In 1991 the Federal government imposed a 10 percent excise tax on yachts costing more than $100,000. This tax:

A. failed to bring in the expected amount of tax revenue because the demand for yachts was more price elastic than the government estimated.

B. brought in more tax revenue than expected because the demand for yachts was less price elastic than the government estimated.

C. failed to bring in the expected amount of tax revenue because the demand for yachts was less income elastic than the government estimated.

D. brought about an increase in the demand for yachts and stimulated employment in the boat-building industry.

Suppose that instead of income taxes the government taxed us on things society generally considers vices and frivolities? So, instead of collecting taxes from everyones income we put a tax on things like alcohol, cigarettes and porn? It wouldnt even have to be a very large tax, a 1 cent tax on every soda sold in the United States would bring in billions of dollars of revenue.
Also, we could tax things like yachts. Unless its your livelihood, like if you are a fisherman for a living, we put a tax on yachts. Or unless you have so many children, there will be a tax on mansions. I mean, unless you can prove you need that frivolity, you must pay a tax on it. A tax on any car that gets less than 30mpg. A tax on any jewelry that costs more than a hundred grand. That kind of thing. What do you think?
Just in case you think I’m being unfair, I smoke about a pack and a half a day, I drink every weekend and I’d kill for a sail boat. I also eat fast food from time to time, which I think we should tax the living crap out of. That would bring in some revenue in the fattest nation in the world.

The 1990 “yacht tax” caused a large deadweight loss, because demand for luxury yachts made in the United States is _______.
very elastic
very inelastic
perfectly inelastic since “rich” people will pay whatever is necessary
perfectly elastic

Rangell failed to pay income taxes on the rental income from his villa on the Punta Cana Yacht Club for at least three years, to the tune of $75k. He agreed to pay that amount by May 15 (73 days ago)…

And remember that San Fran Nan said his House Ethics Committee report would be released in January – 180 days ago

Why Pelosi giving Rangell a free ride? Is that OK with you?

different ways of buying a yacht

I imagine it’s mostly Bush supporters who can afford beach front property, It will be true justice when Bush’s policies leave them ,in some cases, with only one usable home, good thing they all got yachts with their tax cuts.

The 1990 Congressional Budget slapped a luxury tax on yachts to get more money from the wealthy. Result? People bought fewer boats. In its first year and a half, the yacht tax raised a pathetic $12,655,000 for the Treasury – enough to run the Agriculture Department for a little over two hours. Meanwhile, the tax contributed to the general devastation of the boating industry. It was estimated that 25,000 to 30,000 mostly blue-collar jobs were lost.

http://query.nytimes.com/gst/fullpage.html?res=9F0CE7D81731F935A2575BC0A965958260

http://findarticles.com/p/articles/mi_m1571/is_n34_v9/ai_14466811

Pat M – Sorry to break it to you but it was the Carter Administration and a Democratic Congress that enacted the yacht tax.

http://hubpages.com/hub/Problems-with-Taxing-the-Rich

Success in America will not go unpunished

Please be detailed if possible

I was wondering, How much to MDs really make on average after the taxes??
I know that the pay differs for different specialties, so could you give me a ball park number for general surgeons, physicians, and anesthesiologists?

Does this really allow the dream life that many illustrate (nice house, yacht, wine and nice restaurants every night), or is life more down to earth??

I work for a manufacturer and make only a couple dollars over minimum wage, along with most of my co-workers.

The owner of our company has a multimillion dollar house, yacht, expensive cars, and takes lavish trips all over the world. He even bought a new house for his parents.

Why would anyone whine that he should have to pay higher taxes to help take care of us “poor” disposable employees so that we can get healthcare?