In 1991 the Federal government imposed a 10 percent excise tax on yachts costing more than $100,000?




In 1991 the Federal government imposed a 10 percent excise tax on yachts costing more than $100,000. This tax:

A. failed to bring in the expected amount of tax revenue because the demand for yachts was more price elastic than the government estimated.

B. brought in more tax revenue than expected because the demand for yachts was less price elastic than the government estimated.

C. failed to bring in the expected amount of tax revenue because the demand for yachts was less income elastic than the government estimated.

D. brought about an increase in the demand for yachts and stimulated employment in the boat-building industry.

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This entry was posted on Thursday, August 13th, 2009 at 3:40 am and is filed under Taxes on Yachts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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One Response to “In 1991 the Federal government imposed a 10 percent excise tax on yachts costing more than $100,000?”

  1. Ty H Says: August 15th, 2009 at 9:41 am

    A and C. Also Gov Florio of NJ tried this and he lost an election because of it.

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