diamondaviators.net

We wisely avoid politics on this site, but this item is worth noting. The Canadian federal government has announced it will introduce a new tax of 20% on new aircraft and cars for the portion above CAD$100k (USD $79k) For boats it’s 250k. The effective date is Jan 1, 2022. The details are buried at page 600 and something of an 800 page document.

I would think this would just about finish off the new personal aircraft market in Canada, although you never know, sometimes creative solutions emerge very quickly. Short term renewable leases come to mind.

The tax will not apply to exports they say, so Diamond Canada can still sell my US friends the fine product you have come to expect without any obstacles. It’s just people who actually live here who are the problem.

Is that in addition to sales tax? I thought I had it bad when I had to pay 8% sales tax in TX on the $199K purchase price of my airplane...

I recall when they added the Federal 10% luxury tax here in the USA in 1991. It actually backfired and the government ended losing more revenue than prior to the tax. It was repealed a few years later.
https://www.americanexperiment.org/cong ... -behavior/

Typically large tax increases backfire as they reduce to the TOTAL revenue to the government. Check out the Laffer curve - Art Laffer.

The Laffer Curve is a theory developed by supply-side economist Arthur Laffer to show the relationship between tax rates and the amount of tax revenue collected by governments. The curve is used to illustrate Laffer's argument that sometimes cutting tax rates can increase total tax revenue.