Not only did the 1944-1965 US federal excise tax cover handbags, luggage, wallets, key fobs and manicure sets, it was also placed on other women-centric items, including face creams, furs and jewelry. This original press photo from the collection of The Vintage Purse Museum is dated February 21, 1944, two months prior to the implementation of the 20 percent FET. At this time, jewelry was "only" taxed at ten percent. There were problematic issues that came with the convolution of income tax, "victory" tax, pay-as-you-go taxation and the federal excise taxes on items that were deemed luxuries. The photo--and, presumably, its accompanying article--concerned the inability to deduct luxury taxes from income tax.
|Photo illustration representing the jewelry "luxury" tax and the inability to deduct it from one's income tax. From the collection of The Vintage Purse Museum.|
|The recommended caption for the publication of the press photo above, on its reverse.|