Luxury tax

The luxury tax is a tax that is levied by the government on goods and services that are considered luxury. The control can be configured as a property tax on the ownership of luxury goods or as a transfer tax on the purchase of luxury goods (typically as a luxury sales tax or increased sales tax on luxury goods ). Since the question of what is to be regarded as a "luxury " can not be answered objectively, is the ( demand for ) luxury tax sometimes a political slogan.

• 2.3.1 luxury tax of the City of Vienna in the interwar period
• 2.3.2 luxury tax 1978-1992

Objectives

Proponents of luxury taxes call the following objectives.

The last point is the subject of economic literature. The question of whether luxury consumption can be reduced by luxury taxes ( desirably ) is questionable. Generally leads to the neoclassical theory, a tax to a price increase ( by pass-through to the end customer ) and thus to a market equilibrium with lower sales. While some authors see this relation also for luxury taxes, other authors see no steering effect: The benefits of luxury is that luxury goods are so expensive that they can not afford any. In order for price increases will not necessarily lead to a reduction in demand: The status of the buyer rises through the acquisition, because the luxury has become more expensive and therefore increases the demand.

Individual countries

Germany

In German history existed, for example, the control bodies, in Prussia the servants tax. Similarly, existing even today dog tax in Prussia was initiated in the year 1810 as a luxury tax for the first time.

Luxury tax ( Weimar Republic )

In the Weimar Republic existed from 1919 to 1926 a luxury tax in the refinement of a luxury sales tax. There was an increased rate of turnover tax ( the surcharge was initially 15%) for certain luxury goods, which was regulated in § § 15-24 of the VAT Act of 24 December 1919. The luxury tax was highly controversial. The liberal Reich Finance Mister Peter Reinhold described the luxury tax as the " most dangerous and senseless " control, since these besteuere the German quality work. The tax liability on the sale of works of art was seen as harmful to the art world.

On 1 October 1922, the catalog of the affected luxury goods has been reduced. The tax rate was lowered to 10% and from April 1, 1925 January 1, 1925 to 7.5%. With the law on tax mitigations to facilitate the economic situation by March 31, 1926 in addition to the luxury tax, the tax on salt and the wine tax was abolished and reduced the fusion tax and the VAT rate. The reason was a purely fiscal: The cost of collection exceeded the tax income considerably.

Italy

To cope with the debt crisis is introduced into Italy under the new government, Mario Monti, a luxury tax, the private aircraft concerns.

Austria

Luxury tax of the City of Vienna in the interwar period

With the separation of Vienna Lower Austria on January 1, 1922 was the city of Vienna, how to 1934 always called the city, as a separate state of the financial sovereignty. Financial Councillor Hugo Breitner led in 1923 to introduce a state tax system that was created computationally extremely progressive. These taxes included the housing tax, a tax which had to pay per job, who employees in his household employed ( " Hausgehilfinnensteuer "), a luxury tax on luxury goods (eg champagne) and amusements such as balls ( " entertainment tax " ).

Luxury tax 1978-1992

In Austria, a new third rate of tax in 1978 was set at 30%. This ( colloquial ) luxury tax was levied on cars, jewelry, watches, furs and consumer electronics. The " luxury tax " in 1987 accounted for partly and 1992 entirely, and was replaced at cars through the consumption tax ( Nova ).

USA

In the U.S., the luxury tax was abolished in 1993 only a few years after the introduction again.