EDITORIALS
A Dangerous Misconception The struggling U.S. economy continues to dominate
Perhaps, to the untrained eye all yachts—which are by
headlines as we the people try to determine whether it’s
defi nition any vessel longer than 26 feet that includes a head,
bouncing back or slipping further into despair. Hardly a
galley and sleeping berth—may appear to be Bentleys. In
segment of the society has gone untouched by the recession,
reality, they fall closer to Chevettes and cost no more than the
boaters and the boating industry not excluded.
price of a new car. The families enjoying them are like other
In the recession year of 2009, 16.5 million citizens managed to own their boats. Even more impressive was the discovery that 75 million people participated in boating. In December
hard-working Americans who own vacation dwellings such as cabins and cott ages; they simply opt for summer homes on water instead of land.
2010, NMMA reported in Great Lakes Boating that business
Th ree out of four U.S. boat owners have a household income
failures had ceased and manufacturers had seen production
of less than $100,000 per year. And, according to the National
numbers increase to 50 to 60 percent above 2009’s historic
Marine Bankers Association, 83.3 percent of boaters who
lows—a promising outlook to be sure.
fi nance their vessels earn less than $250,000 per year. For
Now three U.S. congressmen seem determined to hurt this population as it attempts to bounce back. On May 3, Rep. Mike Quigley of Illinois, along with Reps. Tim Walz of Minnesota and Gary Peters of Michigan introduced the
the most part, upper-class boat owners opt to pay cash. Those who do fi nance tend to own multiple vacation properties and therefore opt to apply their mortgage interest deduction to higher loans.
Ending Taxpayer Subsidies for Yachts Act, HR 1702, which
If this bill fails to hit its targeted population, it threatens to
would revoke yacht owners’ ability to deduct their mortgage
bring certain harm to boaters, the boating industry and the
interest payments.
communities that rely on boating tourism dollars. The “litt le
IRS Service Code Section 163 allows second-home owners
guy” ultimately pays the price should it pass.
to deduct mortgage interest payments for their qualified
The 4.3 million registered boaters in the Great Lakes generate
residences, up to two homes including a primary and
an economic impact of $9.5 billion annually. They support
vacation home, as long as their loans do not exceed $1
businesses in the communities where they live and visit. And
million. Properties to which this deduction applies include
behemoths hardly comprise the manufacturing industry;
cabins, condominiums, RVs, boats and other residences that
97.4 percent of them are small businesses, according to the
are not rented out or are used by the owner for more than 14
Small Business Association. The United States’ 15 million
days or 10 percent of the number of days they are rented to
recreational boaters who love the sport and have made it an
others at a fair price.
integral part of their lives will suffer.
So why are these congressmen singling out boaters? They’re
Don’t let these congressmen att ack boating and take away
out to tax the rich in an attempt to chip away at our national
a middle-class instrument of freedom. The Great Lakes
debt, and they seem to be under the impression that boating
Boating Federation urges boaters and industry members to
is a wealthy man’s pastime. However, most boaters are not
contact their representatives and voice their concerns about
wealthy. The congressmen’s misguided assumption reveals
HR 1702. Let them know that our pastime is not exclusive
how out of touch they are with the boating populations in
to the wealthy; it’s a family activity popular among average,
their own backyards—middle-class families out cruising the
working-class Americans. Tell them boaters refuse to be
Great Lakes on modest vessels.
singled out.
08 GLB | July/August 11