I haven't heard much about this important lesson on how "tax the rich" can have a profound impact on the poor. Being new at this, I'll amplify my point with a reply to myself. (FReepmail me if there is a better way to do this)
Note the key point about the impact of the luxury tax on yachts: Boat building, a key industry in Messrs. Mitchell and Kennedy's home states of Maine and Massachusetts, was particularly hard hit. Yacht retailers reported a 77 percent drop in sales that year, while boat builders estimated layoffs at 25,000.
Can you imaging the rhetoric thrown about when this tax was debated? Well, that "we'll only soak the rich" plan put 25,000 poor people out of work and crippled an industry.
Now fast forward to the year 2000 and catch this excerpt from a rant on May 26th on ABC's 20/20 Tax Break Keeps Rich Afloat http://abcnews.go.com/onair/2020/2020_000526_gmab_yachts_feature.html.
Patrick Kennedy of all people "proposed a tax credit for those who purchase an American luxury yacht at least 50 feet long." This is just too amazing. I don't know where to start. Talk about a target rich environment! "Cleaning up after Uncle Ted" "PK courts his Newport constituents" But I digress ... the 20/20 article it goes on to say:
Rich people can go anywhere to buy their boats, he says. What my tax cut will do is hopefully encourage them to buy their boats here.
Here includes boat-building communities in Kennedys district of Rhode Island and in North Carolina, home to companies such as Hatteras Yachts in New Bern, N.C. Hatteras executive Bryant Phillips agrees with Kennedy that there are multiple reasons to encourage the wealthy to buy American-made yachts and, in the process, help preserve the jobs of the people who build them.
You see, every time they buy one of these, Phillips says, they are keeping a thousand families in New Bern clothed, fed, educating their kids. Its a positive industry.
So don't tell me the democRATS don't get it - they know damn well how an economic stimulus works. One boat, a thousand families gainfully employed, paying taxes, feeding the American Dream. $600 isn't going to have this impact. What if the question was do you want $600 or a job? What would the opinion polls show then?
My fervent hope is some Congressional staffer sees this and should Patrick Kennedy open his mouth when the Bush stimulus package is debated, someone rams a yacht down his throat.
Lesson Learned: Sales taxes are powerfully destructive!
The lesson ot the devastating "luxury tax" will be totally lost on California's scumocrats. Trust me. Those pathetic buffoons out there are so self-absorbed in their belly button gazing that when that final swirl of the liberal toilet takes California down like a big turd, they'll be looking for their surfboards.
posted on 01/09/2003 5:00:07 PM PST
by Lancey Howard
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"Look at them, WE"RE going to tax their ass off."
Define rich. Mike Reagan cited gummint's own numbers today and told us that if you make $55 K or more, you are among the top 25% of taxpayers and are rich. If you make $95 K or above you are in the top 10% and are richer. If you make over $313 K you are in the top 1% and are super rich. The RATS want to classify anyone making over $35 K as rich and tax them into oblivion. They also say that those above $35 K don't deserve a tax rebate either. RATS are scum (have I mentioned that before?)
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