[APFel]

Ah, Wesley, Wesley, Wesley...

And what of the poor working class stiffs that MAKE the "luxuries"? Yachts and limosines aren't built and assembled by millionaires, you dolt.

[BookmanTheJanitor]

Few Mourn Demise of Luxury Tax
Daily Policy Digest

Tax Issues / Effects Of Tax Cuts

Monday, January 06, 2003

The last vestige of the 1990 federal luxury tax disappeared on January 1, 2003 -- as the tax on cars expired. Economists had come to appreciate just how destructive the tax was only a few years after it took effect in 1991 and politicians began to repeal sections of it as early as 1993.

Starting in 1991, Washington levied a 10 percent luxury tax on cars valued above $30,000, boats above $100,000, jewelry and furs above $10,000 and private planes above $250,000.

Yacht retailers reported a 77 percent drop in sales in the first year, while boat builders estimated layoffs at 25,000.
The tax took in $97 million less in 1991 than had been projected -- simply because people stopped buying items subjected to it.
All but the car tax was repealed in 1993 -- and in 1996, Congress voted to phase that out too.
Some tax analysts point out that soak-the-rich tax schemes can backfire and leave the federal Treasury -- as well as taxpaying workers -- worse off than they were before the meddling began.

Source: Editorial, "Good Riddance to the Luxury Tax," Wall Street Journal, January 6, 2003.

[goldstategop]

When Congress passed the "luxury yacht" tax back in the early 90s, they meant to punish the rich for owning items of conspicuous consumption. The law of unintended consequences emerged and instead of the rich taking the hit, it was the blue collar working stiffs who built and serviced the yachts. They were all put out of work since the rich went abroad to find yachts to buy without having to pay the tax Congress held they ought to pay. So you see, "class warfare" backfired big time. If this history is any indication though, you can bet the Left has learned nothing from the fiasco.