Quote:
Originally Posted by nerv14
Yeah, it would be incredibly difficult for politicians to determine what should be considered "luxury" and what shouldn't. If it was subjective then it would probably get out of control very quickly.
I suppose I can think of some objective ways to maybe determine what is a luxury item.
Possibly, a survey could be done of what items people of certain income brackets normally buy. That could determine what items the rich only buy, and those items can be considered "luxury" items. If the boundary of what is considered "luxury" could be increased to a very high level, it may be easier to determine what items the rich only buy.
However, a government or even private survey like that would have many problems...
If an item is purchased for someone's business then it would still need to be included in the tax, because then items would be bought at work and used at somenoe's house to avoid the tax. However, a guitar doesn't even need to be included with the tax if the cridentials for those items is high enough.
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There's a problem with equating luxury with rarity. There are something that aren't rare that are a luxury, and somethings that are rare that aren't a luxury. I mean most business equipment is very rare for the average consumer. Not many individuals will go purchase Quickbooks Corporate edition (at over $300), but many businesses need it to function, if we accidently call those luxuries, then that will raise business costs, will will raise their prices.
Prehaps you'd be able to allow for businesses to be exempt from so many "luxury" tax items each year. Or something to prevent that from accuring.