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November 30, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Sen. Paul Amendment to Preserve Floor Plan Deductibility Could Be Decided Today
Senate Votes to Begin Debate on Tax Overhaul
Ron Johnson Plans Amendment to Divert Tax Cuts from Corporations to Other Businesses
WSJ Opinion: Seven Days in November
Take Your Pick From 150 Models in America’s Saturated SUV Market
NADA Show 2018 Announces Schedule for Educational Workshops
Top Stories
Sen. Paul Amendment to Preserve Floor Plan Deductibility Could Be Decided Today

NADA Urges Dealers to Call Their Senators to Urge Support for the Paul Amendment

Last night, Sen. Rand Paul (R-Ky.) introduced an amendment to the Senate tax reform bill that would preserve the full deductibility of floor plan interest.  (The House tax reform bill has a virtually identical provision.)  The Paul amendment would ensure that the limitation in the Senate tax reform bill which caps business interest deductibility at 30 percent does NOT affect floor plan interest.  Without the Paul amendment, small business dealers could be penalized with higher taxes simply because they carry a high-cost inventory. 

NADA strongly supports the Paul amendment and thanks him for his leadership on this important issue to ensure closely-held small businesses with large inventories are not treated the same as large corporations.

Time is short. Dealers are urged to immediately contact their Senators and ask them to vote yes on the Paul amendment.

Dealers should call their Senators, even if calls have already been placed, to urge support for the Paul amendment. Sen. John Kennedy (R-La.) has also added his name to the amendment.

Debate on the bill has already begun, and a vote on final passage is expected Friday.

Click here for the one-pagerClick here for the list of Senate phone numbers.

Click here to be connected with your Senator directly.


We want to hear your Senate feedback! Please contact Patrick Calpin, NADA Legislative Affairs, at 202.547.5500 or at legislative@nada.org to report your if your Senators support the Paul amendment.
Source: NADA

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Senate Votes to Begin Debate on Tax Overhaul

The Senate moved closer to approving a sweeping overhaul of the tax code on Wednesday, voting to begin debate on the tax bill as Republican leaders continue trying to secure the votes for final passage. The procedural vote, which passed 52 to 48 along party lines, put the Senate on track for a final vote later this week.

The push by Senate Republicans to pass an ambitious tax overhaul now enters a critical and politically delicate phase. Republican leaders still lack firm commitments from enough of their members to ensure passage later in the week, and significant changes were still being discussed on Wednesday.
Source: The New York Times

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Ron Johnson Plans Amendment to Divert Tax Cuts from Corporations to Other Businesses

Sen. Ron Johnson, R-Wis., said Wednesday evening that he will offer an amendment to the Senate GOP tax bill to divert tax cuts away from corporations and toward non-corporate businesses like partnerships and sole proprietorships, a change that could allow him to fully support the tax overhaul.

Johnson had opposed the Republican bill this week on the grounds that it would put small businesses at a disadvantage to corporations, which would get a 20 percent tax rate. On Wednesday, though, he appeared to move closer to a "yes" vote, as he first voted late Wednesday afternoon to proceed to debate on the bill, and then later outlined his plan for the amendment…

The amendment Johnson plans to offer with Lindsey Graham, R-S.C., would lessen the tax cuts for corporations by preventing them from taking deductions for income taxes paid to state and local governments.

“We're going to use that savings to increase the deduction and bring down the rate for pass-throughs,” Johnson told reporters.
Source: Washington Examiner

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WSJ Opinion: Seven Days in November
By Holman W. Jenkins, Jr.

After 241 years, the United States experiences its first coup attempt.

It would be hard to exaggerate the absurdity of events now overtaking the Consumer Financial Protection Bureau—and, if they weren’t so laughable, their dangerousness. Let’s revisit the history of this peculiar new agency. It was created largely at the behest of Harvard Law professor and future senator Elizabeth Warren as part of the sprawling Dodd-Frank legislation.

The agency was set up to be funded directly by a levy on the Federal Reserve, operator of the nation’s monetary printing press, independent of the federal budget process or congressional appropriations. In a Putinesque move, Ms. Warren removed herself from consideration as the agency’s head and encouraged President Obama to appoint one of her protégés, Richard Cordray.

Flash forward to a new and hostile administration of the opposite party. Mr. Cordray, with one year left on his statutory term, announces his resignation. He also, citing a passage in the agency’s founding statute, asserts his right to name his own successor, which he does in the person of Leandra English, another Warren loyalist.

Ms. English immediately launches a lawsuit to nullify President Trump’s presumed power, under a separate law, the Vacancies Act, to name an acting director to replace Mr. Cordray. Now if Ms. English can prevail in court and Senate Democrats can block a new appointee after Mr. Cordray’s term expires next year, presumably Ms. English can remain acting director as long as she wants, with power to name her own successor.

Voilà, an agency of the federal government becomes the dynastic possession of Ms. Warren and her designated cronies. Vladimir would be impressed. All this might seem harmless given the agency’s limited powers, restricted mostly to policing the disclosures of financial institutions in their dealings with consumers. But is it?

Recall that one of the new agency’s first priorities under Mr. Cordray was to go after auto dealers, though Dodd-Frank explicitly excluded them from the agency’s oversight. Click here for the full article.
Source: The wall Street Journal

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Take Your Pick From 150 Models in America’s Saturated SUV Market

How many SUVs is too many? It’s not a question automotive product planners seem to be asking themselves, judging from the shiny sheet metal under the spotlights of this week’s Los Angeles Auto Show. Fifteen football fields of space is crawling with crossovers from Nissan Motor Co. and Hyundai Motor Co. and beefier sport utility vehicles built by BMW AG and Toyota Motor Corp. By 2020, more than 150 such models will be selling in U.S. showrooms, 50 percent more than at the beginning of this decade, according to researcher LMC Automotive.
Source: Bloomberg

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NADA Show News
NADA Show 2018 Announces Schedule for Educational Workshops

At NADA Show’s workshops and idea sharing sessions, attendees get to the heart of current issues and trends in the areas of employee recruiting and retention, fixed operations (parts and service), variable operations (sales), digital and traditional marketing, legal and regulatory issues and more. Dealers, managers, consultants and other experts come together to work towards actionable solutions to the challenges dealers face each day.

Here's the full schedule of workshops and educational sessions at NADA Show 2018 next March. With more than 100 educational sessions scheduled, you’ll want to take the time to look over the schedule and plan accordingly. Workshops can be searched by track, date, topic and speaker in the advanced search feature.
Source: NADA Blog

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Quotable
"Time is short. Dealers are urged to immediately contact their Senators and ask them to vote yes on the Paul amendment."

    --  NADA Legislative Affairs Alert, Nov. 30

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