In 1990, the Democrats in Congress convinced President, read-my-lips, no-new-taxes, George H.W. Bush to sign into law a luxury tax on expensive boats, furs, aircraft, and automobiles. You know, all those things that the envious Democrats find to be disgusting toys and symbols of the rich and famous. Blinded by their ideological zeal to punish the wealthy, they truly thought this tax would help line the coffers of the federal government and reduce the deficit. But, the tax backfired. The revenues from it failed to materialize because the "rich" just stopped buying all those new toys; especially from U.S. manufacturers and suppliers. Many went overseas or north to Canada and south to Mexico to buy them. Then, too, they also bought used. After all, a 10-year old Ferrari is still a Ferrari and still quite the status symbol; maybe even worth more than a new one.
In the boat building industry, alone, more than 16,000 highly paid craftsman and workers lost their jobs. Others, too, not directly involved in the actual boat building, like mechanics and sales personnel, lost their jobs. Decades old, custom boat builders shuttered their doors, and some communities, who were primarily dependent on that industry, saw people move away to greener pastures; leaving it with barely any tax base to survive on. States lost sales tax and income tax revenues. And, the federal government lost income tax revenues from all those previously healthy boat builders and from the incomes of their workers.
Just, three years later, the Democrats and Bill Clinton quietly repealed the luxury tax.