In tiers.
People that buy $125,000 cars are likely those same people.
We have much higher than normal income in retirement, and we would be foolish to drop an eighth of a million a car.
The tags could go down each year based on FMV, but the average over x years (10?) would be at least break even.
Wealthy people replacing cars every 3 years never get those last 7 years of declining cost. So, they're paying a higher rate of a higher rate. Sounds confiscatory, but it's not, because it's an overall tiny fraction of income. Too small to cause harm.
The FMV of the cars could be tiered. $2,000-12,000/$12,000-24,000, etc.
Now, someone of modest means getting a great job opportunity that's 30-40% would be paying based on the value of the car, not their income. Eventually, that better income leads to enough $ for a better car, and then their tag price goes up. Gives them a short term reprieve.
I suppose very wealthy people driving a 10 year old Town&Country or Focus would fall through the cracks. But, I'm guessing there aren't many of those.
I thought of this a while ago because it seems easier to regulate & even more progressive.
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