Summary: It's the Great American Taxing Game and you have chosen to tax luxury goods like yachts, fur coats, and expensive jewelry. Many people in the world today are suffering, but a small minority has plenty of money to spend on luxuries. It makes sense to tax these luxury items heavily and redistribute the wealth, right? Your host Prof. Art Carden explains that this isn't as clear cut as it first appears. There are many substitutes for luxury goods. A heavy tax on yachts, for example, is more likely to hurt the people building the ships than the super-rich who might decide not to buy one if the price is too high. Is taxing luxury goods the best option for raising government revenue? Don't forget to see what would happen if you taxed oil companies or cigarettes instead.
