The Full Text of The Senators’ Letter Can Be Found Here WASHINGTON,
D.C. – Today, U.S. Senator Sherrod Brown (D-OH) led a group of colleagues in a
follow-up letter to U.S. Department of Treasury Secretary Janet Yellen, urging
her to provide tax relief to auto dealers experiencing inventory shortages due
to global supply chain issues. Pandemic-related supply chain disruptions have
impacted businesses and consumers, with slow-downs and factory closures,
particularly with semiconductors, leaving businesses with drastically lower
inventories. These disruptions could leave auto dealers in Ohio and across the
country with unexpected tax liability if not addressed. The senators’ letter is
a follow-up to a
letter they sent to Sec.
Yellen in November.
“The
automotive industry continues to face dramatic and unprecedented inventory
shortages due to the pandemic and foreign supply chain disruptions, and it will
take many months for affected local businesses, employees, and their customers
throughout our states and across the country to recover,” wrote the
senators. “Granting Sec. 473 relief will help protect the auto industry and
all its workers. Thank you again for your efforts to ensure a speedy economic
and automotive recovery.”
Supply
chain disruptions
have had
far-reaching impacts in Ohio, from bottlenecks in the trucking industry to long
delays in new home construction. While demand has remained strong over the last
year, production has been hindered by insufficient materials across many
industries. The shortage of microchips is a barrier to increased vehicle
production, and paint producers have cited a drop in sales due to a lack of raw
materials. Recent surveys by the Federal Reserve Bank of Cleveland have shown
that uncertainty about the future has made companies hesitant to invest in
additional capacity.
“On
behalf of Ohio’s 800+ franchised auto dealers, 55,000+ employees and the
communities that rely on dealer investment, we appreciate Senator Brown’s
leadership to provide stability to small businesses managing hugely depleted
inventories due to the impacts of unprecedented foreign supply chain
disruptions and the lingering shortage of semiconductor chips. Granting
temporary LIFO relief due to these pandemic-related
conditions will strengthen the retail auto industry and protect the
investments and jobs in the local economies they serve,” said Zach Doran,
President, Ohio Automobile Dealers Association (OADA).
Brown
has been pushing for action to support American semiconductor production, which
is key to supporting investments in Ohio’s manufacturing. Just last month,
Intel
announced a $20 billion
investment to build a semiconductor plant in New Albany, which is expected to
create 10,000 jobs. The House-passed
America COMPETES
Act will
boost Intel’s initial investment to create thousands of additional jobs in
Ohio. The
America COMPETES Act contains Brown’s
Leveling the
Playing Field 2.0 Act as well as the
CHIPS for America
Act. The package will make a once-in-a-generation investment in
American science, technology and innovation to help the U.S. preserve its
competitive edge.
Last
year, Brown
urged
the Taiwanese government to continue working to mitigate the ongoing
semiconductor chip shortage that has impacted American auto manufacturers,
causing plants to idle and resulting in layoffs for workers throughout the auto
industry’s supply chain.
In
addition to leading the effort to secure tax relief for auto dealers under
Section 473, Brown also recently introduced the
Supply Chain
Resiliency Act, which
would alleviate
current supply chain bottlenecks and prevent future disruptions by investing in
American companies to reduce our reliance on long supply chains and ensure that
critical products are made in America.
Letter was also signed by Ron Wyden (D-OR), Amy Klobuchar (D-MN),
Patty Murray (D-WA), Angus King (I-ME), Catherine Cortez Masto (D-NV), Alex
Padilla (D-CA), Chris Van Hollen (D-MD), Ben Cardin (D-MD), Tina Smith (D-MN),
Richard Blumenthal (D-CT), Jacky Rosen (D-NV), Dianne Feinstein (D-CA),
Tim Kaine (D-VA), Tammy Baldwin (D-WI), Raphael Warnock (D-GA), Debbie Stabenow
(D-MI), Gary Peters (D-MI), and Bob Casey (D-PA).
The full text of the senators’ letter can be found
here.
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