AIADA, the American International Auto Dealers Association, turned its attention yesterday to a possible addition to the farm bill currently in the US House of Representatives.

What does this bill have to do with cars? House Democratic leaders want to include a provision that will raise the taxes on the U.S. subsidiaries of foreign-based corporations, and while that doesn't target automakers specifically, according to Cody Lusk, president of AIADA, it would affect the American divisions of companies like Honda, Toyota, and Volkswagen.

According to industry authority AutoNews.com, Mr. Lusk thinks that the tax proposal is an example of protectionism, and feels that it will discourage economy-improving foreign investments and he encouraged House members to vote against the provision. Voting was expected yesterday, but as of this morning, the bill, HR 2419, is still being debated on the House floor. Its goal is additional revenue of roughly $4 billion to help fund farm programs.

AIADA says that in addition to helping create more than 1.7 million jobs, makers of import-brand autos have invested over $36 billion in American operations and plant facilities, with $3.3 billion more projected through the next two years. In addition, they said that the U.S. branches of these over-seas companies support a payroll of $324.5 billion annually, and about 5 million jobs.

The text of the bill is available on the House Agricultural Committee's webpage: http://agriculture.house.gov/inside/2007FarmBill.html.