Raising the tax rate on essential goods -- a traditional means of increasing government revenues -- invariably turns low- and middle-income taxpayers against the government  Hence government officials have proposed adding a new tax on purchases of luxury items such as yachts, private planes, jewels, and furs
The officials claim that this tax will result in a substantial increase in government revenues while affecting only the wealthy individuals and corporations who can afford to purchase such items
Will sales of the luxury items subject to the proposed tax occur at current rates once the proposed tax on luxury items has been passed.