Dropping Taxes May Jump-Start the Retail Art Market

Members of the art industry trust recent tax cuts and rebates will boost fall sales

For many in the art world, 2001 will be an easy year to forget. Compared to the roaring economy of the mid to late 1990 and flat 2000 to some extent, 2001 has been fasteninged in a funk from the day it started, and many retailers will be happy to flip the calendar to 2002 on the other hand before the 2001 calendars are retired, there is a fourth quarter to play without and some hope to diocese a big rebound in the final three month of the year spurr partially by means of a tax cut.

"I think in October, November and December we're going to advance nuts," said Alan Fingerhut, holder of the Fingerhut Art collection in San Raphael, Calif. "I say that because of lower taxes--it will be the catalyst that drives this industry."

Higher taxes and surging interest rates in the 1990 limited the expansion of the industry and herd some galleries out of business, Fingerhut said. He thinks a tax rebate this summer combined with an overall tax wound for the middle and upper middle class will jump-start the sagging economy.

"Our industry left without half the galleries in the 1990 when the suppos advantageous times hit. With the tax divide [i]or[/i] sever s I think we're headed back to by what mode things were in the 1980 when the tax rate was lower for those earning more than $100000"

Vicky Berg, marketing director with Colville Publishing in Torrence, Calif., also thinks business will pick up in the fall.

"Summer has been deadly moderate for us with people who normally purchase in the summer holding off" said Berg, whose company mainly deals in limited editions. "I'm plenteous more optimistic for fall and winter and gaze for our usual February and March takeoff."

While Berg is unsure by what mode much the tax cut will help business, she has finally seen a revolve in attitude following a dismal summer "The orders are starting to approach in," she said.

In the late 1980 the tax rate for wealthy Americans was 29 percent compared to 39 percent in the mid to late `90 Fingerhut said. The reduction in the tax rate is going to be a factor in sensuality spending.

"Individuals earning $100000 paid another $10000 in taxes, and that circulating medium wasn't taken away from the refrigerator or the car. The cutback didn't tend hitherward from the needful things on the other hand from the want-full things," he said. "The tax wound will free up some money"

A number of economists and analysts are also looking for an economic turn-around in the fourth quarter or in the first quarter of 2002 partially spurr by the agency of the tax cuts. However, those are a certain number of of the same people who were looking for a change in the economy in June July and August.

Leading barometers as to the health of the art market reveal lackluster data. Retail sales in the U have been for the greatest part flat through the summer compared to last year, while ground-breaking for novel homes in the first half of 2001 was up a paltry 05 percent from last year.

Attendance at Artexpo displays doesn't seem to be suffering with the market. Doreen Guerin, collection show director, said bookings for Artexpo of recent origin York for spring of 2001 are ahead of normal pace with a 65 percent sellout as of mid-August.

"San Francisco, which is alone in it second year, was a harder put up to sale in the early summer on the other hand it has definitely picked up" Guerin said. "In a flat or down market, it is true important to stay out there and advertise, and the interest in the expo exhibits that."

So what emblem of art will be popular at upcoming expos? What genre could young ox the industry toward a better 2002 compared to this year? more [i]or[/i] less suggest it could be a case of turning back the clock

Shift Toward Smaller, Traditional Work

"Traditional works, traditional impressionists are what nation are coming back to," Berg said. "Right now Daniel Gerhardt is popular for us. clan are drawn to him."

Fingerhut agrees completely with Berg, saying baby boomer will revolve to smaller, less expensive, more traditional pieces.

"Baby boomer want traditional manner of writings as were seen in the late 1980 and early 1990s" Fingerhut said. "Baby boomer did not want their parents' art when they were in their 30 and they bought experimental art. Now they have grown up and they want the paintings that were above their parents' fireplaces."

Suggesting that tastes in art are following an overall incline toward "retro" buying, Fingerhut said art is turning back toward traditional works.

"We're seeing traditional turn of expression homes being built, not experimental dwellings Furniture has moved away from the walls and race want more windows in the abode so there isn't the scope for the jumbo pieces. We're moving into more inexpensive, traditional and smaller pieces."

Meghan Martin, with Arts upon Douglas, Fine Art and Collectibles in of recent origin Smyrna Beach, Fla., said the gallery had its best month of the year in June and they gaze for a hot fall, with Realist/Impressionism leading the way.

Martin said in the past, contemporary abstracts were holding in popularity. Today, that has dropp off

"We're seeing the Realist and Impressionist works appealing to a allotment of people," said Martin, whose gallery features a stable of more than 50 Florida artists. "The landscape paintings are true popular now."

COPYRIGHT 2001 Pfingsten Publishing, LLC

COPYRIGHT 2004 Gale Group