For luxury goods, the state imposes consumption taxes on them, and some tax burdens are very high. However, companies will eventually pass this part of the tax burden on to consumers, that is, this type of consumer goods The selling price will be relatively high, and of course not many people will buy it because the consumer group it targets is high-income people, not ordinary people. Just like diamonds, not every woman has a diamond ring. , the state levies consumption tax on the sales of diamond jewelry. Most women who love beauty have to think more about it when they see the high price. Do they have to spend their savings to buy it? This is how taxes affect supply and demand!
The cost of high-quality luxury goods is very high. If you go to eat and have a plate of vegetables or a plate of abalone, for example, which one has a higher profit margin, the profit margin of vegetables must be higher, then you collect taxes from the vegetables. The profit tax rate is high, and it is still higher from abalone, so luxury goods do not mean that there is no cost. When making money, the higher the cost of luxury goods, the higher the cost, the lower the profit margin. It is just that the profit value is high. In the case of paying taxes, the same tax has already been lost. .
Taxation is for fairness, not first for a small number of industries and enterprises. Do they have enough so-called development space and so-called support policies? The core significance of taxing luxury goods is that this consumption belongs to a minority from the government and society, and is not encouraged or supported. This is not to encourage everyone to consume more luxury goods. Instead, we should encourage everyone to consume as little luxury goods as possible. The mainstream of social consumption advocates frugality and moderation, rather than extravagance, waste and excess.