Quote:
Originally Posted by nik-
It's just populism. Lets be honest about it. It sounds good to most people and doesn't actually do much of anything.
A family with two earners making 100k a year could finance a 100k car and I wouldn't consider that wealthy.
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You aren’t taxing with a wealth tax because the person buying it is wealthy. Your taxing it because in a choice between taxing general income, groceries, transportation in general, or luxury cars twice as expensive as the functionally equivalent vehicle you want to choose to tax luxury.
It certainly is a nanny state value judgement but the concept isn’t to tax the wealthy it’s to tax excess.
The other thing is that the tax is relatively meaningless in terms of decision making. If I buy a 150k car today with tax is 157500. With the luxury tax it’s 167500. If that changes my decision to buy or not I probably shouldn’t be buying a 150k car. A 120k car only has a 4K luxury tax on it.