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View Diary: Don't Boycott Florida (113 comments)

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  •  Shahryar - they were right (1+ / 0-)
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    worldlotus

    At one time we actually had a 10% federal luxury tax on yachts. Yachts are hand made by expert craftsman. It totally tanked the new yacht industry putting those craftsman out of work until Congress realized how dumb an idea it was, repealed the luxury tax on yachts, and allowed the craftsman to go back to work.

    "let's talk about that"

    by VClib on Tue Jul 16, 2013 at 06:15:45 PM PDT

    [ Parent ]

    •  Now We Know . . . the Rest of the Story . . . (6+ / 0-)

      The actual story is different, however.

      The luxury tax became law in late 1990.  Just in time for the Bush Recession.  Business activity of all kinds suffered in the early 90's, not just the yacht business.

      I would attribute the overall problem to the familiar business cycle.

      Eventually, the luxury tax was rescinded.  However the yacht industry never recovered to the size it had been prior to the recession (that early 90's recovery was considered fairly slow at the time).  The problem was that this growth industry simply expanded beyond the market's ability to absorb the product.  Capitalism can be like that.

      So, aside from the neglecting the effect of the recession, and the addition of the sunny ending that never happened, the story is fine.

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