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Does anyone remember the success of G.H.W. Bush's luxury tax?

Bush agreed to sign a 10% luxury tax on auto's, furs, boats and jewelry etc.. The brilliant economists projected $6 billion yearly in revenue. The actual brought in from the tax was a mere$53,000 at a cost of thousands of lost jobs (and revenue)including 480 high paying positions at beechcraft.

Just how successful do you think the jet tax will be?

Answer Question

Asked by Carpy at 7:05 PM on Jul. 11, 2011 in Politics & Current Events

Level 39 (114,053 Credits)
Answers (22)
  • – collapse
    No, I don't. I was too involved in raising three kids, working,going to school and being a 'good wife', along with all the rest, to keep track of Bush SENIOR's Taxes. Why don't you enlighten me with a LINK and some information.

    Answer by minnesotanice at 7:22 PM on Jul. 11, 2011 (hidden) + expand

  • I recall Bush Sr. promising, "read my lips, no new taxes."

    Answer by -Eilish- at 7:28 PM on Jul. 11, 2011

  • I most certainly do. Promoted and passed by a democrat congress.

    Answer by annabarred at 7:35 PM on Jul. 11, 2011

  • Bush Will Try to Kill Luxury Tax on Yachts
    January 27, 1992|ART PINE | TIMES STAFF WRITERPresident Bush plans to ask Congress on Tuesday to repeal the luxury tax on yachts that lawmakers enacted in late 1990 and may seek to end similar levies on private aircraft, automobiles, jewelry and furs, White House officials and lawmakers said Sunday.

    The White House is expected to portray the move as a bid to help restore jobs. Yacht builders have reported that their sales have fallen off sharply since the tax was enacted, and manufacturers of luxury automobiles have voiced similar complaints
    THIS source ,the LINK posted , says he wanted to KILL THE LUXURY TAX. I am confused now......Did he propose it or want to kill it???

    Answer by minnesotanice at 7:54 PM on Jul. 11, 2011

  • Why were there so many job losses?

    Answer by UpSheRises at 7:55 PM on Jul. 11, 2011

  • Considering he was president in 1990, I would say he passed it under pressure of a dem congress and then knew it needed repealed after the downfall from passing it.

    Comment by Carpy (original poster) at 8:05 PM on Jul. 11, 2011

  • Why were there so many job losses?

    People changed their behavior and put off buying the yacht or jet or jewelry and that curtailed the manufacturing and sales of these items which forced companies that contributed to the manufacture of said item to lay off employees. Businesses peripheral to the manufacture of the luxury items also saw a decrease in business and laid off more employees. The federal government then had to pay unemployment benefits to the employees. It was a Democrat debacle of the first order. Bush should not have signed the bill in to law after the Democrats passed it. Luxury taxes destroy employment.

    Answer by annabarred at 8:33 PM on Jul. 11, 2011

  • George Will explains the economic consequences of this luxury tax:

    According to a study done for the Joint Economic Committee, the tax destroyed 330 jobs in jewelry manufacturing, 1,470 in the aircraft industry and 7,600 in the boating industry. The job losses cost the government a total of $24.2 million in unemployment benefits and lost income tax revenues. So the net effect of the taxes was a loss of $7.6 million in fiscal 1991, which means the government projection was off by $38.6 million.

    Answer by annabarred at 8:36 PM on Jul. 11, 2011

  • I'm not sure cancelling a write-off for corporate jets is the same thing as actually raising a tax though. If you can afford a corporate jet then you can afford the tax. If you can't afford the tax that you'll just have to take a public plane like the rest of us losers. Wah wah wah.

    Answer by UpSheRises at 8:59 PM on Jul. 11, 2011

  • All carefully calculated for someone's pocketbook. The tax will cause serious loss to the businesses and their stocks will plummit. "Someone" can buy shares dirt cheap and reap a fortune when the tax is repealed and business booms.

    ...note to jet maker prepared to buy.

    Answer by yourspecialkid at 9:02 PM on Jul. 11, 2011

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