luxury tax

Noun

luxury tax (plural luxury taxes)

1. Any tax on the sale of items not considered to be essential to a reasonable standard of living, for the purpose of increasing revenue, discouraging the use of certain articles, or both.
   • He has suggested raising “sin taxes” on cigarettes, liquor and arcade games to pay for the 24-percent teacher pay raise he supports.1963 May 1, Kathryn Baker, “White Facing Realities: Time, Cash”, in Victoria Advocate, Texas, USA, retrieved 29 Sep 2012, page 16A
   • Another form of consumption tax that some foresee is a “sin tax”, which would come in the form of higher excise taxes on alcohol and tobacco.1988 Dec. 19, Jan M. Rosen, "Tax Watch: The Likely Forms Of New Taxes," New York Times (retrieved 29 Sep 2012)