> This was quite a popular media thing among conservatives who were torqued about the evils of the 10% luxury tax in the early nineties. It was always about the yachts and yacht industry, too. It was the opposite of persuasive because in reference to the luxury tax, they were always going on about the freaking yachts.
>> The yacht costs $2,995,000, but, thanks to the current luxury tax that kicks in at $100,000, you have to fork over another $289,500. Rich people aren't happy about paying this extra money. Even if they can afford it, they think it's unfair. And in some cases, they're refusing to pay it -- simply by refusing to buy new boats and planes.
> Funny stuff.
Hilarious, and so transparently selfish and self-serving. Something tells me that if you can afford to spend $3 million on a conspicuous-consumption item like a yacht, you'll still find $3.3 million affordable. They just don't like paying taxes. I'd bet they'd have to raise the luxury tax to a level quite a bit higher than 10% to negatively affect the yacht industry.
Even the tax did hurt the yacht industry, the important question is: what did people spend their money on instead? If a tax kills the yacht industry, but strengthens industries more beneficial to the common good, I think that's a positive result.
The incredible depreciation of yachts is a much bigger part of the cost of owning a yacht. A million-dollar yacht will go down to like 200k if that after 10 years.
>> The yacht costs $2,995,000, but, thanks to the current luxury tax that kicks in at $100,000, you have to fork over another $289,500. Rich people aren't happy about paying this extra money. Even if they can afford it, they think it's unfair. And in some cases, they're refusing to pay it -- simply by refusing to buy new boats and planes.
> Funny stuff.
Hilarious, and so transparently selfish and self-serving. Something tells me that if you can afford to spend $3 million on a conspicuous-consumption item like a yacht, you'll still find $3.3 million affordable. They just don't like paying taxes. I'd bet they'd have to raise the luxury tax to a level quite a bit higher than 10% to negatively affect the yacht industry.
Even the tax did hurt the yacht industry, the important question is: what did people spend their money on instead? If a tax kills the yacht industry, but strengthens industries more beneficial to the common good, I think that's a positive result.