Luxury Tax History Repeating Itself

Since 2008, tens of thousands of coal-related jobs have been lost – some almost incalculable. As hundreds of coal plants have been closed, it is not just miners who are affected. As power plants close, all employees lose their jobs. Blue collar and white collar employees get the ax – managers, technicians, secretaries, everyone.

But that’s not where it ends. Many of these coal plants are located in rural areas. They have whole towns that spring up around them, as townspeople not only work at the plant, but small businesses are also created, such as restaurants, gas and service stations, grocery and convenience stores, laundromats, dry cleaners, and many more – all to support the plant and its employees. As these plants go away, so, too, do all the support businesses and all their employees.

But this rings hollow to the Obama administration. Obama cares only for himself and his radical agenda, for, once again, due to his Marxist, redistributionist, green agenda, history is about to repeat itself.

Trending: The Facts about the Death of Justice Scalia are Quite Suspicious

Obama’s radical green agenda is about to ruin yet another industry. He and other radicals will consider it a win-win, as Obama not only gets to advance his phony green plan, but also gets the ability to redistribute wealth with his new rule..

take our poll - story continues below

Has Big Tech Gone Too Far Banning the President?(2)

  • Has Big Tech Gone Too Far Banning the President?  

  • This field is for validation purposes and should be left unchanged.
Completing this poll grants you access to Freedom Outpost updates free of charge. You may opt out at anytime. You also agree to this site's Privacy Policy and Terms of Use.

Who’s the target? This time, it’s the Luxury yacht industry.

In 1990, “when Congress imposed a 10 percent luxury tax on yachts, private airplanes, and expensive automobiles, Sen. Ted Kennedy and then-Senate Majority Leader George Mitchell crowed publicly about how the rich would finally be paying their fair share of taxes,” wrote one my heroes, Walter E. Williams.

“In the first year, one-third of U.S. yacht-building companies stopped production, and according to a report by the congressional Joint Economic Committee, the industry lost 7,600 jobs. When it was over, 25,000 workers had lost their jobs building yachts, and 75,000 more jobs were lost in companies that supplied yacht parts and material. Congress repealed the luxury tax in 1993 after realizing it was a job killer and raised little net revenue.”

You would think our politicians would learn from their mistakes, but Obama and his EPA are not politicians – they are radical ideologues and don’t think any punitive redistributive tax or regulation is a mistake. Obama is in office to advance his radical agenda. Nothing else matters.

This time, the president insists that all large yachts built from next year onward will have to install huge equipment on board to help curb nitrogen oxide pollution, hollowing out cabins and other usable spaces just to accommodate the massive equipment.

His “green” regulation will only apply to superyachts larger than 79 feet in length and more than 500 tons. “So what?” some may say, “these owners are already the mega-rich; they can afford it.” But it is not just yachts built in America. “The changes mean all large yachts near North America or the U.S. Caribbean will need to reduce sulfur and nitrogen oxide emissions by nearly 80 per cent,” so, regardless of where the vessel was manufactured, if it enters U.S. waters, it must be so outfitted.

So what do we think will happen to U.S. yacht manufacturers? Once again, as in the early 90s, businesses will fold or downsize, as the rich go elsewhere to have their latest dreamliner built, and the businesses that cater to the rich will follow them. And then there are the luxury destinations these mega-rich visit. Will they now avoid the U.S. for more amenable destinations? Seems pretty likely.

Whether they are liberal or conservative, the super rich have one thing in common (other than being super rich): when possible, they will avoid paying additional punitive taxes and unwanted regulation.

History will once again repeat itself, only, this time, the person implementing the rule–Obama–doesn’t think or care if he’s made a mistake.

Don't forget to Like Freedom Outpost on Facebook and Twitter, and follow our friends at

Become an insider!

Sign up for the free Freedom Outpost email newsletter, and we'll make sure to keep you in the loop.

Previous Cruz, Rubio & Even Christie Unite on Mainstream Media Takedown
Next Father of Slain Reporter Threatens Senator Over Gun Control: “I’m Your Worst Nightmare”

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon to the right of the comment, and report it as spam. Thank you for partnering with us to maintain fruitful conversation. If you don't see a commenting section below, please disable your adblocker.

Sorry. No data so far.