ARLINGTON, VA.,—Michael J. Stanton, President and CEO of the Association of International Automobile Manufacturers (AIAM), sent the letter below to Senators Mikulski and Bond, in support of S. 3684 which would allow consumers to deduct interest payments and excise taxes on new car sales and loans.
Dear Senators Mikulski and Bond:
Each day brings fresh news about the extraordinary and challenging economic conditions facing all automakers in the United States. As many have observed, the automobile industry and its 20,000 retail dealers comprise one of the most important sectors of the American economy. It is for this reason we write in support of your bill S. 3684, a creative and important part of the effort to reinvigorate our economy and our industry.
Allowing consumers to deduct interest payments and excise taxes on new car sales and loans, as S. 3684 provides, will help invigorate sales and restore vitality to our industry. Such legislation, particularly if amended to apply also to new vehicle leases and adopted prior to the winter sales season, would provide a useful incentive for consumers to return to dealer showrooms at a critical time.
We should not underestimate the importance of the auto industry to the American economy. Car and truck sales have historically represented approximately 20% of all retail sales annually in the United States. Located in communities across the country, car dealerships employ over 1 million men and women. Spending by these employees creates a positive ripple effect that is vital to the revival of America’s economic health.
With this year’s dramatic declines in auto sales and production, it is critical that we develop solutions that move our economy forward. S. 3684 would provide a much needed “shot in the arm” for automakers, component suppliers – the “backbone” of our national economy – and dealers.
AIAM supports S. 3684 and urges its prompt adoption.
Michael J. Stanton
President and CEO