Mass exodus of wealth from the state of Connecticut coming soon.
The middle class don’t get their hair cut and don’t have pets? What is this tax only for them?
You nailed it.
During the Clinton Administration, there was a federal “luxury tax,” on, amongst other things, new yachts and large sailboats. It was proposed by former U.S. Senator George Mitchell, (liberal democrat), Maine.
The rich started buying USED yachts and large sailboats, and low and behold, the boatyards here in Maine started laying off the guys who built new boats and yachts.....young middle class guys with young families.
Unintended consequences? The “luxury tax” was a disaster.
I can remember when Connecticut didn’t have a state income tax at all....that changed, thanks to RINO Lowell Ricker when he became governor.
At this point, since when has any govenrment official understood the concept of ‘process?’ There are so many ways of making money off of the rich, without taxing them. Of course, that would involve creating a business that the rich can use as opposed to simply taking it. Pity we dont’ tax criminals for hte crimes they commit. Eah crime means a slice off of their welfare.
Connecticut’s Gold Coast basically came into existence when New York State started to tax the rich who lived in Westchester suburbs. So people moved out further, and many went to Fairfield County.
Now evidently Connecticut wants to drive them out, too. All those business HQs that moved out of Manhattan into Stamford, following their officers into Connecticut, will no doubt be heading down to the Carolinas, or someplace else where the economy is not taxed into extinction.
silly.
Most rich people don't earn nearly that much, they just have tons in assets and know how to save, the few who do live their that this would affect will just move a few hours in any direction.
Yes they put a “luxury tax” on yachts, private planes and high priced autos. I can speak to the “tax” on yachts. It was a 10% tax added to the price of all yachts over $200,000. It was a perfect tax-Congress did the analysis and saw how many yachts sold for over $200,000 the previous year-determined the $ value and multiplied it by 10% and wow easy money-$40 to 50 million a year.
OH WAIT! The tax was placed only on brand new yachts built in the United States. Used yachts and yachts built in foreign countries were not covered by the tax. The revenue earned almost zero-foreign builders saw an increase in orders. By the time the increased unemployment compensation was paid to laid off workers, lost sales tax and state income tax was determined-the tax generated a negative amount of tax revenue.
The luxury tax on yachts failed miserably. Many
yacht manufacturers closed up shop when sales
evaporated. Lots of employees were terminated.
Luxury taxes can be avoided by not using the
services. More unemployment ensues. Lower tax
revenues from the formerly employed. More
drain on unemployment insurance funds.
Oh, you mean like when they put boat manufacturers and the
accompanying service and add-on providers out of business?
That simply cut down on boating traffic so elites like the Kennedys
and Kerrys would have less things to drunkenly hit, as in the
case of the former, and less congestion in the case of the latter.
Mike Dukakis tried this as governor of MA, and over a weekend,
a big financial services company moved a big chunk of its data
center to another, less taxing, state. (made sense from a
geo-diversity of operations, too)
Paraphrasing Ronald Reagan, [whatever you tax more you get less of it]. Stupid, marxist liberals refuse to learn this lesson. That’s why they are insane down to their very souls.
..........middle class and poor hardest hit.
"The rich" will just stop buying "luxury" goods and services, and the people who provide "luxury" goods and services will be unemployed.
Good thinking there, Skippy.
Good for the Lembo family. Doesn’t the state of CT understand just how many people they indirectly employ?
Keep this crap up and they will move out of the state to a much more business friendly state and employ that states folks. Guess they haven’t noticed how many wealthy families have left New York for other states. Hmm. Most of that migration has been south.
By the way, we like winter Texans. They spend a lot of cash here from October to April.
If this journalist needed heart surgery and Dr Lembo had to hold his beating heart in her hand- I wonder what he would think she deserved to be paid?
Rex, the Lembo family pooch, for example, racks up $66 in annual grooming services for his ruffled coat. The proposed tax would hike the price of his hair cuts and shampoos by $4.13.
I don't believe that number - too low - most people who have a dog bring them to the groomers 2x's a year and it's over that - this will shut down groomers.
The men of the Lembo family pay $55 per visit to the hair salon. The women pay $90. Altogether, the family spends $2,490.08 annually on haircuts. Add to that total about $160 in proposed state taxes.
Not many people own a 'Flo-bee' or are handy with scissors and a bowl - this price goes up for everyone.
When the family jets to St. Croix for three weeks next winter, they will pay an additional $9.53 in valet services at Bradley International Airport.
Many income brackets fly.
Each summer, the Lembos like to take their children sailing in Long Island Sound. They dock and store their boat at the South Benson Marina for a cost of $2,096.06. Now they would have to pay an additional $133.10 each year.
I know plenty of middle class people with boats - the docks are filled with them
To protect his Mercedes convertible from the winter elements, Tony stores his car from December to April at a cost of $300 a month.That would climb by $95.75.
Lots of people store cars-not just the rich.
When he takes his second car, a Lexus, the one he relies on each day, to the car wash, it would cost him more, too. Tony's penchant for twice-monthly car washes at $19.99 a pop means he would have to shell out an additional $30.46 in taxes next year.
Right....car washes only deal with rich people..... - middle income get their cars washed too - duh
Why was this article written with this spin?
When will these people learn this simple equation?
:}
Not a chance. For that low an annual cost, that boat of theirs can't be anything larger than a puny 15-foot daysailer. That's like claiming that none of their cars are better than ten year old Kias.
I have a 35-year old, 23-foot sloop that I dock and store in Fairfield County, and that costs over $3,000 per year (gulp).
A family bringing in that kind of income would probably have at least a 42-foot sloop, or perhaps even something larger like a 55-foot yawl or even a cat. Figure on at least a factor of two, but more likely a factor of three in annual docking and storage fees, plus lots of additional taxable services just to keep up on maintenance.