   
|
|
Luxury Tax
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
A luxury tax is a tax on luxury goods. The luxury tax can be levied on any luxury item, with boats and cars being common targets. In the US, Congress established a luxury tax called the luxury auto excise tax in 1990. This luxury tax was levied on certain passenger vehicles priced above a certain threshold. That luxury tax was phased out in 2003. A luxury is a tax of a progressive nature, since only those with the means to afford the luxury item pay the luxury tax. If a luxury tax is not indexed to inflation it will eventually affect many more people than originally intended. For example, the New York State Additional Real Estate Transfer Tax, also known as the "Mansion Tax", is a luxury tax paid by the buyer on transfer of any 1, to 3 family home or cooperative or condominium apartment priced above $1,000,000. In New York City, many two-bedroom apartments now cost this much. While a two-bedroom apartment may not be a mansion, thus luxury tax still applies.
Rate this luxury tax definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: annual return, inflation, deferred tax, margin rate, open position, command economy, diluted share, current ratio, Key Rate Duration, in escrow, labor relations, option premium, cancelled check, deferred revenue, FICO score, 1035 exchange, stock split, LIBOR, average price per share, class C shares, wholly-owned subsidiary, stock market close, irrevocable trust, liquidity ratio, ex-dividend date, balance sheet, limit order, risk management, ex-dividend, Zero Cost Collar, quality assurance, 1031 exchange, FTSE, covered put, implied volatility, dividends payable, real GDP, APR, debt service coverage, 144a, minority interest, phantom income, 401a, VIX, required rate of return, per diem, EBITDA, reverse mortgage, retained earnings
|
|
| |