St. Clown
Ideas Posted are Likely Not My Own
Re: An Experiment: A Literal Political Thread
Purchasing a car overseas and shipping it back to the US is tricky business, too. You have to be able to bring the car up to safety and emissions codes of the United States if you're intent on using it on our roads. So there's a limiting effect on the automobile market that likely does not exist in the yacht market. At some point during the 80s, US soldiers would buy expensive cars overseas and ship them here for relatively cheap prices. At the time, the US did not have restrictions on individuals importing cars the way we do now. My brother was stationed in Germany at the time of the change, and a lot of his friends on base were doing what they could to buy a car and ship it home before the new restrictions went into place.
Four incremental pieces of information that we need to include as part of a controlled scientific experiment.
1) a tax on yacht value over $30,000 on yachts is not the same as a tax on auto value over $30,000, since most yachts cost far more than luxury autos ("what is the average purchase price of yacht in 1991 vs luxury car?")
2) It is relatively easy to go to another country to buy a yacht and sail it here. It is not nearly so easy to go overseas to buy a car and then ship it here. ("how much does it cost to ship a car from Europe vs sail a yacht from Europe?")
3) Most US yacht builders nearly went out of business in the early 1990s; automakers, not so much. (former was cited in NY Times article).
4) what proportion of US automaker sales were affected by tax compared to what proportion of US yachtmaker sales were affected by the tax (how much did US Automakers also sell overseas vs how much did US yachtmakers sell overseas?)
It was never presented as "all or none" but as "relative proportion." The tax impacted yachts far more heavily than cars on a relative basis because the amount of the purchase price subject to tax on the yachts was much higher than the amount of the purchase price subject to tax on the cars. (e.g, if average yacht is $100,000 and average luxury car is $50,000, then the former has a tax 3.5 times greater than the latter; not quite apples to apples when parsing out the effect of the tax relative to the effect of the recession).
Purchasing a car overseas and shipping it back to the US is tricky business, too. You have to be able to bring the car up to safety and emissions codes of the United States if you're intent on using it on our roads. So there's a limiting effect on the automobile market that likely does not exist in the yacht market. At some point during the 80s, US soldiers would buy expensive cars overseas and ship them here for relatively cheap prices. At the time, the US did not have restrictions on individuals importing cars the way we do now. My brother was stationed in Germany at the time of the change, and a lot of his friends on base were doing what they could to buy a car and ship it home before the new restrictions went into place.