The recent tax bill has been controversial, but it could extend a boom in U.S. auto sales.
New car sales are expected to be above 17 million. The sales numbers are not expected to be above 2016's record year, but something close to 2015's sales. The sales boom has exceeded industry expectations and the party could roll into 2018, thanks to the tax bill.
"The additional spending power that most households will have due to tax reform should result in a continued 'move up' in what consumers purchase," said Jonathan Smoke, Cox Automotive's chief economist, in a statement.
As for U.S. automotive manufactures, the "Here America" organization urged congress to adopt the Tax Cut and Job Act (H.R. 1). The pro-growth reforms will encourage additional investment in U.S. manufacturing and support American job creation."
Here America is an initiative of the Association of Global Automakers to increase public education about the importance of international automakers to American job creation, economic growth, technological innovation and strong communities.
The contributions of international automakers and dealers are integral to the success of today’s U.S. auto industry, directly employing 1.29 million Americans in the auto industry and an additional 7 million indirect workers.
As a result of extensive advocacy by the National Society of Professional Engineers and the engineering and architecture community, engineers could also benefit from the tax reform. Engineering firms could be subject to the limiting provision that applies to other service businesses.
The bill's pro-growth and improved incentive to invest in new equipment and factories has no choice but to benefit those in automotive industry.