[Congressional Record Volume 141, Number 109 (Friday, June 30, 1995)]
[Extensions of Remarks]
[Page E1369]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                  CONSUMER AUTO-TAX RELIEF ACT OF 1995

                                 ______


                           HON. SHERROD BROWN

                                of ohio

                    in the house of representatives

                         Thursday, June 29, 1995
  Mr. BROWN of Ohio. Mr. Speaker, I rise today to introduce legislation 
that will offer support to one of America's most important industries. 
As American car-makers face unfair competition abroad, the Consumer 
Auto-tax Relief Act of 1995, will give a valuable shot in the arm to 
the domestic auto market.
  Yesterday, in a dangerous game of brinkmanship, the administration 
and Japanese negotiators only narrowly averted an all out trade war. 
While I applaud the administration for taking a tough trade position 
with the Japanese and appreciate the promise of more accessible 
Japanese markets, this strategy only addresses part of the problem I 
want to solve. The C.A.R. Act of 1995 carefully crafts language that 
benefits an entire spectrum of interests. The C.A.R. Act offers us tax 
relief for middle-class families, support for our domestic auto 
industry, and a chance for a cleaner environment. By supporting this 
bill, we can stand up for American consumers, American business, and 
American workers.
  The C.A.R. Act is simple. It restores the deductibility of interest 
on loans for any car under $35,000 with at least 60 percent domestic 
content, according to the standards established in the American 
Automobile Labeling Act of 1993.
  Besides the obvious benefit to American car manufacturers, the C.A.R. 
Act benefits taxpayers by offering much needed tax relief. This 
Congress we have heard a lot about the benefits of tax relief, but 
rarely have we offered measures that benefit both business and middle-
class interests. The C.A.R. Act offers us a chance to offer real 
relief, to real people and help the business community in a truly 
positive way.
  In 1994, the average interest payments on a new car amounted to 
$1,574 annually. Restoring the deductibility of these payments would 
make automobiles more affordable to people who depend on automobiles 
for transportation. Americans have a unique driving culture in that we 
use our cars for everything from going to work to going on vacation. 
Parents take their children to after school activities, students drive 
to school, families take road trips and employees get to work--all in 
their cars. The fact is, most families need a car to do even routine 
chores like shopping for groceries. By offering this deduction, the 
C.A.R. Act makes this necessary mode of transportation more accessible 
to everyone. This is truly a progressive tax break.
  In addition to making American cars more accessible to everyone, the 
C.A.R. Act gets older cars off our roads and gives us cleaner air. As 
consumers take advantage of the benefits of the C.A.R. Act, older cars 
will be replaced with newer, cleaner burning, and more fuel efficient 
models that will
 go a long way in preserving the quality of our air. Again, the C.A.R. 
Act is a common sense move, not only for American jobs, industry and 
taxpayers, but also for our environment.

  The C.A.R. Act does still more. By defining an American car by 
content level, the C.A.R. Act also encourages foreign owned 
manufacturers to purchase American made parts. Currently, most foreign 
cars built in the United States and Canada have approximately a 48-
percent American content. In response to this initiative, foreign 
companies that build in the United States and Canada may choose to 
purchase more American made parts to allow their cars to qualify for 
the deduction. This represents just another benefit to America's auto 
industry.
  The U.S. Trade Representative tells us that fully one-third of all 
autos sold in the U.S. domestic market are foreign. Until we see 
corrective action to improve our trade imbalance with Japan, we must 
support the C.A.R. Act and other measures like it to show American auto 
industry workers, manufacturers, and consumers that we appreciate their 
efforts and care about the work they do. In my hometown of Lorain, OH, 
3,800 people at the Lorain Ford auto plant(s) depend on me to do 
everything I can to protect American jobs, markets, and industry. The 
C.A.R. Act gives us all the chance to do just that.
  Finally, I would like to acknowledge Ford, Chrysler, General Motors 
and the American Automobile Manufacturers Association for responding to 
my calls for assistance with creating an incentive not only to buy 
American cars, but also to support middle-class families. Their 
assistance was invaluable, and I appreciate their input. They 
understand, as I do, that the C.A.R. Act represents an opportunity for 
American industry, American workers and middle-class taxpayers. It 
means more jobs, greater production and a boost to our economy.
  The auto industry is the cornerstone of the American industrial base, 
and it deserves our support. In 1994 alone, America's car companies 
contributed almost 11 percent to the growth in the U.S. gross domestic 
product and directly employed 2.3 million workers. Encourage consumers 
to buy American cars and show your support for our domestic industry by 
co-sponsoring C.A.R. Act of 1995. Give American consumers a break and 
show the world we mean business.
  Thank you.
  

                          ____________________