英文摘要 |
After experiencing the global financial crisis and the European debt crisis, most governments have tended to cut their budgets. Although imposing a tax on luxury goods is a good way to increase government revenue, it also induces negative consumption externalities and thereby leads to a possible distortion in economic behavior. In addition to a theoretical demonstration of the negative influence of a luxury tax on economic growth and the capital stock, this paper, more importantly, theoretically deduces the timing for starting the exit mechanism of the luxury tax, which is related to several economic conditions. In addition, we simulate the optimal luxury tax for Taiwan. Our results should serve as valuable reference to policy-makers. |