[DeTomaso] Help! Collector car taxes???? (Rec'd. from a car enthusiast friend)
LaurieFerrari at aol.com
LaurieFerrari at aol.com
Mon Apr 4 15:28:45 EDT 2011
I would hope that SEMA and other national groups would set this guy
straight and ask that he start paying for all the free sh*t he and other
politicians have and get each year. If congress wants to come up with a way to
correct the national debt they can start in their own house and senate.
This guy probably gets chauffeured around in a tax payer paid limo.
Does anyone know when this got started? I would hate to think this the
first time I saw this and it has been around for years and is just getting
recycled.....FJM
Auto Enthusiasts who dodge taxes are in Schumer’s crosshairs.
Washington, D.C. - AP. Senator Charles Schumer (D-NY) held a press
conference today in the Capitol’s rotunda and stated that he is in the process of
drafting a bill that will create a federal tax on all collector, antique,
historic ,special interest, hot rods and race cars. “This country is
operating at a huge budget deficit,” said Senator Schumer, “thanks to the
previous administration’s failure to seek new sources of revenue. We can no
longer continue to just raise the taxes we already have. We are reaching the
point of diminishing returns. We must find new sources of revenue. There
are more than one million collector cars in this country,” said Schumer, “
and many of them are unregistered and untaxed. These vehicles represent
sometimes sizeable assets which often appreciate from sale to sale. Much of
these capital gains remain untaxed. It’s about time these collectors—all
of whom are rich—begin to pay their fair share. I’ve never heard of a
poor person owning a Corvette, Ferrari, Deusenberg or Cobra. ”Citing the
results of this year’s automobile auctions in Scottsdale, Arizona as an
example, where reported sales were in the tens of millions of dollars, Schumer
said, “We’re not talking about rusty old clunkers here. Some of these cars
represent the pinnacle of automotive history. Collectors who buy and
sell them often do so privately. Some transactions are in cash and others
include trades. All of these are under the Internal Revenue Service’s
radar. Well, that will soon end. ”Each state has different laws and
requirements for collector cars. Those which tax them as personal property often use
outdated values. An owner can pay taxes on a car the state determines is
worth $5,000 and then turn around and sell it for$100,000 or more. Until
now, all of this has been the purview of each state. Schumer’s law will
sidestep all state laws by levying a federal tax in addition to anything the
individual states do. This new federal tax will be similar to the present
federal tax on gasoline, which is in addition to whatever a state assesses.
Part of the Schumer law includes the IRS opening up a special department
to deal with collector cars. Values will be calculated annually and owners
will be required to list all cars they own on their 1040 tax form.
Because not all vehicles are registered ,and thus may not be known to the
individual states’ motor vehicles departments—especially race cars which are not
driven on public roads—the IRS will make use of the existing network of
individual collector car enthusiast organizations across the country. Many
of these car clubs maintain accurate registries which detail each car by
its vehicle identification number and present or last known owner and their
location. Assembling an all-“All the News That’s Fit To Print”
Late Edition
One hundred years ago today there were 100 horses for every automobile in
this country. inclusive federal database in conjunction with these
registries will be one of the first steps in implementing the new law. Once the
database of owners is cross-referenced with an annual index of current
collector car values, every collector or race car in the country can be taxed at
a fair rate. Initially, Schumer says, it will be10% but that would rise
depending on the type of car, number produced and condition. “Collectors are
willing to pay more for certain cars,” said Schumer, “because of their
history or the small number that were
produced. These factors increase a vehicle’s worth to buyers, so why
should these cars not be taxed at a higher rate? It’s no different than our
current progressive income tax rate. ”It is estimated that an annual 10% tax
on all collector cars presently owned by American taxpayers—at their
prevailing market value—would be more than $250,000,000. In four years the coffers
of the federal government could be fattened by a billion dollars. “That’s
only a conservative estimate,” said Schumer. “Nobody knows exactly how
many collector cars are out there. But by this time next year, WE will
know. Owners of these cars will finally have to pay up. Their free ride—on
the backs of the poor—is over.”
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