I think there is a differnece in buying a $100K car and a lets say $2,000,000 boat. People do really need the car and do purchase them somewhat locally. Same with jewelry. But for expensive boats some more then $2million first they are not necessary and the buyer can just wait, or more often purchase it overseas and register offshore.
We went from $1.5 million to $325,000 revenue in the space of a year. Outside whatever alternative universe you live in this misbegotten scheme took a chainsaw to marine businesses and put hard working people out on the street.
I think some guy could still afford to buy his lady a $25,000 mink coat and a $50,000 diamond ring. Probably decided to skip the luxury tax on a $1.5 million powerboat like all the other people with money to burn. Burning it’s ok, giving it to a stupid political stunt- no way.
But no one will pay it. No one did last time. This would just be the "hide your boat in Annapolis or Miami" law.
Please do not look at this through the lens of American culture. Although there are common behaviours, look at the Swedish attitude towards taxes as an indication (BBC has a recent article on this) Some cultures see the responsibilities attached to paying taxes, something that is reflected in the attitudes in Canada to the Canadian Revenue Agency vs the US attitude to the IRS. In other words, there is a filter to buying guns in Canada and a different view of taxes.
Yes of course you can but if it is perfectly legal to buy a $1million dollar toy and register it offshore and save $150K and say FU to the tax man that is what happens. More so when the toy cost $5million.
You can, but the attitude was fuck no, I’m not getting price gouged by the government. Let them ruin the marine industry, I’m going offshore to buy.
There is a big difference between a tax on EVERYONE and a tax on YOU. Income tax is the same for everyone at your income level and you choose what to spend it on. When you tax just certain things you are saying F U to just those people.
Are you certain that your assertion is true ?? The early 1990s were also the time during which sailing participation began to plummet, and it has continued to do so. And most of the decline was due to factors other than the tax. Sailboat sales declined, including boats that were not subject to the tax (cost less than $ 100K). Back in the early 1990s you could buy a lot of boat for that much.
Notice that none of the builders I mentuoned upthread were sail oat bulders (except Pj).
This is the fundamental problem with this tax - it's blatantly unfair. It's saying "you spent $250k on a boat so you can afford to pay some extra money", while at the same time saying "you spent $250k on a motorhome, have fun, you get a special exception".
But that is true of all taxed.
But the point is that the luxury tax is punitive. It amounys to socialcengineering to favour grocers over shipwrights and draughtsmen
