I'm intrigued by this issue of the luxury tax on boats.
I take some of the critique of luxury taxes in general seriously. I think that is a decent point. They don't tend to raise a lot of revenue. In my view, if we're going to address issues like wealth inequality, we should make the rich actually pay their income taxes. We should prevent them from hiding their wealth in other countries. If we did that, we would raise a heck of a lot more revenue than dinging them for buying luxury boats, airplanes and those kinds of things.
I think the comment that had a lot of us looking a bit quizzical, Ms. MacKinnon, was your indicating that the luxury tax is hitting the middle class hard. We heard some comments from my friend Mr. Lawrence along the same lines. I take the point as it was intended, but I wonder about your organization's definition of “middle class” and what income level that would include.
Could you share with us what incomes would be considered middle class?