The Senate Finance Committee Tuesday voted to repeal the 10 percent luxury tax on expensive yachts, furs, jewels and planes.
The taxes would be repealed retroactively to Jan. 1. The tax on high-priced cars would be retained, but the $30,000 threshold at which it begins applying would be raised each year to adjust for inflation."This luxury tax has been a total disaster in every respect," Sen. John Chafee, R-R.I., said before the panel voted repeal by voice vote and without dissent.
Owners of diesel-powered recreational boats would pay a big share of the cost of repealing the luxury taxes. If the bill becomes law, they will have to begin paying the 20.1-cent-a-gallon tax on diesel.