Auto Care Insider Volume 103 - 22

GOVERNMENT
AFFAIRS
FIVE WAYS
THE NEW
CONGRESS
WILL
IMPACT THE
AUTO CARE
INDUSTRY
By David Pinkham
Manager, Government Affairs,
Auto Care Association

WASHINGTON is still buzzing about
the surprising election results and how
certain interests will fare in 2017. While
it remains unclear what PresidentElect Trump's policy priorities will be,
congressional leaders have already
begun to set the stage for meaningful
action on a number of key issues. The
following are five dynamics that the
Auto Care Association will be closely
following over the next several months.

1. This will be the first time since
2006 that Republicans control the
White House and both chambers
of Congress. While some may
think that every Republican-backed,
"business-friendly" initiative coming
out of the House the last six years will
automatically become law, Senate
Republicans are well short of the
60 votes required to overcome a
Democratic filibuster. Plus, given the
likelihood that some congressional
Republicans may object to Trump's
policy priorities, the gridlock in
Washington will not end overnight.
Everyone will be watching both the
administration and congressional
leaders to see how they navigate
the strong differences between the
parties as well as within each party.
2. Tax reform is alive! Numerous
members of Congress have sought
comprehensive tax reform for years
but such legislation is inherently
controversial and requires compromise,
not solely between Republicans and
Democrats, but between party factions
as well. However, House Ways and
Means Committee Chairman Kevin
Brady, R-Texas, and Senate Finance
Committee Chairman Orrin Hatch,
R-Utah, have publicly signaled their
intention to take up tax reform next
year. While this appears to be a good
sign, every stakeholder in Washington,
including the Auto Care Association,
will want their interests protected and

thus complicate the process. For
example, while the association would
support a reduction in corporate tax
rates, we would strongly oppose the
Border Adjustability Tax, a provision
being touted by Trump and key
congressional Republicans that
would dramatically increase taxes
for businesses who import, thereby
raising prices for the end consumer.
3. Obamacare is dead! Well...
maybe. One issue that congressional
Republicans and Trump were in total
agreement on during the campaign was
repeal of the Affordable Care Act, or
Obamacare. Although Trump recently
stated that he was reconsidering his
stance on certain provisions of the law,
congressional Republicans will almost
certainly make an effort to fulfil their
"repeal and replace" promise. Clearly,
this is easier said than done. Any sort
of repeal would likely be delayed as
details of a substitute proposal and
its implications are worked through.
4. Okay, TPP is
definitely dead. The
overall change in attitude
toward free trade among
Republicans - both
legislators and voters
- over the last
couple years



Table of Contents for the Digital Edition of Auto Care Insider Volume 103

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Auto Care Insider Volume 103 - No label
Auto Care Insider Volume 103 - Cover1
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Auto Care Insider Volume 103 - 1
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