The U.S. tax introduced in 1990 that applied to expensive goods such as yachts, private aircraft and jewelry was the luxury tax.
The federal luxury tax was created by the Omnibus Budget Reconciliation Act of 1990. It imposed a 10% levy on the portion of the sale price above specified thresholds for several high-value products, including boats, cars, aircraft, furs and jewelry.
The policy was intended to raise revenue from discretionary purchases associated with wealth. In practice, demand for some goods fell sharply, and industries such as recreational boating argued that the tax damaged sales and employment. Congress repealed most of the luxury tax on boats, cars, aircraft and jewelry in 1993, although the tax on expensive vehicles lasted longer.
It is commonly confused with a general excise tax. An excise tax can apply to ordinary products or activities, while this measure specifically targeted selected high-priced goods.