Quote:
Originally Posted by Oregon Elephant
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.
|
I am not saying that I would equate something luxury with something rare but with items that are only commmonly purchased by the rich. That is why if a survey could work to determine which items should be taxed more, that may work.
I suppose companies could have luxury items exempt compared with their size, but that would most likely cause a black market for luxury goods and tax evasion.
The luxury tax would only be a way to reduce taxes on the normal universal sales tax, so I don't know if it would harm companies too much because they would just be paying less on the normal sales tax.