A contingent of NJ CAR NextGen Committee members and other dealer representatives traveled to Washington, DC, on March 8-9, 2017, to meet with legislators and voice the industry’s opposition to the proposed Border Adjustment Tax (BAT). The American International Automobile Dealers Association (AIADA) coordinated the “fly-in” for dealers from across the country.
NJ CAR’s representatives met with Senator Cory Booker and Representative Leonard Lance (R-7), as well as the staff of Senator Robert Menendez and Representatives Donald Norcross (D-1), Tom MacArthur (R-3), Chris Smith (R-4), Josh Gottheimer (D-5), Bill Pascrell (D-9) and Rodney Frelinghuysen (R-11) to voice the industry’s opposition to the proposed BAT that would negatively affect dealers, their employees AND, most importantly, their customers.
The BAT proposal—currently set at 20%—is part of the House Republicans’ tax reform legislation and would drive up the cost of every vehicle sold in the United States. There is no “official” legislation, as of yet, but the House Republican Ways and Means Committee is considering a new 20% tax on all goods or services imported into the United States. The BAT, as currently formulated, would apply to all imported automobiles and auto parts, even from countries with which we have existing trade agreements.
Analysts at UBS Securities, LLC, estimate the proposed BAT could raise average automobile prices in the U.S. by about 8%, or $2,500 per vehicle—enough to reduce annual sales by about two million vehicles.
NJ CAR will continue following developments regarding the BAT and will report any changes to our members.