Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!sdd.hp.com!wuarchive!udel!haven!mimsy!mojo!russotto
From: russotto@eng.umd.edu (Matthew T. Russotto)
Newsgroups: comp.sys.mac.misc
Subject: Re: Luxury tax on computers!
Message-ID: <1990Oct4.203906.3559@eng.umd.edu>
Date: 4 Oct 90 20:39:06 GMT
References: <4797@crash.cts.com>
Sender: news@eng.umd.edu (The News System)
Organization: College of Engineering, Maryversity of Uniland, College Park
Lines: 41

In article <4797@crash.cts.com> mdavis@pro-sol.cts.com (Morgan Davis) writes:
>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
> 
>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.

Would this apply to business purchases or only personal purchases?
(I'm just looking for loopholes....)

I think it is time for computer manufacturers to start selling computers
in separate modules of $999 or less each...
(Mac IIfx:
	Blank logic board	$20
	CPU			$300
	FPU			$200
	Other assorted electronics	$<999
	Installation (required)	$The Rest

Since installation isn't electronics, it isn't subject to luxury tax, right?)
(or have they thought of this loophole already)
--
Matthew T. Russotto	russotto@eng.umd.edu	russotto@wam.umd.edu
      .sig under construction, like the rest of this campus.