To keep his fine artwork from getting moldy from the seawater, the air conditioning system on Roman Abramovich’s yacht has to run non-stop, 24 hours a day, 365 days a year. The generator running the air conditioning system burns an astonishing one tonne of diesel fuel, every single day.
Yacht people are not like us. They don’t live in the same world as us. They are not regular rich people. There are rich people, and then there are yacht-rich people. Regular people have more in common with rich people, than rich people do with yacht-rich people.
Regular rich people are just annoying, but the mega rich are in another category. The mega rich are actively destroying the planet. Rich people drive Bentleys, while the mega rich drive Bugattis. A recent study of luxury car owners found that the average Bentley driver owns eight cars, but the average Bugatti driver owns 84 cars, three jets and a yacht.
So let’s keep that in mind when rich people start lobbying the government for help amid the ongoing trade war and tariff madness that is wreaking havoc on the economy.
No doubt, the trade war is going to hurt plenty of local businesses, and those companies deserve some help.
But luxury goods makers? I feel like they’re going to be just fine, and it annoys me to see them with their hands out already.
For those who don’t know (which is probably a lot of you, since most people aren’t buying boats and Bentleys and Boeings) the federal government recently slapped a 10 per cent “luxury tax” on certain high-end items. This includes cars, boats, and private airplanes which cost more than $250,000.
Generally speaking, I think the government should be lowering taxes. But a tax that only applies to super rich guys buying super expensive rich guy toys? Tax away. In fact, 10 per cent seems low, I think we oughta jack that up to at least 25 per cent.
There just so happens to be a luxury yacht company right here in Niagara. They make and sell very expensive yachts. They have also been very vocal about their opposition to the luxury tax. And now that the trade war is raging away at full speed, they’re using that to renew their push to drop the luxury tax.
This is a bad idea. As I said before, the trade war is going to hurt lots of local businesses, and the upper levels of government can only do so much to cushion that financial hit. Whatever resources the province and the feds have to help out, should be reserved for companies that really, truly need it; not for companies selling yachts to rich guys.
As with any war – the trade kind or the guns and bombs kind – rich people won’t really bear the burden. For as long as there have been wars, rich people have been getting doctor's notes from their rich doctor friends in order to help them dodge the draft and generally avoid any of that nasty business. Same with a trade war. The rich guys will be just fine.
This nonsense is likely just the first salvo in the trade war messiness. We’re probably only a few weeks away from other luxury type industries pointing to the trade war and asking for a handout. How long before winemakers are looking for a tax break? How long before Canada Goose (purveyor of ugly $1,200 hoodies) is looking for a tax break?
How long before luxury condo sellers are looking for a tax break? Oh wait, Niagara is already doing that one.
My point is, rich guys and rich guy companies see an opportunity here, and we must not let them sway us. Hold the line. Tax the rich.
And if it’s a hot summer day and you see a yacht idling on the dock, feel free to pop in for a minute and cool off, the A/C will be cranked.
James Culic does not condone breaking into rich people’s yachts to enjoy some free air conditioning. Find out how to yell at him at the bottom of this page, or send a luxurious letter on calfskin written in the blood of baby seals with a 16th century quill pen to the editor by clicking here.