President Signs AIADA-Backed Tax-Cut Bill

     Final Measure Includes Death Tax Relief for Family-Owned Businesses

    WASHINGTON, June 7 In a ceremony at the White House,
President Bush today signed the $1.35 billion tax package into law, which
includes the American International Automobile Dealers Association's (AIADA)
much sought-after provision to repeal the death tax.

    Among those attending the ceremony was AIADA's Chairman of the Board
Richard Kull.  "I was thrilled to be able to witness this historic occasion,"
said Kull.  "AIADA dealers played an integral role in passing this legislation
by communicating with their legislators to explain the devastating impact this
unfair tax can have on family-owned businesses."

    The majority of automobile dealerships are family-owned businesses.  Upon
the death of the dealer principal, surviving heirs must pay death taxes of up
to 55 percent of the estate's total value -- in cash -- to the federal
government.  To pay these unreasonable taxes, heirs often must sell the
business, break it up or liquidate their assets.  AIADA, in conjunction with
other organizations in the Family Business Estate Tax Coalition, activated
tens of thousands of small business people nationwide to successfully repeal
the death tax.

    The death tax repeal provision will provide a 10-year phase down leading
to repeal of the death tax.  During the 10-year period when the death tax is
phased down and repealed, significant relief will be provided through death
tax rate reductions as well as through future increases in the unified tax
credit.

    Last month, nearly 700 automobile retailers from across the country
descended on Capitol Hill to urge Congress to eliminate the death tax.  The
dealers were in town to attend AIADA's 24th Annual Automotive Congress, the
largest grassroots lobbying event in automotive industry.