New Canadian Federal Luxury Tax

I feel people have a problem paying a tax on something when it is viewed as arbitrary and designed to penalize. 10% doesn't truly stop or deter most buyers in that segment. Most wealthy people worked very hard for their financial success and are keenly aware of the sacrifices made to get there. Giving 10% to the government is not negotiable for them. The average person remembers the rich guy on his yacht being served lunch or valeting his $300k sports car at the nice restaurant. What they don't see is his or her exhausting work schedule, stress level , financial risk taking and toll on family. Personally I'd rather burn that 10% than encourage politicians to pass more similar laws.

And the average person doesn’t see the number of jobs created by “the rich guy in his yacht” starting with the crew, maintenance contractors, marina staff, sales tax/VAT. Etc

Perhaps the "average person" is more like a "politician", if we are to agree with the sentiments of @Slimshady and @olderboater, neither knows the ramifications.

I wonder, a bit, about the recommendation that such discussions take place in the bilge as in a woodenboat forum. Is that akin to telling someone, who's opinion and views of the ramifications of this new tax differ from yours, to shut up. It may or may not be intentional but that is the impression I get from such a recommendation. Intended or not.

I would vote no on this tax. Based on the reality that is takes away more, see Neptunus quotes, than the revenue generated. Just a quick check on losses sustained by individuals and companies compared to the increased government tax revenue will likely show this to be true. I could be incorrect.

You're kind. I don't believe they have good intentions as they don't NEED more tax revenue. Good intentions would be trying to reverse the trend of taking and spending. Instead they keep looking for ways to take more, and then fail at delivering services they designed to procure the votes to get themselves into office.

Perhaps a "long term lease arrangement" for the construction of a boat shell that is then send to a foreign company on the other side of the river for interior outfitting. The powerful lobbies write the legislation, and they design it with purposeful back doors for their own navigation. This type of action kills business and fails in the revenue check box. Those buying the largest boats have lawyers and accountants that can navigate the back doors.

Let me open a few eyes across the line ..
Here in BC Canada, our house prices have gone nuts, so the BC Govt added a 2% tax on all foreign buyers purchasing residential property which did not reduce prices.
Not satisfied with that, they then applied a 2% tax on the assessed value of any residential type property anyone owned and which property was unoccupied , an attempt to help ease shortages of places for people to live, in essence forcing people to rent out their property, my mother in law at 98 failed to fill out the exemption form and received a tax demand for 21K, I sorted that out real quick but any failure to re file annually and that tax bill reappears, then the City of Vancouver got in the act and tagged on their own "rental income license fee of 2% annually".
So, that style of Government income generation runs rampant up here, any opportunity to add tax or fees is rarely missed and the the people have become used to it, as after all , we do get all these wonderful "free" things don't we ? and still the Govt increases it's debt level annually, gotta get me one of those printing presses.

The data is conclusive. The 10% luxury tax in 1990 resulted in massive job losses, business closures. and lower tax revenue in the USA. That’s not an opinion. That’s a fact.

How will it affect Canada? Well you have the politician’s reaction …a shrug of the shoulders and a completely clueless remark that rich people will probably just pay it.

And if it doesn’t work they’ll just throw something else out there and see if it sticks. Wealth redistribution isn’t going away. More and more people are voting themselves free stuff. To pay for it the government will raise taxes or print more money or both.

By the way, ultimately I think this kind of politicking puts us (North America) on the path of even greater wealth inequality. For reasons not the least of which is a much more difficult entrepreneurial environment. But that’s a whole other discussion.