Sardinia To Drop Luxury Tax For The Wealthy

In 2007, the island of Sardinia put luxury taxes in place that affected second homes, private yachts and aircraft. There's a new governor on the Italian island and as part of his budget he is proposing doing away with the tax on mooring luxury yachts and landing private aircraft. Opponents said the taxes scared away the rich who came to stay on the island and hurt tourism.

One person delighting in the potential change is Italy's freespending Prime Minister Silvio Berlusconi. Berlusconi, who handpicked the new governor, Ugo Cappellacci to run against the previous governor Renato Soru, just happens to own a vacation home on Sardinia.