Rich are getting “richer”

Andy Adams

May 31, 2022

Whoever said that the rich would get “richer” seems to have been right, especially lately. But is that a bad thing?

It’s becoming increasingly clear that governments all over the western world dumped money into their economies to support people and businesses that were suddenly hit hard by the COVID-19 lockdowns and this is where I have to confess to being a “boat guy” not an economist, but if you flood the economy with liquidity, wouldn’t you expect the result to be inflation? 

So, it seems to me that those who were rich enough to own property, particularly those who own second homes and waterfront properties, have seen the value of those assets inflate or rise rapidly, adding to their wealth.

Conversely, those who were not property owners (as an example) have seen the value of condos, homes and vacation property move further out of their grasp. Luxury cars and boats have certainly risen in value, (probably aircraft as well but I don’t follow that market) and our government has planned to “tax the rich” as one of their strategic political moves announcing their Luxury Tax on new cars and aircraft worth over $100,000 and new boats worth over $250,000.

All of Canada’s marine trades associations have railed against this non-stop and you can certainly imagine that the auto industry and aviation have done the same. Is there still a chance that we can stop this tax?

Well…it ain’t over yet. My best friend who also happens to be a top market research exec, sent me an article from the Globe & Mail that said, “Parliamentary Budget Officer Yves Giroux says the federal government’s planned luxury tax will reduce sales of autos, boats and planes by more than $600-million a year. (my underlining – ED). The PBO released an updated assessment of the new tax last Thursday, and Mr. Giroux later appeared as a witness before the House of Commons finance committee, which is studying the government’s latest budget legislation, C-19.”

The article went on to say, “MPs on the finance committee have heard widespread concerns about the tax from Canadian businesses with connections to the three sectors, either through manufacturing or related services such as marinas.” (again, my underlining – ED).

So, we can hope that our message is getting through and back to my original point; is it a bad thing to have rich people? Canada’s superstar finance minister thinks it’s only fair and reasonable that the rich pay more but my point is that by encouraging rich people to buy yachts and spend lavishly (relatively at least), the government gains at a minimum the GST on the $600 million in sales of luxury cars, aircraft and yachts. That’s almost $8,000,000 in GST alone, but then we know there are all the other costs of ownership, the employment benefit to the expenditure of $600 million and all the income tax that gathers.

I could go on and on, but I’m certain you already saw that situation clearly. Let’s hope Ottawa figures it out before it’s too late.

Andy Adams – Editor

Related Posts





Vote for Dorothy, BC’s Iconic Sailing Yacht, in the Classic Boat Awards 2024

CMRA

You are invited to support an historic, recently restored and refitted BC sailboat, Dorothy, by voting for her in a contest, the Classic Boat Awards 2024, run by the UK’s prestigious Classic Boat Magazine. The Maritime Museum of BC (MMBC), owner of this sleek, wooden vessel built in 1897, believes she’s the oldest sailboat in Canada. As she isn’t the only classic yacht in the running, you’re urged to go online and vote for her in the category of Restored Sailing Vessel under 40ft.

Read More




Need to Catch up on News This Week?

Every Tuesday we publish a fresh Digest with informative articles pertaining to the Canadian boating and marine industry. Stay up to date with the latest products, research and industry developments.

Missed an Issue of Boating Industry Canada News Week? If you’re looking for a specific issue, or simply want to catch up on previous issues, check out our Boating Industry Canada News Week Archives.

Not signed up for News Week? Subscribe here.



Even more BALIs at BALI

CATANA GROUP launches its 14th BALI CATAMARANS model, the BALI 5.8, for the brand’s 10th anniversary! Always bigger, always more powerful, always more… BALI!

This time, the new BALI 5.8 is completing the range from the top down.

Read More


Water heater offers dynamic heat source choices

Hubbell-Marine Stainless steel outlet covers
Hubbell-Marine Stainless steel outlet covers

After a long day on the water, having ample supplies of hot water for multiple showers and meal preparation is a welcome luxury. The 1700 Series Marine Water Heater from Raritan Engineering was created specifically for marine use. With a proven long-life design, it’s available with a 115V AC or 240V AC heating element, and the option to include an innovative heat exchanger that uses the vessel’s hot engine coolant.

Read More