Luxury Tax Coming ...

[BobRae99]

Liberal government just announced a 20% luxury tax on boats costing over $250,000. The tax will be 20% of the value over $250,000 or 10% of the total purchase whichever is lower.

Bast**ds!

[dustinm]

There may some silver lining here, manufactures may pull back a little on their pricing.

[BobRae99]

There may some silver lining here, manufactures may pull back a little on their pricing.

Good luck with that. I'm shopping for a 911. the dealers don't have new cars and don't have allocations for delivery before August (my dealer has one allocation). So most people will likely have to wait until after the new tax takes effect to take delivery. My dealer is worried. A typical 911 goes out the door here (pre tax) for about $150 - $160,000. That adds $10 - 12,000 in tax - no small amount.

[Krob1114]

Liberal government just announced a 20% luxury tax on boats costing over $250,000. The tax will be 20% of the value over $250,000 or 10% of the total purchase whichever is lower.

Bast**ds!

Is this just Canada?
"Liberal government" could be anywhere.

[Norris_Boating]

Liberal government just announced a 20% luxury tax on boats costing over $250,000. The tax will be 20% of the value over $250,000 or 10% of the total purchase whichever is lower.

Bast**ds!

I bet it isn't pegged to inflation either, which just means it will be most boats 10 years from now.
I wonder if this also applies to commercial vessels.

[bruceb58]

Last time there was a luxury tax, it was put in by HW Bush and removed by Clinton. I kinda doubt it will happen.

[mdadgar]

Last time there was a luxury tax, it was put in by HW Bush and removed by Clinton. I kinda doubt it will happen.

The OP was Canadian, so talking about Canada.

I agree - a lux tax that hits mass market boats, even expensive ones, is going to be a tough sell in the USA.

Now things like private jets - I'm ok with that. If you can afford the jet, you can afford the tax.

- Mark

[Norris_Boating]

Now things like private jets - I'm ok with that. If you can afford the jet, you can afford the tax.

- Mark

You know, the income tax started out as a tax targeting the top 1%, be careful what you ask for.
I bet there are plenty of people that can't afford a boat that would say the same thing you just said about planes.

[BobRae99]

Last time there was a luxury tax, it was put in by HW Bush and removed by Clinton. I kinda doubt it will happen.

Now things like private jets - I'm ok with that. If you can afford the jet, you can afford the tax.

- Mark

That is exactly what the Canadian finance minister said with respect to $100,000+ cars and $250,000+ boats. But, the guy who buys the $75M Gulfstream G700 won't be too happy about the $7.5M luxury tax. Of course business (commercial) use vessels and aircraft aren't included.

[mdadgar]

Now things like private jets - I'm ok with that. If you can afford the jet, you can afford the tax.

- Mark

You know, the income tax started out as a tax targeting the top 1%, be careful what you ask for.
I bet there are plenty of people that can't afford a boat that would say the same thing you just said about planes.

I live in one of the very highest tax places in the country, so I get it. But I stand behind it.

Honestly, I would prefer we raised the tax on corporations and lowered the tax on individuals. But that's a different thread on a different forum.

- Mark