Posted on 11/20/2014 10:52:18 AM PST by Oldeconomybuyer
Venezuela will increase taxes on luxury goods, alcohol and tobacco to help shore up the government's finances, the top tax official said, as falling oil prices threaten the OPEC member's coffers.
Buyers of luxury goods, including cars worth more than $30,000, will pay an excise tax of 15 percent, up from 10 percent, tax chief Jose David Cabello said late Tuesday during a televised ceremony with President Nicolas Maduro.
The measures, part of a package of 28 laws Maduro decreed to bolster the country's economy, increase tax rates on products such as wine and cigarettes while eliminating some tax benefits available to financial institutions.
"Who pays luxury taxes?" Cabello said during the ceremony. "People who buy yachts, planes, or large properties - people that make excess use of money."
(Excerpt) Read more at reuters.com ...
Luxury in today’s Venezuela is defined as having toilette paper in the bath room.
The IRS will increase taxes on luxury goods, alcohol and tobacco to help shore up the government’s finances, the top tax official said, as falling oil prices threaten the OPEC member’s coffers.
Buyers of luxury goods, including cars worth more than $30,000, will pay an excise tax of 15 percent, up from 10 percent, tax chief Jose David Cabello said late Tuesday during a televised ceremony with President Baraq Obola.
The measures, part of a package of 28 laws Obola decreed to bolster the country’s economy, increase tax rates on products such as wine and cigarettes while eliminating some tax benefits available to financial institutions.
“Who pays luxury taxes?” Cabello said during the ceremony. “People who buy yachts, planes, or large properties - people that make excess use of money.”
That's just priceless....
Dictatorial decrees...coming soon to a country near you.
Communists. Driving capital from their countries for 97 years.
Obummer looks on with envy.
He is a dictator. Any pretense otherwise went out the window when the “Enabling Law” was passed, yes it was titled the same way as the one that Germany passed in the 30’s
Buy stock in Venezuelan Black Market, Inc. It will be a growth industry soon.
1. It won’t bolster state coffers.
2. It will destroy those businesses that sell and maintain ‘luxury’ goods, thus putting all those people out of work.
3. Government outlays for social support to the newly unemployed will exceed luxury tax revenues.
4. All of this will be ‘unexpected’.
America enacted a “luxury tax” in the 70’s - I think under Jimmuh Carter. Sales of RV’s, yachts, jewelry, you name it all cratered. It may be the only federal tax ever abolished.
Rich people being taxed is always attractive to government because they can always define 'rich' down and down and down ... .
Err, no, as bad as JC was, this was not his idiocy, it was George Herbert Walker Bush (41) in 1990 and he never recovered from it. No matter how you look at it, 'Poppy' was PLAYED by the Dems into believing that they would, GASP!, restrain their spending if he would violate his 1988 campaign promise of "No NEW TAXES!"
Amongst the provisions of the law; The act imposed a 30% excise tax on the amount of price over $30,000 for autos, $100,000 for boats, $250,000 for airplanes, and $10,000 for furs. The luxury boat business almost died completely in the US until the excise tax was repealed in 1993. It basically was a disaster as the usual liberal idiocy of inflexible spending was proven totally wrong (again!) when "the rich" chose not to spend or not to spend in the US.
What and who will stop Bammy from doing the same thing? They already do with endless regulations.
“People who buy yachts, planes, or large properties - people that make excess use of money.”
...
That would exclude the Chavez extended family. They don’t buy, they steal.
Perhaps that's a reason Senate Majority Leader George Mitchell resigned his seat and didn't serve out the rest of his last term. Mitchell pushed the luxury tax, but ironically it devastated the boat manufacturing business in his own state of Maine.
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