[timbuk2002]

Congress is considering a post-thanksgiving 10-day sales tax holiday as a way to stimulate the economy (Congress would reimburse the states for lost revenue). Here in New Orleans that would mean saving 9% on our new Odyssey. The only problem will be finding one to buy during that 10-day period (if and when it materializes).

Any thoughts on whether an Odyssey could be ordered and paid for during the tax holiday, even if the car's not in the dealer's inventory? This is very hypothetical at this point, but I'm looking at saving over $2,500!

http://www.nola.com/news/t-p/washington/index.ssf?/newsstory/taxes03.html

 

[darelldd]

I'll bet you could order one or find one right away, and have the dealer hold it for you with a large down-payment....with the understanding that you'll pay the ballance, and actually sign the invoice during the tax-free window.

I'll bet car-buying will go through the roof that week!

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-= Darell =-
2001 Civic EX (ULEV)- currently the BIG car.
1997 EV1 (ZEV) in process - "This is NOT your father's golf cart"

 

[Homer]

Would that be great or what? The savings wouldn't seem to affect resale value, either (as do certain other incentives).

If this materializes (there are obstacles to overcome including, apparently, Lott), I will be the first in line at my dealer with check in hand. They can have the dough up front......I'd save 7% (timbuk2002, that 9% savings is HUUUUUGE!!!!!).

I would think (and hope) that as long as you pay for the vehicle in full during the relevant period you'd get the deal, regardless of whether you took delivery.

 

[Maugham]

I don't think this is a great idea for the economy, yet obviously it could benefit the few people who are ready to make big ticket purchases.

If someone is out of a job, he is not going to change his buying habits because of a sales tax moratorium.

For someone who has a job, will this really make much of a differences for other purchases? Will people rush out and spend $500 on an appliance they don't need because of a $40 savings? I don't think so.

I think that people who are ready to make a major purchase might accelerate that purchase. The downside of this is that if a tax moratorium is announced, people will HOLD OFF BUYING until the moratorium is in effect.

If the program worked, that presents a connundrum to "big government" types by showing that less taxes means more economic growth. There are plenty of people who don't want that concept validated.

I really don't know if the proposal will pass. I do know that <a href="http://www.ucc.ie/cgi-bin/acronym?TANSTAAFL">TANSTAAFL</a>. We pay for government expenses one way or another.

If there were a proposal to cut government spending, or layoff numbers of federal employees equivalent to the numbers being layed off in the private sector, now THAT would have some real impact.

FWIW,


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Maugham

"I plan to live forever. So far, so good"
'02 RP EXL
'85 Prelude
'01 Ninja folding aluminum scooter
'00 New Balance Model 658 Shoes w/ Green Grass stains and '01 White Laces w/ Frayed Tips<font color=white>

[This message has been edited by Maugham (edited 11-03-2001).]

 

[adam1991]

<font face="Verdana, Arial" size="2">For someone who has a job, will this really make much of a differences for other purchases? Will people rush out and spend $500 on an appliance they don't need because of a $40 savings? I don't think so. </font>

The retailers will bump up the actual selling price--that is, reduce the amount of any discounts they may be offering--and will take the extra to the bank, knowing that people will think they were getting a deal by not paying sales tax.

 

[Maugham]

<font face="Verdana, Arial" size="2">Originally posted by adam1991:
The retailers will bump up the actual selling price--that is, reduce the amount of any discounts they may be offering--and will take the extra to the bank, knowing that people will think they were getting a deal by not paying sales tax.</font>

Good point! TANSTAFFL!

 

[ckonarske]

<font face="Verdana, Arial" size="2">Originally posted by Maugham:
Good point! TANSTAFFL!</font>

Maugham, if you walk into my garage, you'll see a plaque above the door. On it is printed "TANSTAAFL".

It's been one of my favorite acronyms since reading Heinlein too many years ago to remember.

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Chuck
Click here for Ody pics, mods and fixes on FotoTime.

 

[darelldd]

<font face="Verdana, Arial" size="2">Originally posted by Maugham:
I really don't know if the proposal will pass. I do know that <a href="http://www.ucc.ie/cgi-bin/acronym?TANSTAAFL">TANSTAAFL</a>. We pay for government expenses one way or another.
</font>

Yeah, that's pretty much how I felt about the brilliant $300 tax credit checks earlier this year. That was supposed to stimulate our economy? Crap.

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-= Darell =-
2001 Civic EX (ULEV)- currently the BIG car.
1997 EV1 (ZEV) in process - "This is NOT your father's golf cart"

 

[Homer]

<font face="Verdana, Arial" size="2">Originally posted by Maugham:
I don't think this is a great idea for the economy....
</font>

I agree. The tax rebate was also ill-conceived and, apparently, accomplished little in the terms of stimulus.

The bottom line is TANSTAAFL stands as does the business cycle. Regarding the latter, Greenspan recently stated that anyone who previously thought the business cycle had been repealed had better think again.

But the ultimate abomination occurred last week when the Feds announced they would no longer issue the long bond; a last gasp effort to stimulate the economy through the manipulation of the yield curve. IMHO, that's worse than any other stimulus plan to date as it was thinly veiled as "debt management". TANSTAAFL applies here as well.

To paraphrase Yogi Berra, the economy will recover when it recovers (maybe he even said those exact same words, I don't know). The point is that there's simply no quick fix and it's about time our elected officials aknowledged that, IMHO.

 

[Maugham]

A reduction in income tax is more equitable than a sales tax moratorium. It lets the individual decide how he will spend the money for which he has worked - or maybe just save it. The sales tax moratorium is specifically limited to purchases of taxed items during a set period.

I apologize to the board for getting this far offtrack. This discussion might be better conducted in a forum for economics or politics.

Go Ody!

Regards,

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Maugham

"I plan to live forever. So far, so good"
'02 RP EXL
'85 Prelude
'01 Ninja folding aluminum scooter
'00 New Balance Model 658 Shoes w/ Green Grass stains and '01 White Laces w/ Frayed Tips

 

[MerpsMom]

Maugham, if it could be kept civil, I'd love that kind of forum.

 

[Jerry O1]

I think the best thing that could be done for the economy is to use a full ten day production of duct tape to shut the mouths of all the so-called economists/analysts who rub their chins and mention that we "may be headed for a recession". Sure enough, this is immediately followed by all the lightweights going berserk and bailing out of the stock markets, putting off their purchases and generally helping to cause just that. Funny world, isn't it.

Jerry O.

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2001 Odyssey GG LX

 

[lotus18]

I wonder if those congressman thought about making car payment tax deductible again. I remember those good old days: tax deduction for both the house and car.
If they reverse it back to tax deductible, it will help the economy in a longer run than just a few days tax relief, don't you agree?

 

[Homer]

<font face="Verdana, Arial" size="2">Originally posted by Jerry O:
I think the best thing that could be done for the economy is to use a full ten day production of duct tape to shut the mouths of all the so-called economists/analysts who rub their chins and mention that we "may be headed for a recession". Sure enough, this is immediately followed by all the lightweights going berserk and bailing out of the stock markets, putting off their purchases and generally helping to cause just that. Funny world, isn't it.
</font>

Jerry, GREAT idea! Unfortunately, it's not limited to lightweights; big-time fund managers are typically the first to freak out.

Personally, I find it rather bizarre following the tragic events of 9/11 that hedge fund managers would take that opportunity to get net short after the market re-opened. This after their friends and acquaintances had been killed in the WTC and knowing full well that mom and pop were being asked to buy a few shares to help prop up the market. Geez!!

 

[cmt4]

When these sales tax initiatives go out, they usually have quite a few exceptions. I'm sure auto purchases will be excluded. Even if they are not, this does nothing to promoting a better economy. This would be a "feel good" farce.

It is so true that retailers will perform "price adjustments" during this time. Makes me SICK that American companies will use the events of 9/11 to make a buck. Have they no shame. Where is THEIR patriotism.

 

[Jerry O1]

Yeah, Homer, it was something. All the talk of patriotism and helping the other guy goes out the window when money is involved. Lots of folks' first thought was to save their own a**es by jumping out of the market. I guess money is a lot thicker than blood, at times like that.......Yes, we were asked to buy some stock to help stabilize the market, and we did. For those who had no loose money, just holding their positions in the market would have been nice. Funny world!

Jerry O.

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2001 Odyssey GG LX

 

[mstaebo]

We love living in New Hampshire for lots of reasons -- but no sales tax is certainly toward the top of the list, (especially when we were buying our Ody last month!)

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Erika
'02 SS Ody EXL-RES
'95 Honda Accord LX