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BOAT LUXURY TAX REPEAL BILL INTRODUCED IN SENATE

 WASHINGTON, Jan. 25 /PRNewswire/ -- A bipartisan group of United States senators, led by Sens. John Breaux (D-La.) and John Chafee (R-R.I.), introduced S. 69 on Jan. 21 in the Senate to repeal the 10 percent luxury tax on boats that emerged from the Omnibus Reconciliation Act of 1990. Senate Majority Leader George Mitchell (D-Maine) joined Breaux and Chafee as an original co-sponsor of the bill. All three senators were champions of boat luxury tax repeal in the 102nd Congress.
 The National Marine Manufacturers Association (NMMA) survey estimates indicate the 10 percent excise tax on boats costing at least $100,000 resulted in the loss of more than 25,000 mostly blue collar jobs in the boating industry, and countless small boat manufacturing businesses have closed their doors. While sales of boats under $100,000 have remained consistent with sales figures in similar historical economic circumstances (overall boat sales are off approximately 35 percent to 40 percent), sales of boats in the taxable category only are down by an unprecedented 80 percent to 85 percent. The sharp decline began immediately upon Congress' imposition of the luxury tax in January 1990.
 NMMA led an intense industrywide lobbying effort for repeal in the 102nd Congress. By the spring of 1992, there was widespread bipartisan support for repeal of the tax in Washington in the Congress, as well as the Bush administration. However, repeal measures were placed in the tax bills that President Bush vetoed in response to items unrelated to the luxury tax.
 NMMA Vice President of Government Relations David Broome is optimistic about repeal occurring in time to help boost some of the season's boat show sales, saying, "The positive signs for repeal in this Congress and with the Clinton administration are taking shape. There appears to be virtually no opposition to the concept of repeal -- everyone seems to now realize it was simply bad tax policy. At this point, we are merely waiting for Washington to act on economic and tax measures, and are working to include repeal of the luxury tax in the first wave of activity."
 The House bill to repeal the tax, H.R. 348, was introduced Jan. 3 by House Ways and Means Committee members Reps. Clay Shaw (R-Fla.) and Ben Cardin (D-Md.) and joined by House Democratic Whip David Bonior (D-Mich.).
 -0- 1/25/93
 /CONTACT: Cheri Jacobus of the National Marine Manufacturers Association, 202-944-4980/


CO: National Marine Manufacturers Association ST: District of Columbia IN: SU: LEG

TW -- DC012 -- 8452 01/25/93 11:43 EST
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Date:Jan 25, 1993
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