AIADA Responds to State of the Union Address

Alexandria, VA January 24, 2007; American International Automobile Dealers Association President Cody Lusk today issued the following statement in response to President Bush’s State of the Union address:

Twenty in 10 Energy Plan, Increase in CAFE Standards

President Bush announced a goal of 20% reduction of gas usage over 10 years, by 2017. Seventy-five percent of the 20% reduction will come from renewable and alternative fuels, including an increase in ethanol, cellulosic ethanol and biodiesel production and providing more support for plug-in hybrid research. This savings amounts to 35 billion gallons of gasoline, and it will replace 15% of the total usage. The remaining 5% will come from new CAFE (Corporate Average Fuel Economy) standards for cars, similar to the program in place for light trucks and SUVs, which is based on vehicle size. The administration envisions a CAFE that increases efficiency by 4 percent yearly for cars and light trucks, beginning in model year 2010 for the cars and 2012 for the light trucks. This translates into an 8.5 billion gallon savings in gasoline by 2017, which amounts to a 4% increase per year in passenger car and light truck fuel economy. All of this will go through NHTSA rulemaking to grant new authority to the Administrator to implement an attribute-based system for cars.

AIADA’s Response:

“AIADA applauds the Administration’s efforts to reduce America’s dependency on a depleting foreign oil supply by looking towards alternative sources of energy,” said Lusk. “At the same time, we would encourage President Bush and the 110th Congress to be diverse in their approach; making sure to pay equal attention to the vast array of advanced technologies available via the research and development efforts of all automakers selling and servicing vehicles in the U.S.”

“Likewise, it is important that as the federal government begins to craft laws and regulations which could alter the level of choice for American consumers, we truly consider the consumer and not allow government to pick winners and losers in the marketplace,” added Lusk.

Making Tax Cuts Permanent, Extending Pro-Growth Economic Policies

The President says balancing the budget through pro-growth economic policies and spending restraint better positions us to tackle the longer-term fiscal challenge facing our country. On February 5, the Administration will present its five-year budget proposal, while includes a plan to achieve balance by 2012 while addressing the nation’s most critical needs, including… sustaining the strength of our economy through permanent tax relief. The President’s tax relief has spurred robust economic growth, millions of jobs, and rising wages. A strong U.S. economy is fueling higher tax revenues. Tax revenues rose 11.8 percent in 2006 following a 14.6 percent increase in 2005. Receipts have increased nearly 35 percent since the tax relief was fully implemented in 2003, and 70 percent of the reduction in the deficit last year was attributable to increased tax revenues.

AIADA’s Response:

“AIADA members are hard working, American entrepreneurs – many of whom are small businessmen and –women who rely on a predictable and pro-growth oriented tax code to remain successful and continue to grow their operations,” said Lusk. “The success of President Bush’s tax cuts is clearly evident in the growth of the economy and the jobs sector. AIADA will exert every effort to see that these tax cuts are extended and that small business does not become the chopping block for economic protectionists looking to stymie growth in the heart of America’s economic engine.“