luxury tax

noun

1. a tax on certain goods or services not considered essential and usually relatively high in price.

Word History and Origins

Origin of luxury tax¹

First recorded in 1900–05

Example Sentences

Ohtani’s historic deferrals have kept the team’s actual payroll levels flexible, and seemingly made club executives more willing to pay luxury tax penalties long-term.

From Los Angeles Times

The NBA’s collective bargaining agreement has what’s called the second apron, a luxury tax threshold for spending on salary, and the further teams go past it and the more frequently they do so, they pay an increasingly higher penalty and it makes it harder to make trades.

From Los Angeles Times

“They could pay the luxury tax if they want to. The Dodgers talk the talk, and they back it up. They see a ball coming in, they take a swing — and, honestly, the last few years, they have been hitting home runs.”

From Los Angeles Times

The official name of the luxury tax is the competitive balance tax, but it has become less about competitive balance and more about providing owners a mechanism to restrain spending because they have been unable to persuade players to accept a salary cap.

From Los Angeles Times

Between just the three under contract — plus Yoshinobu Yamamoto, who will be 29 — the Dodgers will have a luxury tax hit of $130 million.

From Los Angeles Times