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ATR Highlights EDSTAR in House Testimony

WASHINGTON, DC -- On June 1st, Grover Norquist, president of Americans for Tax Reform and a member of the CART coalition, testified before the House Judiciary Committee’s Subcommittee on Regulatory Reform, Commercial and Antitrust Law on the importance of passing the End Discriminatory State Taxes on Automobile Renters Act (EDSTAR). 

“Over the last several decades, Congressional action has been needed to prevent discriminatory taxes against specific industries. Not being considered today is H.R. 1528, the End Discriminatory State Taxes for Automobile Renters Act (EDSTAR) introduced by Representatives Sam Graves and Steve Cohen. If passed, EDSTAR would put an end to new, discriminatory state taxes on rental car companies and their customers. In terms of preventing states from exporting taxes on to people who could never vote in their elections, I hope this committee or another committee of jurisdiction will consider the merits of these bills as well.”

EDSTAR legislation was introduced in the House of Representatives earlier this year by Representatives Cohen and Graves and Senators Blumenthal and Kirk in the Senate. Mr. Norquist’s testimony highlights the importance of passing legislation to end discriminatory rental car taxes.

Rental car taxes across the country harm businesses and consumers alike. These taxes increase travel costs, raising prices for families and many small businesses. Insurance rates rise because coverage typically provides for rental cars when repairs are necessary. And since rentals account for 1.6 million new vehicle sales, nearly 10 percent overall, the auto industry and the jobs it supports are profoundly affected.

CART will continue advocating for EDSTAR throughout the legislative process and is counting on CART coalition members, the bill's sponsors and co-sponsors to continue championing the issue.

CART partners with organizations from across the political spectrum that include some of America's leading companies, policy organizations, labor and consumer advocate groups, such as American Society of Travel Agents, Americans for Tax Reform, the National Urban League, United Auto Workers, Property Casualty Insurers Association of America and National Consumers League. CART is dedicated to passing fair policies that will grow the economy and remove barriers to consumers and businesses alike and supports congressional action that would put a stop to increasing rental car taxes across the country.

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