The argument you make that a sales tax would inflate the prices of ‘crap nobody needs’ such that people come to the realisation that they don’t actually need it is really quite flawed.
In this scenario your Average Joe would walk into an Apple store with all his extra prebate money but then be condemned to stare aghast at the prices because they’re now thrice the price he would’ve paid before he was receiving his prebate.
How do you think he’d react? Would he think, ‘well the government knows best and I have no reason to doubt that this is in my best interests’ or would he be vehemently opposed to this overreach of government?
Perhaps it is true his community would be better off if he’s economically incentivised to do something like picking up a book about electronic submersible pumps, then becoming a top notch petroleum engineer. In any case, exercising this monarchical power to influence consumer choices requires a serious mandate by way of justification.
Also, although luxury goods get a bad rep because of their tendency to arouse jealousy or disgust (often in equal measures), many of these goods are made by contemporary masters of their art. Many goldsmiths, tanners and jewellers might turn their expertise into a handful of items a year. Simply because their work commands enormous prices shouldn’t mean these often small family businesses should be penalised.
On another note, it really is crazy how over the years legislators have just let this purulent boil swell and swell to the point that now any sudden movement and we’ll all be drenched in puss.