Tax dodgers are going to dodge taxes... Only good citizens like you pay taxes...
Speaking of taxes, they have been demonstrated to have effects on boatbuilding and the boatbuilding industry.
Now, granted, these were direct taxes on the boats themselves,
but it demonstrates that taxing a thing has an effect on both that thing & stuff connected to that thing,
perhaps that famous butterfly effect metaphor, or perhaps not,
but either way, a documentable and often detrimental effect.
--> 3 historical references and then 3 more contemporary references
tl;dr - history is doomed to be repeated
or something like that
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Boat-builders fight to stay afloat as luxury tax pulls down sales
Author
By Tom Bowman
UPDATED: October 26, 2018 at 6:23 AM EDT
Washington — Last year, some 220 workers built boats at Pearson Yachts Corp. in Portsmouth, R.I. This year, there are 50 workers left. On Maryland’s Eastern Shore, Harrison Yacht Sales …
www.baltimoresun.com
Washington — Last year, some 220 workers built boats at Pearson Yachts Corp. in Portsmouth, R.I. This year, there are 50 workers left.
On Maryland’s Eastern Shore, Harrison Yacht Sales in Graysonville has trimmed its 95 employees to eight.
Those job cuts are among an estimated 19,000 blue-collar marine jobs lost throughout the nation this year. The culprit, boat industry officials say: a 10-percent federal “luxury tax” that went into effect in January on new pleasure boats that cost more than $100,000.
Created to hit the blue-blazer crowd, the tax has instead slammed into the blue-collar worker like a summer squall, zTC according to boatyard owners and officials who track the 450,000-worker industry.
Sales of boats that cost more than $100,000 fell by 56 percent one month after the tax went into effect, according to the National Marine Manufacturers Association. Some boatyard owners, who report no sales this year, have been forced to lay off workers or declare bankruptcy.
That turmoil has sparked a reaction by members of Congress from coastal states such as Louisiana and Maryland, which have lost marine jobs. This week, at a Senate subcommittee hearing, legislators will begin the struggle to repeal the tax that has hurt people like Dave Harrison.
HOW TO SINK AN INDUSTRY AND NOT SOAK THE RICH
July 15, 1993
By James K. Glassman
Rich people aren't happy about paying this extra money. Even if they can afford it, they think it's unfair. And in some cases, they're refusing to pay it -- simply by refusing to buy new boats and planes.
Of course, rich people don't have to buy a new 90-foot Broward (they can keep the old 54-foot Bertram, for instance, or buy a house in Vail, a major Childe Hassam or a minor Gauguin -- none of which are covered by the luxury tax). So the federal government doesn't get the tax money -- and, worse, Broward doesn't sell its yacht and various boat builders get put out of work.
As a result, in its first year and a half, the yacht tax raised a pathetic $12,655,000 for the Treasury. That's enough to run the Agriculture Department for a little over two hours. Meanwhile, the tax has contributed to the general devastation of the American boating industry
The EU Hits American Boats with 25% Tariff
Jun 25, 2018
The Targeted Boats
The new EU import duties effectively stop all U.S. boat exports from canoes and kayaks to PWCs to sterndrives and inboard cruisers to megayachts. The only boats that seem to be excluded are outboard-powered boats and inflatables to the EU nations.
Currently, about 111,000 aluminum boats are made in the U.S., including aluminum fishing boats and pontoon boats. Aluminum boats account for about 43% of all boat sales in the U.S. According to an NMMA spokesman, the price of domestic aluminum has already jumped 20%.
The $39 billion U.S. boating industry supports 650,000 American jobs, said NMMA president Thom Dammrich in a statement.
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US marine industry in turmoil over new tariffs
The U.S. marine industry is in turmoil with the entry into force of new tariffs imposed by the Trump administration. These measures, which affect imports of steel, aluminum and various products from Canada, Mexico and China, have raised fears of a new trade war, with short-term consequences for the European marine industry. While markets are reacting negatively, players in the nautical sector are getting organized to limit the impact on production and exports.
Maxime Leriche
Published on March 4, 2025
The U.S. marine industry is in turmoil with the entry into force of new tariffs imposed by the Trump administration. These measures, which affect imports of steel, aluminum and various products from Canada, Mexico and China, have raised fears of a new trade war, with short-term consequences for...
www.boatindustry.com
The new measures are reminiscent of 2018, when the European Union imposed a 25% tax on American boats in response to tariffs on steel and aluminum. This decision led to a drop in exports from the American marine industry to Europe, a crucial market.
If the European Union decides to reintroduce similar countermeasures in 2025, American shipbuilders could face a new crisis. A moratorium on these taxes, negotiated in 2021 and extended until March 31, 2025, may not be renewed if tensions escalate.
How U.S. Yacht Buyers Can Beat the New Yacht Tariffs: Look for “Duty Paid” Deals
Following President Trump’s surprise April 2 announcement of sweeping new import tariffs, the U.S. yacht market is in flux.
The policy—part of a broader “reciprocal trade” strategy—adds a universal 10% tariff on all imports, with elevated rates of 20% on EU goods, 32% on Taiwanese goods, and up to 54% on Chinese imports.
www.yachtbuyer.com
Real Savings: Avoiding Tariffs Up to 54%
Here’s a practical example: A new Pearl 72 for sale, built in China, might face a 54% tariff if purchased directly from the shipyard or as an inbound new delivery. That could add over $2 million to a $4 million yacht.
However, if a U.S. dealer imported the same model six months ago and it's already listed in Florida with duty paid, the buyer pays no additional import tax. That’s an enormous savings—and with immediate availability, too.
How Buying a Foreign-Flagged Vessel Can Save You Hundreds of Thousands of Dollars
September 28th, 2021
Despite these limitations, many sellers choose to pursue an offshore sale in hopes of attracting an international buyer and boosting their profits by avoiding required U.S. import taxes. But this means that U.S. nationals cannot even touch the teak of a for-sale foreign-flagged vessel when she’s in American waters without risking the wrath of U.S. Customs.
But if you’re an American eyeing a foreign-flagged beauty, fear not. Here’s what you need to know about buying or selling a foreign flagged boat offshore:
BUYING FOREIGN-FLAGGED VESSELS
Pursuing an offshore sale will give you access to far more inventory. And though you might not be able to experience the smooth glide of that foreign-flagged, soon-to-be-yours yacht of your dreams in your home waters, that doesn’t mean you’re buying blind.
As the sale proceeds, your offer will be subject to a sea trial held in international waters (at least 3 miles out from the U.S. shoreline). If the trial is successful, you’ll complete the sale of the boat while still at sea.
For Americans, you’ll have to pay U.S. import taxes and other required fees as soon as you re-enter American waters.
International buyers who are hoping to bring their new boat back to the United States will need to obtain a new cruising license to keep her in American waters.
Though this process can feel confusing to first-time offshore boat buyers, a well-qualified and experienced yacht broker can make it easily navigable.
SELLING FOREIGN-FLAGGED VESSELS
If you’re the owner of a foreign-flagged vessel and already have a cruising permit in hand, there are a few key reasons you might choose to list it as an offshore sale:
Circumventing hefty Duty and Import tax requirements can boost your profit from the sale, especially if you take into account how exchange rates will factor into your bottom line.
Depending on where your boat is docked, it can be easier to sell in the U.S. than sailing/shipping your boat back to the country where it’s registered.
A savvy seller will also think about how buyer trends in local markets will affect interest in and demand for the features your vessel offers.
However, listing your boat as an offshore sale comes with two major downsides: