Great. So "not being taxed" becomes even easier - no tax loopholes required!
Unfortunately, this will also result in the government collecting too little tax and having to look at increasing tax rates or coming up with other ideas for taxation.
This system is basically being designed to fail.
It would also get rid of the inequity between income tax and capital gains tax, which benefits the wealthy a great deal.
There are easier ways to get rid of this obvious problem, such as not distinguishing between the sources of income in the first place. Some sources might possibly be exempt or don't fall under "income" (lottery winnings), but everything else is just added up as "income" and you pay your taxes on that.
If it does have this "critical mass" of assets, it has the potential to grow exponentially.
Ask the guys who make Fischertechnik instead. LEGO ist mostly for architects (with a little bit of engineering stuff thrown in); Fischertechnik is solely for engineers.
Such a device would be helpful, if not critical, for the success of colonies away from Earth. It doesn't matter if it's not very efficient, as long as it works, since it could help expand the colonies power generating facilities, life support, etc., and it's probably easier to outfit a colony with a big power supply than with all the chemical products in might possibly need.
They're also highly arbitrary, because you'll have some kind of government guy/committee/whatever deciding what's necessary and what constitutes various degrees of luxury.
Should a poor photographer who saves up a lot of money to buy one really great camera and lens be taxed more than the wealthy dentist (usually) who buys it and leaves it in the box?
Very good question. It's even more interesting if the photographer earns his living with photography, so the camera may not be a luxury, but an investment.
This system of taxation appears to be even more nightmarish than the current mess.
That leads to all kinds of issues.
How do you define "luxury item" for tax purposes?
How do you rate degrees of luxury in order to determine which luxury items are taxed how highly?
How do you deal with the inevitable black market/smuggling issues? Making something that is desired illegal or outrageously expensive pretty much automatically creates a illegal market.
What do you do when people stop buying the defined luxury items and your tax revenue plummets?
Just tax income, regardless of the actual source. I am convinced that todays level of tax revenues could be reached with far lower actual tax rates.
Also, for people with low income, taxing consumption is actually worse than taxing income, since the lower your income, the higher the percentage of it you must spend on consumption in order not to starve or freeze.
Why, if everyone else is super-intelligent, the last person on earth who can stand being just a janitor will make a killing.
If you have access to capacitors advanced enough to make this feasible, why should you bother putting batteries in cars?
What happens when you vent a few kilograms of tritium?
No, I'm not considering Kaveri a race car, but in comparison to Puma it has a lot more CPU horsepower.
That's just a matter of size. Fusion power release rises as a function of plasma volume, heat losses rise as a function of plasma surface, so just make it big enough.
A year or so would be nice, but shorter periods might be useful, too.