Here’s A Tax Law Change to Stimulate BusinessPosted: July 1, 2011
You may or may not know that you can write off a yacht as a second home and get a tax deduction. The vessel needs to have a place to sleep, a head (toilet), and some reasonable facsimile of a galley (kitchen), and you’re good to go with a nice tax deduction. While a substantial number of people own first homes (the present housing and mortgage mess notwithstanding), it’s a MUCH smaller universe of folks that own a yacht as a second home.
Here’s a thought: bring back the deduction for interest on new and used car loans. A huge number of people would be affected immediately with this, and it would stimulate a lot more business- the auto business is much more widespread than the yacht business. In fact, you must even have a car in order to collect unemployment if you live somewhere where there’s no mass transit. This would affect everyone but the top couple percent of Americans, who generally pay cash for their cars. (When I was in the luxury auto business, over 85% paid cash for their new German luxury cars. Not even close to 15% of regular folks paid cash for more pedestrian vehicles, they nearly all financed them.) OK Congress, how about a break for those in the bottom 98%?