With the economic downturn, the boat business is in the tank. Nobody is buying boats, yet the Governor of New York wants to kill the boat business by adding a five percent luxury tax to the cost of buying a boat? Why not just order boat sellers to go out of business and be done with it?
Years ago a tax on yachts was imposed and the results on the economy were staggering. I was in the business of selling boats at the time, and the taxes simply killed the business in the United States.
The tax did boost the economy, except it wasn't the U.S. economy. People kept buying boats, but not here. They bought them in Venezuela and Mexico and a host of other foreign countries, had them registered in those countries, and then had somebody take them to the United States.
Why? To avoid the taxes.
Make the interest buyers pay on cars, boats, motor homes, second homes and investment real estate deductible, and you won' t need bailouts. The American people will do the job themselves.