WalMart (Second Half)

This is the second half of my comment on WalMart:Liberals believe in static economics, but the world operates on dynamic economics. 

The great example was the Luxury Tax (1991-1993) …liberals multiplied the number of yachts, autos, furs, jewels and private airplanes times the tax and predicted a huge tax income. Of course it brought in almost nothing in additional taxes — luxury auto sales dropped, yacht buyers went to Spain, Sweden and Hong Kong, and plane buyers went to Brazil, almost bankrupting Cessna. 

One break in what was to be a five years year tax, came when yacht builders in Main and Massachusetts told Senator George Mitchell of Main, and Edward Kennedy of Massachusetts that their business was off 77% and the U.S. had laid off some 25,000 employees. Viking Yachts, the nation’s largest yacht builder, went from 1,400 employees to 68 employees.

Senators Mitchell and Kennedy, who were quoted as saying that the Luxury Tax would make the rich pay their fair when they led the fight for the Luxury Tax, quietly voted for the repeal of that tax several years early when it was obvious to EVERYONE that the Luxury Tax was a job-killer, and a net tax killer as well when unemployment benefits were figured in.

Economics does not appear to be a Democratic Party strong suit, although economic demagoguery certainly is…and, although I suspect the political leaders know better, they just can’t help themselves when it comes to committing demagoguery for votes. After all, there are new generations who have never heard of the 1991 Luxury Tax, the state of public education being what it is.

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