srp@vision5.anatomy.upenn.edu (Samuel R. Peretz) (10/10/90)
In article <30801@netnews.upenn.edu>, freeman@grad1.cis.upenn.edu (Jon Freeman) writes: |> |> ------- Forwarded Message |> |> From: boris@ai.mit.edu (Boris Katz) |> Date: Mon, 8 Oct 90 17:32:25 EDT |> To: all-ai |> Subject: you didn't know you were living so luxuriously... |> |> |> ------- Forwarded Message |> |> Received: by shasta.Stanford.EDU (5.57/4.7); Thu, 4 Oct 90 16:43:06 PDT |> Date: Thu, 4 Oct 90 16:43:06 PDT |> From: avra (LaNae Avra) |> To: csl-everyone@shasta |> Subject: Luxury Tax on Computers |> Status: R |> |> |> 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 the 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 ridiculously 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. |> |> |> |> |> |> |> |> ------- End of Forwarded Message |> |> |> |> |> |> |> ------- End Forwarded Message I can not agree emphatically enough!! If you care about the future of computing in America, CALL YOUR CONGRESSMAN. Let's not sit idly by while congress once again imposes taxes that are ludicrously lopsided! <=======================================================> < Samuel R. Peretz > < 126 Anatomy/Chemistry Bldg. \ / > < University of Pennsylvania ------- > < School of Medicine | 0 0 | > < Department of Anatomy | V | > < (215) 898-8048 | === | > < srp@vision3.anatomy.upenn.edu ------- > < aka sam@retina.anatomy.upenn.edu > < aka peretz@grad1.cis.upenn.edu > <=======================================================>