Path: utzoo!utgpu!news-server.csri.toronto.edu!mailrus!accuvax.nwu.edu!nucsrl!telecom-request From: Lauren Weinstein Newsgroups: comp.dcom.telecom Subject: Proposed 10% Federal Tax on "Electronic Equipment" Message-ID: <12847@accuvax.nwu.edu> Date: 30 Sep 90 20:39:26 GMT Sender: news@accuvax.nwu.edu Organization: TELECOM Digest Lines: 31 Approved: Telecom@eecs.nwu.edu X-Submissions-To: telecom@eecs.nwu.edu X-Administrivia-To: telecom-request@eecs.nwu.edu X-Telecom-Digest: Volume 10, Issue 700, Message 2 of 7 Greetings. On Sunday, September 30, agreement was reached by the federal budget negotiators on a proposed new budget, including a variety of program cuts and new/increased taxes. Ignoring the other taxes for the moment (e.g. increases in gasoline tax, energy tax, social security taxes, etc.) there is one brand new tax in the agreement that might be of particular importance to readers of this forum. This is a new "luxury" tax of 10%. Details are sketchy, but it apparently is proposed that this tax will apply on items such as "luxury cars", furs, jewelry, and *electronic equipment*. As this message is written, it is unclear what that latter category would include. Would it include telecommunications and computer equipment, or "only" televisions, VCR's, stereos, etc. above a certain selling price? Would it apply only to individuals, or to business use of such equipment as well? Would this tax simply be added on to existing state and local taxes at the consumer level? It might be worthwhile for everyone who is involved in the purchase of "electronic equipment" to carefully track the details of this significant new proposed tax as they come forth, and make their opinions known to their House/Senate members (opinions phoned in *do* get counted by their offices). At this stage, the budget agreement has not yet been approved by Congress, and while the leadership will no doubt wish to have the entire package accepted in one piece, it is not necessarily the case that changes won't be made. It is important that our representatives be informed about the feelings of the technical community concerning these specific proposals. --Lauren--