Conference hydra::amiga_v1

4177.0. "On the proposed luxury tax on computers" by ATPS::BARRY () Fri Oct 05 1990 16:33

    The following is Apple's view on the proposed luxury tax for computers,
    but thought the general topic might be of interest. Higher priced
    machines from Apple and IBM will get hit hardest, but it still doesn't
    help most new home computer purchases, including the Amiga.
    
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Note 3807.0       Luxury tax on computers, other high-end items       No replies
MCNTSH::LONG "$ BEAM ME /DIRECTION=UP /BY=SCOTTY"   111 lines   5-OCT-1990 12:15
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I picked this off the net. Submitted for your approval...

Article         3738
From: [email protected] (Morgan Davis)
Newsgroups: comp.sys.mac.misc
Subject: Luxury tax on computers!
Date: 3 Oct 90 18:36:15 GMT
Sender: [email protected]
 
Date:  90-10-03 04:32:43 EDT
From:  RonLichty
Subj:  Tax on computers!
To:    KSUTHER, CecilFret, SteveAdept, MDavis, KennS, GRMORRISON
 
Item forwarded  by  Ron Lichty
Sub:    new computer luxury tax
 
BACKGROUND ON NEW COMPUTER LUXURY TAX
In Washington, members of the Bush Administration, the House of
Representatives and Senate have been meeting in a budget summit to
negotiate a bipartisan plan to reduce the deficit.  They have been
considering various proposals to raise new taxes as part of package. 
One item that should be of concern to the computing community is a
luxury tax on electronics products.  While most of us in the computer
industry originally believed that the tax was aimed at high end TV's,
VCR's, Camcorders, and other consumer electronic entertainment
products, it appears that computers have been included as taxable
products.
 
HOW THE TAX WOULD WORK
The luxury tax is a 10% tax assessed on the value of the following
luxury items over the following threshholds:
 
    Cars over $30,000
    Furs over $500
    Jewelry over $5,000
    ELECTRONICS over $1,000
 
For example, if you purchase a personal computer that costs you $3,000,
you will have to pay a 10% luxury tax on the amount over $1,000. 
Hence, in this example, you will pay $200 (10% of ($3,000-1,000)) in
addition to the sales tax when you purchase the computer at the
register.
 
APPLE'S POSITION
We at Apple Computer feel that extending this tax to cover personal
computers is preposterous.  Computers increase the productivity of
workers, teachers and students.  It is inappropriate to impose a
"luxury" tax on the tools which can boost American productivity.  As a
nation, we must be prepared to manage our affairs in the Information
Age--an age in which computer equipment is not a luxury but a
necessity. Yet, the Congress and the Administration seem to be unable
to recognize the critical role computers now play in the lives of
millions of Americans.
 
In addition, the threshhold for computers is rediculously low.  Only
high-end car models are over $30,000.  Only a small percentage of
jewelry purchased is over $5,000.  But for computers, $1,000 is the low
end of the market.  Most computers sold exceed this amount. It makes
little sense to impose a luxury tax on a college student's investment
in a personal computer while exempting the purchase of a $5,000 Rolex
wrist watch.
 
GAME PLAN
If anybody is concerned about this proposal, telephone calls to
Congressional representatives and senators could be a critical help. 
Interested persons should do the following:
 
    - call their congressional representative's local office to
	register their opposition to the proposed luxury tax on computers.
 
    - ask their representative to voice their concerns to the
	legislators who are negotiating in the budget summit.
 
    - call members of the budget summit in Washington, D.C. to register
	their opposition to the luxury tax:
 
            Capitol Hill Senate: (202) 224-3121
            Capitol Hill House: (202) 225-3121
            White House: (202) 456-1414
 
PARTICIPANTS IN THE BUDGET SUMMIT
 
Rep. Tom Foley (D-WA)
Rep. Richard Gephardt (D-MO)
Rep. Leon Panetta (D-CA)
Rep. Robert Michel (R-IL)
Rep. Bill Frenzel (R-MN)
Rep. Bill Archer (R-TX)
 
Sen. George Mitchell (D-ME)
Sen. Bob Dole (R-KS)
Sen. Lloyd Bentsen (D-TX)
Sen. Bob Packwood (R-OR)
Sen. Jim Sasser (D-TN)
Sen. Pete Domenici (R-NM)
Sen. Wyche Fowler, Jr. (D-GA)
 
Richard Darman (Director, Office of Management and Budget)
Nicholas Brady (Secretary of the Treasury)
John Sununu (White House Chief of Staff)
Roger Porter (Assistant to the President)
 
If people are interested in helping to beat back this proposal, time is
of the essence.  It could be a matter of days, not weeks.  A luxury tax
is very likely to be enacted.   The question is whether or not it will
be extended to computers.
 
UUCP: crash!pro-sol!mdavis           AOL, BIX: mdavis  
ARPA: [email protected]  GEnie:    m.davis42
INET: [email protected]         ProLine:  mdavis@pro-sol
    

    Luxury tax????
    
    I NEED my computer for school!
    
    Yes, I enjoy it too, but it was need first, a hobby second.
    

    Also don't "discount" the fact that most computers over $1k are US
    built, but all the Tawainese clones are less than that.
    
    Jean
    

    I wonder how this applies to bundled systems.  I can just imagine
    trying to convince a dealer to charge me $999 for a system if I
    agree to pay another $999 for a floppy drive :-).
    
    - steve

Well, you can rest a little easier. The proposed budget plan didn't pass.

What looks like it is going to make it through is a "fill in the blank"
budget form, which would allow things like the luxury tax to be created
later. This is the kind of idiocy that comes from trying to deal with a
budget of hundreds of billions of dollars in a couple of weeks.

Note of irony: to convince congress to dedigitate, Bush closed a variety
of government services, including catering services. As a result, there
were no refereshments at Souter's swearing in.

	<mike