WASHINGTON, D.C. -
With the midterm elections behind us, the question being asked across America is, "What now?"
 
Post-election, members of Congress have returned to their Washington, D.C., offices for a lame duck session that will conclude around Christmas.
 
Some legislators left their districts energized from successful campaigns. At least 68 are back for just a few months. They either lost their elections or plan to retire at the close of this Congress. Of those so-called "lame ducks," 64 are Democrats.
 
So what does this mean for dealers? Some analysts expected routed Democrats to pass as much of their agenda, up to 20 bills, as quickly as possible before they lose their majority in the House of Representatives. Instead, Democratic leaders have whittled that long list of agenda items down to just a few, including a continuing resolution to keep the government open until the 112th Congress is installed, and a plan to extend the expiring tax cuts made during 2001 and 2003.
 
While you might marvel at just how lame this lame duck agenda is looking, dealers should be glad that the expiring tax cuts are finally being addressed. As the issue comes up for debate, we need to be united as one strong voice against a tax increase and in support of a full extension of those cuts.
 
All small business owners know that uncertainty is a business killer. No one buys a car when they are unsure about their income security. With the welcome and gradual recovery in unemployment rates, dealers should be seeing an uptick in sales. Instead, for many Americans, uncertainty still lingers. They have no idea what Uncle Sam will be taking from their pockets come April 15, and until they know, they won’t buy.
 
Think the cuts won’t have a big impact on you or your customers? Think again. If the cuts expire entirely, as they are set to do on Dec. 31, earners making $37,000 to $65,000 will pay an extra $1,000 in taxes. Those in the $65,000 to $111,000 bracket will pay an extra $2,000. And the top 1 percent? They can expect to pay an extra $72,000. In addition, tax credits exemptions, and deductions will be restricted.
 
An ax bump like that could destroy all the hard-earned progress our industry has made over the past year.
 
The American International Automobile Dealers Association is disappointed that the issue of the pending free trade agreement with South Korea is still seeing so much resistance from some in Congress. We will continue to work to bring that issue to the forefront in Washington.
 
In the meantime, Congress has a wide-open slate for the next few weeks, and should be forced to work on the tax cut issue, something they have been playing political hot potato with for far too long. We look forward to the full and final extension of the cuts that will allow dealers and their customers to plan sensibly for the future.
 
Rick DeSilva is a dealer as well as AIADA chairman.