U.S. Commerce Secretary Suggests Raising Taxes on Cruise Ships

Commerce Secretary Howard W. Lutnick

The Trump Administration is looking into imposing federal taxes on cruise ships in the United States, Commerce Secretary Howard W. Lutnick suggested during an interview on Fox News Live.

Mentioning the cruise industry as an example, he explained that Trump wants to “abolish the Internal Revenue Service and let all the outsiders pay.”

“Did you ever see a cruise ship with an American flag on the back? They always have flags like Liberia or Panama. None of them pay taxes, none of them,” he said.

“This is going to end under Donald Trump, and those taxes are going to be paid, and Americans’ tax rates are going to come down,” he continued, also mentioning “supertankers” and “foreign alcohol.”

According to the newly appointed secretary, the idea is part of the Trump Administration’s goal to balance the country’s budget and cut taxes.

Shares of major cruise lines plunged after the interview, which aired late Wednesday.

By Thursday afternoon, Carnival Corporation stocks were down nearly six percent, trading at $24.59, while Royal Caribbean Group shares dropped roughly 10 percent, reaching $240.71.

Norwegian Cruise Line Holdings stocks were down six percent, trading at $25.33. Viking Holdings’ shares lost almost four percent of their value, reaching $49.58 after Lutnick’s comments.

Stocks of Lindblad Expeditions Holdings were also down four percent, trading at $12.34.

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