The Luxury Tax of 1990

The Luxury Tax of 1990 was a federal tax imposed in the United States on certain high-end goods and services to generate revenue. It targeted items like expensive cars, yachts, and private jets, aiming to make wealthier individuals contribute more to government funding. The tax was intended to help reduce the budget deficit but faced criticism for negatively impacting luxury industries and jobs. Ultimately, it was repealed in 1993 due to its adverse economic effects, highlighting the challenges of balancing taxation with economic growth.