Why do countries add a tax onto “luxury vehicles”? Just seems like another way to sting the customer another unnecessary tax?
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Luxury goods are bough by wealthy peoples who have more than enough money to live confortably, thus can pay more taxes.
It’s a good way to get more money to the governement without hitting the middle/working class.
Luxury good taxes have a few advantages over an higher income tax: they can effectively tax wealth coming from non income sources, and only affect non-essential spending (so people w/ high income, but also high spending on essential stuff such as rent aren’t affected).
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