Lessons Of A Tax Fiasco

The Omnibus Budget Reconciliation Act of 1990 contained a new luxury tax on luxury autos, aircraft, jewelry and yachts. Democratic Senators Ted Kennedy of Massachusetts and George Mitchell of Maine both spoke about how the rich would finally be paying for their share.

The tax however, took in less than one half of the projected income. Why? Because fewer people bought the products that were taxed. People bought yachts overseas. The tax cost the government an estimated $24 million in unemployment benefits alone because of the lost jobs in the aircraft and boating industry. Boat Builders, a key industry in George Mitchell’s and Ted Kennedy’s home states were particularly hard-hit with yacht sales dropping 77 percent and builders laying off an estimated 25,000 people.

In 1993, with bipartisan support, the tax was repealed and Kennedy actually proposed a 20 percent tax credit for the purchase of luxury yachts more than 50 feet long in order to stimulate the boat building industry in his state. The initial luxury tax was an expensive lesson in economics, costing the jobs of thousands of American workers.

http://www.ctlawtribune.com/getarticle.aspx?ID=33538

No it isn't It's strong evidence that luxury taxes are a stupid idea
Also why we should withdraw from all free trade agreements and go back to having tariffs

The only concept the liberal left understands is "tax and spend". The real problem is that they don't understand the damage their taxing and spending does.

Just look at the threads and comments they post on here.

Its the same drivel over and over. Obama has spent us into oblivion and we are teetering on another recession.

People aren't spending money no matter if they have a million dollars or 12 cents.

No one has any confidence that Obama has a clue or the backbone to do what is necessary.

He is a puppet on the strings of his liberal elitist benefactors.