Federal COBRA Tax

[N2VENOM]

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.....


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 Those which tax them as personal property often use outdated values.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.”

[392cobra]

He is working very hard for us and you aren't paying your fair share.

[dmorse]

I belive this was a poor attempt at an April Fool's joke.

[rodneym]

I don't agree with this Senator one bit.
But would our replicas fall in to this?

The way we have to register cars in CA, we're paying our share, MUCH more in fact.
I pay registration on my daily driver. That allows me 24/7 access to the roads. If I buy a $100k fun car, I have to pay registration based on that cars value, yet I can't possibly 'buy' any more time or space on the roads. And the more cars I have, the more I'm being taxed and the more off balance it becomes. The wealth is already being redistributed without cocamame schemes like this.

Gotta love liberals. Trying to patch holes like this ludacris. Taxing the 'rich' will only create more of a deficit. They're like educated housewives. All dressed and no place to go. Since they're 'taken care of', they expect everyone else to be. The lack of real world experience truly skews their value system.
"On the backs of the poor"? Not likely.

April Fool's joke? You mean I got fired up for nothing? Well, the opinion remains the same. And at least it was free. For now.

[crASH]

This press release is getting some airplay on the net for sure.

Does this Senator think we buy these cars with Monopoly money? How many times do we need to be taxed on the same dollar earned? Last time I looked I still pay both sides of FICA (15.5% for self employed) , PLUS state, AND federal income tax to have a few thin dollars left over to have a little fun.

[JWilly]

As dmorse says, I am pretty sure this is an April Fool's prank. I think it was in a SAAC newsletter reported as coming from the NY Times. Some people just have too much time on their hands. At least I hope it is a prank.

[crASH]

Hope you're right. The date I saw was March 28th and there were two full pages of search results when I googled it.

[patrickt]

Man, you all are gullible. Car taxes are inherently a "state's rights" issue anyway. But here's his press releases if you'd like to peruse them: http://schumer.senate.gov/new_website/releases.cfm

[scaffold]

as is usually the case with a politician, is there one mention in the whole thing about cutting spending. It's always about ways to increase money coming in (taxes). They all spend money like a bunch of drunk sailors (apologies to Navy vets) on shore leave. Instead of spend-spend-spend, try cut-cut-cut.
Be glad we don't get all the govt. we pay--we surely couldn't stand it

[JWilly]

http://www.saac.com/files/newsletter...s-04-01-11.pdf

[mreid]

April fools! Yes, proud to be a former drunken sailor and now drunken civilian.

[RodKnock]

And to think, it appears that the Shelby club's own Mr. Rick Kopec started this Internet sensation:

http://saacforum.com/index.php?topic=12363.0

[rodneym]

Originally Posted by patrickt

Man, you all are gullible. Car taxes are inherently a "state's rights" issue anyway. But here's his press releases if you'd like to peruse them: http://schumer.senate.gov/new_website/releases.cfm

I can think of a couple of instances when the Feds will tax a car.

As far as creating new ways to generate tax revenue, we've only just begun.

[patrickt]

Originally Posted by rodneym

I can think of a couple of instances when the Feds will tax a car.

Taxing the "car" or taxing the functional relationship the car has to something else (like interstate commerce)?

[jmimac351]

"States Rights"

Talk about gullible...

[grybrd123]

You guys ....

This is a HOAX. If you would take the time to check the NYT you will find it NEVER APPEARED.

grybrd123

[RodKnock]

Originally Posted by patrickt

Taxing the "car" or taxing the functional relationship the car has to something else (like interstate commerce)?

What about the Federal luxury car tax?

[crASH]

In NC it's the counties that do the annual taxing of our vehicular property (as well as our real estate) ((which won't be much of an "estate" at all if property values don't start improving))

So far as vehicles go, the state gets in on the tax action at the initial purchase by way of a "highway use" tax but that's just a one time thing. 3%

But don't forget that the Feds are getting about $ .18 per every gallon of our favorite fossil fuel that we put in our vehicles.

[patrickt]

Originally Posted by RodKnock

What about the Federal luxury car tax?

Hmmm, that's pretty good. But the FLCT is a sales tax that just happens to be on cars at the time of purchase. It's not a recurring property tax like you pay on your house and, at least in my state, cars as well. But I'll give you partial credit for an otherwise good reply.

[crASH]

Originally Posted by grybrd123

You guys ....

This is a HOAX. If you would take the time to check the NYT you will find it NEVER APPEARED.

grybrd123

..we get that now. It was jus' good for startin' a fuss about the gubment.