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Does taxing luxury items really “tax the rich”? 🤔 Let’s look at the US luxury tax on yachts from the early 90s. 🛥️ The Goal: Generate revenue by taxing high-end purchases made by wealthy individuals. Simple enough, right? The Reality: It backfired. Spectacularly. 💥 Here’s what actually happened: Demand dried up. Yachts are optional luxury goods. Faced with a significant new tax, potential buyers simply chose not to buy yachts built in the US, or delayed purchases. Demand plummeted. 📉 Industr
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