Tax reform eliminated interest deductions on most forms of consumer credit except for loans on first and second homes, but the lawmakers left a large loophole for wealthy seafarers. Yacht owners can still treat their floating pleasure palaces as second homes if they contain a head and a galley (toilet and kitchen, to landlubbers) and sleeping facilities. Skippers can deduct the interest on loans used to buy their craft or obtain a yacht-equity credit line to cover the purchase of, say, a Rolls-Royce. "Aristotle Onassis would have loved this," fumes Republican Senator John Danforth of Missouri, a member of the Senate...
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