The U.S. Congress, as I mentioned, put that 10% luxury tax on the exact same products in the nineties. The Clinton administration ended that tax because it wasn't generating revenue, and it was catastrophic for industry. The Parliamentary Budget Officer has looked at this and done a fair assessment of this provision as part of the costing for election promises, and has highlighted the uncertainty and—Oumar would know the economic term for it—the flexibility of demand when people are looking at those vehicles.
This tax is not going to hurt the rich. It's going to hurt the individual car dealer who has already bought inventory for this year last year, without knowing about the tax, and they've already invested in their building for the next 10 years. It's going to hurt the service techs and the sales folks who aren't going to be part of that provision. I think it's particularly out of sync, as well, when you look at the EV market. EVs are luxury and it has typically been the segment of the market that brings together the highest range of technology before putting it down through the rest of the lineup. We've certainly seen that on the EV side of the equation, so putting a luxury tax on EVs is a potential problem.
Our ideal situation would not be to have this luxury tax imposed, but if it is going to be imposed, wait three years for the industry to adjust to it and think about, instead of a 10% tax rate at dollar zero, do it on a marginal tax rate so that you're not getting that cliff of 10% tax starting at $100,000. I think in your neck of the woods, in Regina and Saskatchewan, it doesn't take a lot if you're driving an F-250 or an F-350 and you're using it for construction to get a vehicle in that price range. Again, the disadvantage is the obvious challenges with respect to economic growth and parity.