luxury taxes

    Many states have sales taxes-a tax added to the price of goods or services that people purchase. Our sales taxes here in Pennsylvania are higher than they are in some states, but they are luxury taxes. A luxury tax is a tax on things that people don't need. For the purposes of state sales taxes, that doesn't mean yachts and private jets. It means things you don't need to eat, drink, or wear, mostly. A luxury tax is not added to groceries, most clothing, books used for school, tools needed for work, or other items deemed necessary by the state legislature. So our sales taxes are actually lower than they are in many states where the sales tax is collected on everything citizens buy.