Starting September 1, 2022, Canada introduced a luxury tax on specific vehicles, aircraft, and vessels, mirroring systems in major North American sports leagues. The article draws parallels between Canada's luxury tax and those in professional sports, particularly focusing on the National Basketball Association (NBA) and Major League Baseball (MLB). The NBA's system features a fluctuating luxury tax threshold, tiered rates, and penalties for repeater teams, while MLB's Competitive Balance Tax (CBT) imposes penalties and potential consequences for teams exceeding the threshold. The article explores the impact on team spending, competitive balance, and ongoing debates about the effectiveness of luxury tax systems in sports leagues.