On the other hand, luxury taxes on high wealth products means folks with more money have less propensity to walk away from a sale because of a tax. Poorer people would more likely walk away from extra tax. Additionally, what advantage is there to buying a car from out of the country unless there is a significant cost savings to go through all the trouble? Much like if you had a PST in Alberta, I doubt the PST would prevent rich folks from buying luxury items even though they currently enjoy a lower sales tax.
If the luxury tax is applied to things over $100, then it's not really a luxury tax as much as it is an everyday tax on private modes of transportation. That's a different story.
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