First, the luxury tax policy objectives
一、奢侈品税的政策目标
With the UK economy miraculous rate of growth , the rapid rise of the new rich class , to carry out golf and purchasing yachts, luxury cars and luxury watches rapid rise to become Britain 's affluent minority are keen consumer activities .随着英国经济奇闻般速度的提高，新富阶层迅疾崛起，开展高尔夫运动以及购买游船、豪华型轿车和高档名表变成英国少量迅疾崛起的殷实人海所热衷的消费活动。September 2005 , the United States , Ernst & Young in Beijing issued " Britain : The new wave of luxury ," the report pointed out that the British luxury goods market with annual sales of approximately $ 2 billion , and is expected before 2008, the British luxury goods market sales annual growth rate will reach 20 % in 2008, after the annual growth rate of about 10% ; 2015 British luxury market sales will exceed $ 11.5 billion , accounting for 29% of total global consumption . In stark contrast, in the UK urban residents per capita disposable income reached 10,493 yuan in 2005 , per capita net income of rural households was only 3,255 yuan , while the United Kingdom there are 30 million subsistence farmers issues to be resolved . The rapid economic development on the one hand , the other is the acceleration of social class differentiation , the income gap is growing. Pure market regulation clearly has some limitations, governments need to draw on a variety of economic , legal and administrative means to market allocations corrected. April 1, 2006 to adjust the consumption tax , the luxury watches , yachts and golf balls and equipment and other luxury goods into the tax base , it is hoped to " rob the rich " approach to narrow the growing gap between the United Kingdom .2005年九月，美国安永会计拜某人做师傅务存在的地方北京宣布《英国：新的奢侈风潮》报告陈述，指出英国过分享受品市场的年销行额约为20亿美圆，并预计2008年之前英国过分享受品市场销行额的年提高率将达到百分之二十.
It should be noted that since the luxury tax is based on the distribution of income for the purpose of adjusting the policy desired result should be to charge more for high-income taxes, in order to enhance the government through transfer payments to help low-income groups and the underlying strength It is definitely not inhibit the luxury market , to prevent high-income luxury consumption . In fact, a sophisticated luxury market is a source of government tax revenue luxury , but also the use of transfer payments to the government to redistribute foundation.需求注意的是，既是对过分享受品课税是以调节收益分配为目标，政策所期望的最后结果应当是向高收益阶层交来更多的征税收入，以加强政府经过转移付出帮忙低收益整体的实在的力量和基础，而绝非制约过分享受品市场、杜绝高收益阶层的过分享受性消费。
Second, the luxury tax policy effects analysis
In the UK, the luxury consumer groups can be roughly pided into several different levels : first, top billionaires , they are truly noble , consumption of luxury goods emphasis on quality and detail , focusing on taste and culture. Followed by the affluent middle class , they are the main force of the British luxury goods . At the same time , not rich but no lack of desire to buy a group is on the rise .
( A ) luxury tax on consumer behavior
1 on the top rich consumer behavior
Although the great majority of people, compared to the same desire , monetary wealth is always limited. But as the dominant market leader in the luxury group 's top billionaires wealth is almost close to infinity, their spending power is limitless. According to long-term follow-up study English Hurun rich estimates , the United Kingdom has accumulated more than 10 million U.S. dollars of wealth has 50,000 people , of which there are 200 people of wealth over 100 million U.S. dollars ( Note : Zhou Kai : "The survey shows : British middle class luxury reaction positive " ," British Youth Daily ", November 30, 2006 . ) . Because a great abundance of wealth , this kind of crowd in any amount to purchase any goods are not exhausted their wealth , the desire for luxury and requirements almost completely absent affordability restrictions and constraints , so they are not present consumption possibilities curve . For them, the luxury is not just the accumulation of wealth and social status symbol , more a way of life and life style. In their eyes , the so-called luxury goods is actually a necessity , and thus their consumption very rigid , the price is not the focus of its attention , while the price impact of change on their real wealth can be negligible. So, even on luxury tax resulting rise in commodity prices , the consumer behavior of top billionaires who hardly affected.
2 for the middle class consumer behavior
English is the main force of luxury consumption affluent middle class. According to the British Association Yang Qingshan General Brand Strategy Research , a monthly income of 20,000 yuan to 50,000 yuan is more typical of luxury consumers , the total number of about 13 million ( Note: Lu Wenjun , Yu Lihong : "Not rich extravagance luxury Exhibition opening get together : how can the UK public the 'rich ' ? "," Economic Information Daily " , October 20, 2006 . ) . According to their spending habits, can be pided into A , B two types: Type A consumers are mainly of Western culture and the brand has been recognized entrepreneurs and fashionable people , the purchase of luxury goods , known not only for the product , it is in order to find a suitable product , this category of consumers called the British luxury goods market is relatively rational consumers ; while Type B consumers was " not the best, but for the most expensive ," a typical representative, their rationality is not Obviously , they are relying on television or magazine ad buying market, the most famous , the most expensive product , the purpose is to flaunt their own economic strength.
Two types of middle class consumers of luxury goods based on their understanding and awareness of different cultures , their purchase and consumption of luxury goods brought to meet varying degrees , which has different shapes utility indifference curve . Figure 1 ( a little ) , the horizontal axis represents the amount of taxable luxury , the vertical axis represents the amount of duty-free goods . AB is the pre- tax consumption possibilities curve , AC is taxable after consumption possibilities curve . CPI consumer's indifference curve is convex to the origin point of the traditional downward-sloping curve, while B luxury consumers because of its particular importance to show off function, and its indifference curve can be regarded as almost perpendicular to the horizontal axis . For the former , the initial consumer equilibrium point E1 point , because of the luxury tax led to higher prices , the substitution effect allows consumers to replace taxable goods duty-free goods , and thus the consumption of taxable goods declined ; Meanwhile, the lesson taxes rising commodity prices so that consumers in the case of constant nominal income decreased real income , the income effect will be decreased for all consumption of goods . Thus , the final consumer equilibrium point in the E2 . For the latter , the initial consumer equilibrium at point B , as a luxury for the consumer's utility tends to infinity , because consumers will not give up the prices of luxury goods for the purchase of luxury goods , on the contrary , only the high price to show their status and strength, and therefore there is no substitution effect . However, prices rose after the income effect of their consumption behavior still exists , the final point of consumption equilibrium at point C , the consumption of luxury goods declined .
Be seen, for the middle class, regardless of their purpose and habits of consumption of luxury goods to the luxury price increases are likely to lead to the decline in consumption , although the decrease in consumption will vary .
3 pairs not wealthy consumer groups, consumer behavior
Money to buy luxury goods is certainly not poor , but rich to what extent people are willing to buy luxury goods , depends entirely on personal preference. In addition to having the luxury market, affluent consumers , but also there is not a lot of affluent consumers . According to Nanjing University Professor Du Junfei analysis of the world's luxury goods consumption average is about 4% of their wealth to buy, while in the UK , with a ratio of 40% or more is not uncommon for the purchase . So Britain a " ' overdraft ' luxury ", who are mostly white-collar workers a monthly salary of several thousand dollars , and its consumption of luxury goods far exceeds its own financial resources. Slaves, car slaves, slave card is a true portrayal of the consumer groups .
In addition , there is a class of purchasers of luxury goods are not really sense the final consumer , and its purpose is to buy luxury goods gift , to be called "ritual slavery ."
Whether buying for personal use or gifts , as this part of the consumer to some unusually strong desire to buy luxury goods , rising prices caused by the substitution effect is very small, almost negligible , however, limited by its own purchasing power , price changes brought about by the income effect will be very obvious. Luxury price changes impact their behavior may refer to Figure 1 - B consumers .
4 Summary
Economics tells us that commodity taxation lead to price changes on consumer behavior can be decomposed into the substitution effect and the income effect. Through the above analysis, the luxury tax after the top rich class almost does not change consumer behavior . However, this class on the market , after all, only a handful of luxury consumers . According to the British Association of brand strategy research suggests that the UK Mainland, luxury consumer groups have now reached 13% of the total population , or about 160 million people . Therefore, even though the vast majority of consumers do not care about the price of the taxable luxury in itself changes, but the decline in real income will affect them for all commodities ( including taxable goods and duty free goods ) consumption . Since the income elasticity of demand for luxury goods is greater than 1, that reduced demand is greater than the magnitude of the decrease in revenue , so the luxury tax causing prices to rise so that the decline in real income affect the demand for luxury goods is much larger than a necessity under the same conditions demand impact .
( Two ) the reality gap between policy objectives and results
1 Efficiency Sacrifice: difficult to develop a mature domestic luxury industry
As previously analyzed , except in a very few top rich consumers , the vast majority of consumers will be taxable because of reduced prices of luxury goods consumption , making it difficult to ensure that the taxable maintained before the luxury market scale . As the UK's current luxury consumption tax is mainly for golf balls and equipment , yachts, luxury watches and other products imported from abroad , so the market is shrinking most immediate consequence will be a reduction of imports . But luxury tax on the domestic luxury goods industry will obviously impact should not be ignored .
To the yacht , for example, according to the Shanghai Association of Shipbuilding Industry 2004 statistics provided , in today's world shipping market, the yacht industry in the international community have an enormous market share. International yacht sales up more than 2000 yuan, and ocean transport vessels considerable ; plus yacht accessories, water sports equipment , with annual sales totaling more than 3,000 yuan, even more than the developed countries of the merchant marine and offshore marine transportation ships in sales. Admittedly , the yacht industry in the UK has a huge potential for development. Not to mention the UK 18,000 km of coastline, the Yangtze River , Yellow River, Pearl River, Heilongjiang , and many other river systems, 6,500 islands, and 24,800 lakes, good natural resources, the environment and conditions , the current output of the British shipbuilding industry has been for 10 consecutive years, ranking first in the world 3 , second only to South Korea and Japan , ship repair sales amount is more than Japan and South Korea . The rapid growth of the shipbuilding industry will undoubtedly bring boat industry. However, domestic yacht manufacturing industry is still in the state of stragglers , companies generally small scale , backward technology, lack of technical expertise , lack of skilled workers as well as the standardization of ship fittings or ancillary nature are to be improved . According to the British Shipbuilding Research Institute of Statistics , as of the end of 2004 , the British domestic yacht manufacturing enterprises have more than 260 , more than 10 million yuan annual output value of more than 30 enterprises only .
Apparently inseparable from the development of manufacturing consumer driven . In the UK, some of the luxury consumer market size also need to nurture . The fact that in July 2004 , in Hangzhou Peace International Exhibition Center , Zhejiang Province , held the first new museum leisure boat show , exhibitors and visitors were due to meet expectations , the organizers of the compression spending three days after the exhibition had to be canceled the original yacht economic Forum held in preparation , yachts and small-scale industrial investment forums substantive trade talks and other activities.
Visible , does not represent the potential market capacity . Although the British yacht industry and its downstream industries yacht entertainment and service industry has a very attractive prospect and development of space , but the potential demand into real consumer spending power still takes time for the luxury tax will obviously slow down the process, thereby disrupt the domestic luxury goods manufacturing industry developed .
(2) Fair Missing : luxury tax revenues may be more ordinary people from the community
First, a large number of luxury drifted outside the scope of assessment . Consumption tax levied on luxury purpose is actually very clear , for high-income earners heavily taxed in order to safeguard social fairness . But the British luxury tax assessable current range is very narrow , perhaps because the concept of luxury is difficult to define , but also perhaps because of tax collection and management as well as technical reasons , a lot has been universally recognized luxury tax not included in the scope . Figure 2 reflects the British affluent have kinds of luxury goods , including golf , cigars , wine , luxury cars, yachts have been included in the scope of consumption tax are , but 67% of wealthy people do not respect their own villa tax , 2% of people who do not respect their own private jet tax . This is just one of the few tangible luxury is concerned, as a large number of high consumption behavior , Cantabile discos, nightclubs, golf course , sauna and massage and other projects is outside the scope of alienation from the luxury tax . Meanwhile, luxury determine its own characteristics between high alternative . When rational consumers turn to give up the luxury consumption of duty-free luxury goods taxable when bound to the loss of tax revenue , the government through transfer payments for macro-control ability is clearly being undermined.
Second , the public irrational consumer behavior . In fact, consumption tax levied on luxury implies an assumption that consumers must buy luxury high-income groups. However, the current public opinion to promote, the bombing of foreign brands , domestic exhibition after another , and the media sought to create a UK consumer abnormal immature luxury consumer psychology and consumer markets . British luxury goods consumers are in fact a large part of policy-makers may not have imagined a high income, " ' overdraft ' generosity, " is proof. When a large number do not have the luxury spending power of consumers to enter the luxury market , and will soon become the most important consumer market , the luxury tax may be more tax revenue sources from the majority of ordinary people rather than the policy initially set of high-income groups . Fair obviously difficult to be guaranteed.
Third, the conclusion
As mentioned above , the UK tax on luxury goods is likely to impose high taxes on the rich minority bane of society while the general public , and rational choice changes in consumer spending will lead to the loss of tax revenue , enabling the government to achieve equitable income distribution, lack of necessary financial support ; and because the tax brought shrinking luxury market may curb the growth and development of the luxury industry . So how should a professional and sophisticated design of the system so that specific taxes to ensure a fair while minimizing the loss of efficiency , or increase efficiency at the same time as much as possible to ensure a fair , will be a future tax reform process need to be addressed important issue.