[Always Right]

That was on top of income and business taxes, not instead of them which is the proposal at issue here.

And that matters because? The purchase of yachts did not go down because rich people all of a sudden could not afford to pay the extra 10% because they also pay income tax, but they just saw it as a waste and could not rationalize throwing 10% down the drain. Many probably went overseas and bought yachts to avoid the sales/luxury tax.

[coloradan]

It matters because it isn't an apples to apples comparison. People's incomes will jump at the same instant prices rise, because at the moment the NRST takes effect, income taxes (e.g. withholding) vanishes. Of course purchases will drop with a sudden jump in prices, all else being equal.