Taxing collector cars and Rolexes in the USA - New Bill propsed in Congress

[springer]

I got this article from The Drudge Report. It is a must read for all of us with collector watches, cars etc. So much for owning a Shelby and a Rolex anymore...or any less!

Sections within the article were highlighted by me.

Senator Eyes Collector Watches, Cars as Revenue Source
New York Times article Mar.28, 2011

Auto Enthusiasts and Collectors 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, watches, hot rods, race cars and other collector items. "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 sizable assets which often appreciate from sale to sale. Much of these capital gains remain untaxed. What’s more, there is a huge market for collector watches, to include vintage Rolex models that fall in to the same category as these cars. 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 Rolex, Patek, Corvette, Ferrari, Deusenberg or Shelby." 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 collectables. Those which tax them as personal property often use outdated values.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. The same holds true for vintage Rolexes, that initially sold new for a few hundred dollars and now fetch anywhere from 20 to $50,000. 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 and other collectibles. 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-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. There are also many forums and clubs that deal with antique or vintage Rolex watches where thousands of dollars exchange hands daily. Nobody is paying any taxes on their profits from these watches when they change hands, Initially, Schumer says, it will be 10% but that would rise depending on the type of watch or vehicle, number produced and condition. "Collectors are willing to pay more for certain collectibles," said Schumer, "because of their history or the small number that were produced. These factors increase the worth to buyers, so why should these collectibles 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, Rolexes and other collectibles 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 buyers and sellers are out there. But, by this time next year, WE will know. Owners of these items will finally have to pay up. Their free ride—on the backs of the poor—is over."

[usbzoso]

April Fools Day!?

[TKB]

Originally Posted by usbzoso

april fools day!?

+1

[springer]

Originally Posted by usbzoso

April Fools Day!?

I don't know about that, but anything Schumer is involved with is a joke to most of us anyway. What a bozo!

[harry in montreal]

I think mr schumer should focus more on how he spends ny's tax dollars and not how he can expand the state's tax revenue base. That being said, we need to be aware of the current tax rules. States are bankrupt and are looking for money everywhere and have become very aggressive. Big ticket cash transactions are never a great idea. Harry

[Dr. Robert]

Bah humbug, they will have to pry my Rolexes off my dead wrist after I take a few of those revenuers with me.......I usually don't give a rat's behind about politics....but I may get medieval & militant if they f with my watches!
Those S.O.B's get enough tax money from me.
Bah humbug

[usbzoso]

this is America ... we dont tax people that can afford Rolex and luxury car collections ... just tax the poor people come on!

[springer]

Originally Posted by usbzoso

this is America ... we dont tax people that can afford Rolex and luxury car collections ... just tax the poor people come on!

I agree. Tax 'em all and tax 'em more. It won't be long before they tax your taxes!!!!!!!!!!!

[Dr. Robert]

if you drive a car, I'll tax the street
if you try to sit, I'll tax your seat
if you get too cold, I'll tax the heat
if you take a walk, I'll tax your feet

[usbzoso]

haha The Beatles - Taxman ... bloody brilliant!

[LightOnAHill]

Their free ride—on the backs of the poor—is over.

This is the crap that infuriates me!!!

Their own argument is only true when seen in reverse -the "poor" (not-working, "gimmie my free shit" crowd) are getting a free ride on the backs of taxpayers.

Free ride. . . At some point, there won't be enough to tax to pay the wellfare, and then they'll just start taking property and selling it, and when we refuse, the'll tell the poor, "Oh, we want to give you wellfare, but THEY won't pay their share of the taxes, and they're the ones who have your wellfare." Then they'll have the poor people come get the property for themselves.

It's class warfare, plain and simple.

[dcash0615]

Good luck tracking the cash sale of high end watches sold outside the public eye. There are way to many other sources of revenue that offer a more lucrative income stream that would be easier to go after.

[Puffy]

April fool's? Day too late?
I guess it would make sense as profits are capital gains which are taxable in most countries....

[Jason71]

Originally Posted by LightOnAHill

This is the crap that infuriates me!!!

Their own argument is only true when seen in reverse -the "poor" (not-working, "gimmie my free shit" crowd) are getting a free ride on the backs of taxpayers.

Free ride. . . At some point, there won't be enough to tax to pay the wellfare, and then they'll just start taking property and selling it, and when we refuse, the'll tell the poor, "Oh, we want to give you wellfare, but THEY won't pay their share of the taxes, and they're the ones who have your wellfare." Then they'll have the poor people come get the property for themselves.

It's class warfare, plain and simple.

We don't pay our fair share of taxes. Gimme a break. They are taxing some of us at a rate of 40% with income taxes. I own an Anesthesia business and I pay taxes for the business, and then I also pay personal income taxes. Believe me........I am getting no free ride and I am paying MORE THAN MY FAIR SHARE.

[buke45]

Cars are harder to hide, the problem for us watch "collectors" will be the insurance Forms will tell on us : (

[Rolex116520]

Originally Posted by usbzoso

this is America ... we dont tax people that can afford Rolex and luxury car collections ... just tax the poor people come on!

You guys complain about taxes in America ?? Try to make a living in Europe

[mtrunner]

Talking taxes is politics and it is a no win situation. Some people think they pay too much, other not enough.

But talking about taxing old cars and watches is ridiculous. It would be beyond ridiculous to make people pay 10%a year on their collections.

[beowulf566]

This is a class war plain and simple. They want to take and take and take until we are all poor. If they can make us all dependant on garbage social programs then we will have to keep voting in socialists to keep us fed I wonder how many of them will duck paying this tax themselves
Rant over....and sorry about the politics. Lets just say this makes me and I am sure the rest of you more than a little upset.

[bluemartinifan]

Part of the Schumer law includes the IRS opening up a special department to deal with collector cars and other collectibles.

and of course - the idiots will have to set up ANOTHER gov agency to oversee this invasion of our private lives.

[bluemartinifan]

Originally Posted by springer

I agree. Tax 'em all and tax 'em more. It won't be long before they tax your taxes!!!!!!!!!!!

THANKS for sharing John
at 7:30 am Dallas time - I think I will now add some vodka to my orange juice ...

[77T]

This thread really belongs in another section of TRF - it's called Jokes & Cartoons

The source of this elaborate April Fool's Day hoax is at: http://www.saac.com/files/newsletter...s-04-01-11.pdf

Car forums are spreading it mostly - and Polka clubs

If you think that Senator did propose such a tax he would have released it on his website where he announces all his proposals: http://schumer.senate.gov/new_website/releases.cfm

[Dan Pierce]

6.CONTROVERSIAL TOPICS OR POSTS such as those relating to politics, race, culture, religion, sexual orientation or discrimination, violence (toward persons or animals) will be subject to the final and absolute discretion of the Moderators to be immediately locked and/or removed without notice to any member. No gun, knife, weapon threads or pictures of such since we are a worldwide forum and many members are not comfortable with this type of material. Infraction points and a possible lifelong ban will inevitably accompany such posts or threads.
dP

[77T]

The Mods need to put this thread out of its misery...

[Justjosh]

People are still posting this on forums today... sigh

[Cru Jones]

Originally Posted by Puffy

April fool's? Day too late?
I guess it would make sense as profits are capital gains which are taxable in most countries....

This......Income is income, no? I suppose the reverse would be true, too......Suffer a loss on your collection and get a tax write-off.

[Brushpup]

I love the topic, but its a loser thread guys....See Dan's post.

[Watch Professor]

If you read the opening statement, there's no way any politician (well maybe Backmann or Palin) would phrase an announcement like that. So it's obviously an April Fool's joke. Reading the many posts responding to this thread, now we see why no politics on the Forum.

[Rockrolex]

Dan's right. So endth this thread.