Statistics:

  • Auto sales constitute almost 20 percent of the nation's retail economy.
  • The federal government is propping up two major domestic automakers.
  • A percentage of new vehicle sales generate immediate sales tax revenues for state and local governments.

Sources:

  • PRNewswire-USNewswire
  • The National Automobile Dealers Association (NADA)