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The following is a letter to the editor that I wrote to the Yakima-Herald Republic here in Yakima, Washington. It was published last Wednesday. Hope you enjoy!

To the editor:

The rich can pay more. It is only fair. That was the mantra spoken by Sen. Kennedy, Sen. Mitchell and others when a little tax, with no public hearings, was slipped into the 1990 budget legislation that Bush 41 signed into law. Anything sound familiar? Thirty years later, it is deja vu.

The luxury tax took effect in 1991. It didn’t produce the revenues that were projected, not even close. What it did produce was thousands of unemployed, millions spent in unemployment benefits, millions in lost business revenues, plus some bankruptcies. Did the rich stop purchasing luxury items? Some did, but many went to Europe and other places to buy their yachts, airplanes, furs and jewelry. Did the tax hurt the automobile industry? Yes, the sales of hi-end automobiles nose-dived. In 1992 the tax was repealed on all luxury items except cars, which was phased out over a 10-year period, ending on January 1, 2003.

Here is an economic truism. There is an inverse relationship between tax rates and revenues. Seldom do taxes generate projected revenues, because people make other choices. So, tax those rich who spend their money and employ people. It’s only fair.

Don Parmentier

Yakima