Luxury Tax

[blazespinnaker]

I'd really like to see a huge reduction in income tax and a very very hefty increase in luxury taxes.

Basically, an increase in taxes on real estate worth more than X, cars worth more than X, jewlery worth more than X, etc etc.

Income tax is a disencentive to earn. Why punish people who want to work hard? Punish people when they waste their money needlessly on things they don't need and do nothing for the economy except ruin the environment.

I don't believe a black market will occur because rich people aren't going to go to some seedy place to purchase their luxury goods, otherwise, what would be the point.

[Jim Nickerson]

Re: Luxury Tax

Who are those who must be the buyers of really expensive stuff?

Who are those who control those who make the laws?

If you can conjure an answer for one, you have the answer for the other.

Good idea blaze, but I bet it is a non-starter. I surely would not waste my time writing a lawmaker about that or anything else.

[blazespinnaker]

Re: Luxury Tax

Well, why wouldn't rich people want a reduction in income tax?

[Jim Nickerson]

Re: Luxury Tax

Well, why wouldn't rich people want a reduction in income tax?

Who can figure what the IRS would gain if it increases taxes on luxury items, which presumably the very rich buy, but then turns around and gives the very rich a reduction in federal income tax?

I expect something like that could pass if the net taxes by the very wealthy ended up being less.

[jk]

Re: Luxury Tax

your idea is basically a consumption tax with a significant standard deduction which would cover necessities. lots of economists would support you. unfortunately, such a system would gore a lot of oxen - the real estate industry would lose the mortgage interest subsidy/incentive, various depreciation games would disappear , etc- in general, it would not provide enough opportunities for the politicians to score points with their contributors.