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Meh, you could lower taxes on inferior goods and increase them on luxury goods to compensate. Income taxes are pure evil as they are unavoidable and maximally p
by hellojesus 3y ago
Meh, you could lower taxes on inferior goods and increase them on luxury goods to compensate. Income taxes are pure evil as they are unavoidable and maximally painful. As an Oregonian, federal+state income tax means I don't make any money I get to keep until late April. I think about killing myself every year because of it.
- ksherlock 3y agoIn 1991, a 10% federal luxury tax went into effect. Result: rich people stopped buying yachts and planes. Revenue raised was a rounding error (less than $13 million in a year and a half), luxury industries were decimated, and the tax was repealed 2 years later.
- sircastor 3y agoSo the lesson learned here that very wealthy people are more interested in not paying taxes than they are in owning their own planes and yachts? I understand that $2.2 million is more than $2 million, but I find it kind of baffling that people spending that kind of money on that kind of thing are price sensitive.
- no_wizard 3y agoYachts and luxury boats yes[0] however it was effective on cars until 2002[1] however they still managed to collect $3.94 billion off the luxury tax by 2000[3] One could argue that if they had the stones to keep the tax in place, eventually people relent and start purchasing high ticket items again, and it could have compounded to make a significant difference by now [0]: https://www.baltimoresun.com/news/bs-xpm-1993-10-07-1993280118-story.html https://www.baltimoresun.com/news/bs-xpm-1993-10-07-19932801... [1]: https://archive.is/pTR5E https://archive.is/pTR5E [3]: https://www.everycrsreport.com/files/20020307_RS20314_f70eb82cf9b47bfb780bd7a057e8c6fe96d48eae.pdf https://www.everycrsreport.com/files/20020307_RS20314_f70eb8...