The dealers pushed hard. "Franchised automobile dealers do not have access to equity markets, so floor plan financing is a necessity, not a choice," the organization said.
Paul's amendment, the association wrote in a message to its members, "would preserve "the full deductibility of floor plan financing for a retailer of high-cost inventory such as vehicles, boats, farm equipment, etc., recognizing that limits on floor plan deductibility would disproportionately harm small businesses, particularly during an economic downturn."
NADA President Peter Welch had appealed to Senate Majority Leader Mitch McConnell, R-Ky., contending that the change would impose "unreasonable burdens" on automobile sellers: "Small-business dealers should not be treated the same as large corporations that choose debt over equity for tax purposes."
Paul hailed the passage of the Senate tax bill, but called for lawmakers to go further.
"While I still would have preferred larger cuts, this bill provides a foundation on which to continue building," he said after the bill cleared the Senate by a 51-49 vote, largely along party lines. "Today marks a victory for giving the American people back more of their own money and reforming an archaic tax code."
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