Quote:
Originally Posted by Enoch Root
The other problem with it is that it doesn't increase taxes, it forces a redistribution.
Take auto sales as an example. Large ticket items are where dealerships make their profits. Adding the luxury tax reduces those sales. It also forces the dealership to provide incentives to bring those sales back, cutting their profit margins. That means reduced incomes and staff at the dealership - bad economically.
Then there is the problem of: which luxury items should be taxed? The government ends up picking winners and losers. Taxes need to be universal and fair. Random luxury taxes are the furthest thing from universal.
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Yeah I think I agree it isn’t really practical but I like the concept of taxing excess.