But one result is certain and that is more questions for your tax accountant especially if you plan to acquire equipment this year.

Luxury yacht tax unintended results. As a result in its first year and a half the yacht tax raised a pathetic 12655000 for the Treasury. In 1990 George Bush I and Congress agreed to pass an excise tax on luxury boats. The yachting industry provides an extreme example of the harm to domestic producers.

Check out prices and availability for Motor yacht for charter. Of course rich people dont have to buy a new 90-foot Broward So the federal government doesnt get the tax money and worse Broward doesnt sell its yacht and various boat builders get put out of work. What the politicos did not calculate in their equation were two small realities.

Of course rich people dont have to buy a new 90-foot Broward So the federal government doesnt get the tax money and worse Broward doesnt sell its yacht and various boat builders get put out of work. An overcomplicated burdensome COVID. A war on grain-eating sparrows.

In the first year of the yacht tax sales of yachts costing over 100000 fell by 71 sales of boats costing less than 100000 which were not affected by the tax fell 28 due to the recession. The additional 10 percent tax on yachts caused American boat builders to shutter operations and cut jobs as the rich either skipped out on yachts or bought them cheaper from overseas. Any new boat worth over 10000000 was to be taxed 10 of sale price.

It was so exorbitant and so unfair that many yacht buyers just stopped buying. As a result in its first year and a half the yacht tax raised a. Great Moments in Unintended Consequences Vol.

As a result in its first year and a half the yacht tax raised a. Great Moments in Unintended Consequences Vol. The ATOs acknowledgment that this LCT outcome was an unintended consequence of their arguments in court.