Michigan-based auto dealer George Sharpe Jr. recently told the House Ways and Means Committee the border tax would have a chilling effect on auto sales.

The House Ways and Means Committee got an earful as car dealers, small businesses and retailers mounted attacks on the “border adjustment tax” that has been promoted by President Donald Trump and House Speaker Paul Ryan.

Trump sees the border adjustment tax as a way to return jobs to the U.S. while Ryan apparently believes the border tax can be used to help offset revenue by larger tax cuts now under consideration in Washington D.C.

“Our plan will vault the U.S. tax code to among the most competitive in the world, ensure a level playing field for American businesses, and encourage companies to bring jobs back from overseas and manufacture products here at home,” Ryan said recently.

But the reaction of the border adjustment tax has been sharp and the opposition shows signs to getting broader as the opponents continue to organize to counter the proposal.

(Trump’s border tax plan headed for oblivion. For the story, Click Here.)

The American International Automobile Dealers Association, which has opposed the tax from the very start, whose members accounted for 59% of all U.S. retail vehicle sales last year, reiterated it is dead set against the tax.

AIADA President Cody Lusk noted the hearing raised concerns about the impact that the border adjustment tax will have on middle class American consumers, who will be forced to foot the bill for a corporate tax cut.

“While America’s international nameplate dealers fully support federal tax reform efforts, they are deeply opposed to the border adjustment tax provision, which will drive up the cost of every vehicle on their lots and ultimately impact the price customers pay for reliable, safe transportation by an average of $2,000 per vehicle,” said Lusk.

“We continue to urge Congress to abandon the border adjustment tax in favor of pro-growth policies that will help, rather than hinder American businesses and the customers they serve.”

George Sharpe Jr., general manager of The Sharpe Collection, a car dealership in Grand Rapids, Michigan, said, “As an auto dealer, I’m very concerned about the effects of the Border Adjustment Tax.

(Click Here for details about Trump’s ongoing threats to foreign automakers.)

“Not only will gas prices rise by as much as $.35 per gallon, but monthly car payments could increase by an average of $100. That will directly impact my business and is going to have a chilling effect on the entire new car industry.”

A new organization lobbying against the proposed border tax, “Americans for Affordable Productions, also released a poll by the Tarrance Group, indicating there was little support for the proposal.

The results showed that 63% of voters oppose the border adjustment tax, including 46% of voters who strongly oppose this proposed tax. The survey noted here is majority opposition to this proposal among voters in states where the political contests for Senate and U.S. President are the most contentious.

Two thirds of key voting blocs like women and seniors oppose the tax, according to the survey.

(To see why MEMA is against Trump border tax plan, Click Here.)

A simulated debate question on the border adjustment tax showed a majority or 56% of voters select that the border adjustment tax is a bad idea versus just 37% of voters who indicate that this proposal is a good idea. Voter opposition to the border adjustment tax increases when they learn about the potential economic impact it could have on them, the survey indicated.

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