Volume 2 Issue 62
2009

Wrong Time for a National Sales Tax

Once considered unthinkable, a U.S. sales tax is getting a fresh look. The new tax is seen as a way to reduce deficits and fund health reform.

With budget deficits soaring and the administration pushing a trillion dollar-plus expansion of health coverage, some Members and staff are taking a new look at a money-making idea long considered politically taboo, a national sales tax. Common around the world, including Europe, called a value-added tax or VAT has not been seriously considered in the U.S. But, advocates of the tax say no other options can generate the kind of money the nation needs to fund the deficit and health care reform.

A VAT is a tax on the transfer of goods and services that ultimately is borne by the consumer when an item is purchased. Highly visible, it would increase the cost of just about everything, from eggs, to lobby fees, to boats. The tax is highly regressive, falling heavily on the backs of the poor and working class.

The surge in interest in VAT is powered by the extraordinary depth of the nation's money troubles. The federal budget deficit is projected to approach $1.3 trillion next year. The Treasury is borrowing 46 cents of every dollar it spends.

President Obama has said he wants to raise the taxes for high earners and impose new levies on business, but it is considered by Washington policymakers those moves would not generate enough cash to cover the cost of health care, much less balance the budget.

WHO:
Interested manufacturers, dealers and other marine businesses

WHAT:
Free conference call to provide information and allow participants to ask questions about SBA loan programs. The call will feature:

• Grady Hedgespeth, SBA's Office of Financial Assistance and other SBA staff
• Jim Coburn, National Marine Bankers Association
• Cindy Squires, National Marine Manufacturers Association (moderator)

WHEN:
TOMORROW, Wed., June 3, 2009, 2:00 pm - 3:00 pm ET

Participants will be given an opportunity to ask questions at the end of the call. However, those who cannot attend or want to submit questions ahead of time should email them to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

WHERE:
Via teleconference. Participants should dial in to 866-740-1260 and enter code 3702101# a few minutes before the start time. No pre-registration is necessary. The call will accommodate the first 100 callers.

CONTACT:
Cindy Squires, 202-737-9766; This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . To download a fact sheet on SBA loans, click here.

MRAA Asks Dealers to Thank White House

In an announcement dated May 28, the Federal Small Business Administration announced a government guaranteed loan program for boat floor plan financing. For more information, the SBA has provided a copy of their press release, information about the new program, and frequently asked questions on its website, sba.gov/floorplanfinancing/. Under the Dealer Floor Plan pilot program, $160 billion will be made available through lines of credit under the SBA 7 (a) program. The DFP loans will be made through SBA lenders for titled inventory. The program will run through September 2010, at which time the SBA will make a determination of whether or not to extend the program.

"MRAA is very excited about the decision of the SBA and the White House to allow federal government loan guarantees for many boat dealers. The program goes into effect on July 1, but we recommend dealers learn as much as possible and apply early for the guarantees. This program is badly needed in our industry and will help many dealers at a critical time," said Ed Lofgren, MRAA Chairman.

MRAA asks dealers to thank the President for supporting our industry and approving the SBA proposal. Go to www.whitehouse.gov and click on the "Contact Us" button, enter the required information, and simply write a brief thank you note.

Dear MRAA Member,

I know you have at least considered the idea of becoming a Marine Industry Certified Dealer in the past. Well, things have changed, and I would like to give you an update. Please take a look at the information listed below. As you read, I would ask you to consider the first step by participating in a new webinar workshop only. It is just $500 - with no travel required, and with no continuing commitment beyond it. Today thousands of customers are visiting the Discover Boating website and are seeing who is a Certified dealer and who is not. As you know, given the option almost 80% of consumers would be more likely to do business with a Certified dealer.

In response to the times, there is a new focus for Marine Industry Dealership Certification. Obviously during this economic downturn dealers are looking for innovative ways to lower their costs, become more efficient, and try to find new revenue opportunities in service and sales. In response we have slashed the costs of overall certification and also have developed a new direction and content for Certification for dealers that is working well. Today, a number of dealers are taking advantage of these changes as a very inexpensive but powerful way to help insure that they will survive in rough times.