First District DFL Rep. Tim Walz introduced a bill today aimed at eliminating a tax break enjoyed by luxury yacht owners.
Walz joined with Illinois Democrat Mike Quigley to introduce the "Ending Tax Subsidies for Yachts Act." The measure would no longer allow yacht owners to use the mortgage interest deduction to write off their ships as second homes.
"Closing this tax loophole is a no-brainer step to cut down on wasteful spending. The Mortgage Interest Deduction was made to help middle class families own a home and achieve the American Dream, not to subsidize yachts for the super-rich," Walz said in a statement.
The Joint Committee on Taxation estimates Walz's bill would save more than $150 million.
This isn't the first time Walz has gone after the yacht tax break. He introduced the same bill in the previous session. It never got a hearing in the Republican-controlled House.
