Governments often take action based on a perceived issue, which the Government views as static, without factoring in that people will react to the Government action to address the issue. Government officials have all heard the term “social engineering,” and I assume they understand what it means, but they are surprisingly inept at predicting the likely consequences of Government action. In this case, the Government needs money, it figures rich people can afford to pay, so it decided to tax rich people’s toys without considering that rich people will react to the new tax and stop buying new toys in Canada.
I teach an environmental law class at a local university. One of the topics is the U.S. EPA’s “New Source Review,” which was intended to force older, coal-fired power plants (and other old emitters) to meet updated emission standards when they expand to produce more electricity (or whatever) and, in turn, increase emissions. The EPA created this “hook” based on its observation that companies would routinely expand old plants instead of building new ones that meet modern emission standards. The new rule guaranteed that older plants would no longer be expanded, but would continue to run dirty as they had been until they fall down. Duh. From: Dennis C. via CnC-List <cnc-list@cnc-list.com> Sent: Wednesday, January 12, 2022 2:46 PM To: Stus-List <CnC-List@cnc-list.com> Cc: Dennis C. <capt...@gmail.com> Subject: Stus-List Re: Canadian Luxury Tax When the US imposed the luxury tax in the 90's or whenever, it put 17,000 boat builders in the unemployment line. Luxury car salespersons also suffered. Legislators and bureaucrats are woefully ignorant of the law of unintended consequences. Did it result in increased tax collections? Not really. As it only applied to new yachts bought in the US, rich folks simply bought yachts in Europe and brought them home, as I recall. Other anecdotal laws we seem to forget: the U shaped curve (governs efficiencies of volume), the 95% rule (it's easy to pick up the first 95% of that pound of sugar you spilled). And there's always the law above them all, Murphy's Law. -- Dennis C. Touche' 35-1 #83 Mandeville, LA On Wed, Jan 12, 2022 at 1:33 PM Bill Coleman via CnC-List <cnc-list@cnc-list.com <mailto:cnc-list@cnc-list.com> > wrote: OK, I know I should just get back to work, but this is a very thought provoking Bill about to take place, and it is like watching a slow motion train wreck. The American Version of the 90’s may not have been what completely killed C&C, but it certainly guaranteed it. What do they say, “Those who do not remember the mistakes of the past are condemned to repeat them in the future” ?! It’s been about a generation, long enough to forget, I guess. And Canada has a lot to lose. https://marinefabricatormag.com/2021/12/20/analysis-shows-canadas-proposed-luxury-tax-will-have-heavy-impact-on-marine-industry/ https://www.chicagotribune.com/news/ct-xpm-1991-06-13-9102220626-story.html Bill Coleman Entrada, Erie, PA Thanks to all of the subscribers that contributed to the list to help with the costs involved. If you want to show your support to the list - use PayPal to send contribution -- https://www.paypal.me/stumurray Thanks - Stu
Thanks to all of the subscribers that contributed to the list to help with the costs involved. If you want to show your support to the list - use PayPal to send contribution -- https://www.paypal.me/stumurray Thanks - Stu
