US Congress may re-establish the Luxury Tax
Monday, December 11, 2006
There are suppositions that the US Democratic Congress may re-establish the luxury taxes, which were already once introduced in the 1990s. The suppositions resulted in the National Association of Watch and Clock Collectors commissioning a report on various tax issues.
Material goods such as jewelry, watches, expensive furs, jet planes, boats, yachts, and luxury cars had already been subjected to additional taxes back in 1990. After 3 years these taxes were repealed, though the luxury automobiles tax was still active for the next 13 years.
Rodderick A. DeArment, a representative of law firm and lobbyist Covington and Burling, guided the report. The report outlined the fact that, in 1993, the Congress did not collect as much money from the luxury taxes as it had predicted. It also stated that although its ravaging effect on employment in several industries was sensible, “the turnover that occurred in Congress made it possible for the new group to learn the same lessons again”.
The luxury tax could produce unpredictable effects for the watch industry and the report was meant to inform the members of this branch about the effects of these taxes on this luxury goods’ industry.