It’s rare when we Fiscal Conservatives have as clear a teachable moment as you gave us with your decision to berth the Isabel (pronounced “luxury yacht”) in Newport, RI, instead of Nantucket, MA, where you and Teresa maintain a “cottage”.
Again, we thank you.
And, while we’re at it, we’ll point out that you are a hypocrite of the first rank.
Isabel – Kerry’s luxe, 76-foot New Zealand-built Friendship sloop with an Edwardian-style, glossy varnished teak interior, two VIP main cabins and a pilothouse fitted with a wet bar and cold wine storage – was designed by Rhode Island boat designer Ted Fontaine.
But instead of berthing the vessel in Nantucket, where the senator summers with the missus, Teresa Heinz, Isabel’s hailing port is listed as “Newport” on her stern.
Could the reason be that the Ocean State repealed its Boat Sales and Use Tax back in 1993, making the tiny state to the south a haven – like the Cayman Islands, Bermuda and Nassau – for tax-skirting luxury yacht owners?
Cash-strapped Massachusetts still collects a 6.25 percent sales tax and an annual excise tax on yachts. Sources say Isabel sold for something in the neighborhood of $7 million, meaning Kerry saved approximately $437,500 in sales tax and an annual excise tax of about $70,000.
We fiscal conservatives applaud your tax avoidance, not to be confused with tax evasion, which is a crime.
There’s nothing at all unethical or immoral about tax avoidance. It’s human nature. If I choose to take a state highway instead of a toll road, that’s my choice. In your case, you have wisely chosen to take delivery of the Isabel in RI to avoid your home state’s onerous sales taxes. You have chosen to berth it in Newport, at some inconvenience, because RI has chosen to become a tax haven of a sort; they are exploiting MA’s high tax regime precisely because it attracts the activity they want to attract, which in this case is berthing luxury yachts. They get to enjoy all the ancillary economic benefits that go along with supporting the leisure class.
I’ll quote a relevant factoid I picked up in this month’s American Spectator: the top 1% of the population (that includes you & Teresa) bear a larger tax burden than the bottom 95%. That’s progressive taxation for you. President Obama (and you, I’m sure), think our tax code should be even more “progressive” — the “rich” should pay even more.
But here’s where your hypocrisy comes in.
We fiscal conservatives are not jealous of the rich. Some of us aspire to be rich someday, too.
We think it’s wonderful that you choose to spend your hard-earned money (or, more precisely, the money that both you and Mrs. Kerry married in to). Although, in these hard-pressed times, wouldn’t an American yacht builder have been a better choice? Maybe we have already taxed those out of existence; I wouldn’t know, since I haven’t been yacht-shopping lately.
In comparing the burdens of the top 1% & the bottom 95%, we glossed over the 95 to 99 percent class. The top 1%, like you and Teresa, is the municipal bond class. You are interested in preserving, not risking, your nut. You’ve got so much dough that you can invest it in low-yielding tax-free or tax-advantaged investments, and still generate enough income to buy, say, a New Zealand-built luxury yacht.
The ultra-wealthy also have the means to hire legions of lawyers and accountants to help them avoid taxation if they think it’s excessive. They also maintain multiple domiciles and high mobility so they can switch assets around to take advantage of lower tax regimes, just as you did by berthing the Isabel in RI.
The 95 to 99 percenters, on the other hand, are mostly successful folks with middle class roots who’d like to achieve 1% status. You’d like to keep out the hoi polloi, and the progressive tax code helps do that by making the slope extremely steep for the 95 to 99 percenters.
The problem with all that is that the 95 to 99 percenters are the entrepreneur class and small business owners who create most of the jobs in a free-market economy.
The progressive tax code hurts you not a whit. It punishes the successful 95 to 99%ers, and it indirectly punishes the bottom 95% by hindering job creation.
Aaron Gardner
Steve Maley
KnightsofMalta
Kerry is a tax dodger like the rest of them.....
Wubbies World (Diary) Saturday, July 24th at 11:46AM EST (link)I was just reading an article where it was said he was seen berthing in Nantucket. According to Mass law, if he docks it in Mass, he will still have to pay the taxes, so he may be stuck paying it anyway.
It is almost funny if the crassness of the libs wasn’t so sad.
Join The Red State Strike Force
><> If It’s Worth Doing, It’s Worth Doing Right The First Time.
You're assuming that MA would send him a bill?
bk (Diary) Saturday, July 24th at 12:56PM EST (link)I suspect not.
Sunshine is the best cleanser
Wubbies World (Diary) Saturday, July 24th at 1:41PM EST (link)I suspect that this story becoming so prominent in the news will leave them with little choice, but I have been wrong before.
Join The Red State Strike Force
><> If It’s Worth Doing, It’s Worth Doing Right The First Time.
Taxes for Thee but not for Me
tonigoodman Sunday, July 25th at 8:40AM EST (link)I will do my best not to let the voters forget. They forget they were voted in to govern. They behave like a ruling class.
http://www.thenextuselections.com/html/ma_senator.html
what? John Kerry is a Berther?
speciallist (Diary) Saturday, July 24th at 12:06PM EST (link)who knew
Oh, that's *clever*.
Moe Lane (Diary) Saturday, July 24th at 12:10PM EST (link)Nice.
The Kim Kardashian of blogging.
Check out my blog at http://moelane.com/.
http://moelane.com/filthy-lucre-filthy-lucre/
http://twitter.com/moelane
My (combined) wish list.
No brain cells were harmed...
speciallist (Diary) Saturday, July 24th at 12:29PM EST (link)in the creation of that joke
555
throwback59 Saturday, July 24th at 12:11PM EST (link)Excellent!
Sooo...
anotherindyfilmguy (Diary) Saturday, July 24th at 2:09PM EST (link)If he’s out sailing away from the state revenue officers does that make him a drafty tax evader?
Santorum? Well, at least he’s not Romney…
http://www.zazzle.com/enemy_of_the_statist_tshirt-235977043035297478
5^?
6eorge Jetson (Diary) Saturday, July 24th at 5:47PM EST (link)I prefer the Eric Cartman cover. nt
Steve Maley (Diary) Sunday, July 25th at 9:00AM EST (link)The blogger formerly known as ‘Vladimir’.
My favorite cover would be someone donning a Lurch mask
6eorge Jetson (Diary) Monday, July 26th at 8:21PM EST (link)to mock the Senior Hypocrite from
MassRhode IslandHa! IRS should dock his pay. Nt
Common_Cents (Diary) Monday, July 26th at 10:28AM EST (link)Obama=Golfer in Chief, Leading from,
behind, the Back Nine.Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.
Now let's keep an even keel over this! nt
sccrenny (Diary) Monday, July 26th at 5:34PM EST (link)When I look at Barack Obama I don’t see black. I don’t see white. I do, however see RED! It’s the same color I see when I look at Pelosi, Reid, ACORN, SEIU…
Precinct Delegate since 2010
Kerry tried to give them the slip. nt
Common_Cents (Diary) Tuesday, July 27th at 2:33PM EST (link)Obama=Golfer in Chief, Leading from,
behind, the Back Nine.Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.
Yacht building has pretty much been taxed and regulated out of the US.
Achance (Diary) Saturday, July 24th at 12:09PM EST (link)That’s especially true of sailing yachts. There is still some powerboat building in the US but mostly it is specialized high-dollar sportfishing yachts. There is a bit of a West Coast business in trawler-type long distance cruisers, but pretty much the only thing that keeps American boatbuilding alive is that you can’t carry passengers for hire unless you have an American-built bottom. There is a huge business in berthing charter yachts in the Caribean or in Mexico both to avoid the price of an American bottom and to avoid US taxes. Many states put stringent limits on stay lenght in an attempt to capture taxes from visiting vessels. Of course, that cuts into the busines of other entities that might profit from the vessel’s stay. There are several 100′+ vessels in the public harbor next to my marina right now. Neither the State nor Juneau tax boats and only regulate the largest ones, so we have a big, big yacht traffic every summer. I’ve seen most of Power and Motoryacht’s Top 100 yachts over the years. We could actually use a good bit more dockage for larger vessels because so many stay on the hook and lighter because there is no room for them. Transient moorage fees for these large yachts are several hundred dollars a day, they buy fuel, stores, their passengers and crews shop in town and hang out in the bars and restaurants, though I’m sure the cuisine on most of them is better than anything you can get here. Of course, Juneau’s high costs have an effect even on this business as many people who own larger boats here keep them over in Hoonah, about sixty miles away, to save on moorage.
In Vino Veritas
The color of money is mostly white, a few visiting yachts:
Achance (Diary) Saturday, July 24th at 12:50PM EST (link)http://spotted.juneauempire.com/galleries/374378/
There is, or was before 2008, a pretty large mass market boat building business still in the US and some are considered yachts – there really isn’t a definition of the distinction between a boat and a yacht. Boater joke that if it has three or more windshield wipers it is a yacht. Bayliner, the biggest mass market boat company once marketed their biggest boats as their “Motoryacht” series and they were very nice boats and exceptional values, but they were tarred by the Bayliner “cheap” image so Brunswick spun them off into the Meridian line that makes only the larger more expensive boats.
In Vino Veritas
Taxachussets Rules
edintexas Monday, July 26th at 6:36AM EST (link)Achance wrote: “Many states put stringent limits on stay lenght in an attempt to capture taxes from visiting vessels”. I have read that the importance of observing the berthing in Nantucket is that it occurred within 6 months of purchase. The MA sales tax rules stipulate that if a boat is berthed (even for 1 day?) in MA within 6 months of purchase, then the sales tax is due the state. Oops.
Much of this applies to the 90%-95%
JoeG Saturday, July 24th at 12:37PM EST (link)Many in that bracket are also as you describe. Many are small business owners that employ others.
A lot of them are paying the AMT so they get hit hard by taxes, but obviously not as hard as those that earn more.
You're right.
Steve Maley (Diary) Saturday, July 24th at 7:41PM EST (link)For that matter, it probably applies to the top quintile.
The point being, high tax rates make for a steep slope for achievers to climb. This hinders job growth & upward mobility.
The blogger formerly known as ‘Vladimir’.
And on top of avoiding taxes and shipping jobs overseas
bk (Diary) Saturday, July 24th at 12:58PM EST (link)shouldn’t he just use a wind-powered sailboat instead of something that’s causing us all to choke to death on his carbon emissions?
Your carbon footprint doesn't count...
Steve Maley (Diary) Saturday, July 24th at 1:05PM EST (link)…if you have lackeys manning the scuppers, or whatever it is they do on a luxury yacht.
The blogger formerly known as ‘Vladimir’.
It is a "sailboat," but probably spends as much time on its engine
Achance (Diary) Saturday, July 24th at 1:22PM EST (link)as on sails. Then there’s the big honking generator that I’m sure it has to maintain the freezers, wine chillers, flat screens in the staterooms, and alll the little necessities of comfortable life at sea.
In Vino Veritas
not tount the carbon footprint and dead trees that went into building it -nt
bk (Diary) Saturday, July 24th at 1:31PM EST (link)For those of you who didn't catch the Monty Python reference...
Steve Maley (Diary) Saturday, July 24th at 1:03PM EST (link)…it’s actually pronounced “throat wobbler mangrove”…
The blogger formerly known as ‘Vladimir’.
One of two things are operative here
RedBeard Saturday, July 24th at 1:06PM EST (link)Either John “Jenjiss” Kerry (who, he never fails to remind us, served in Vietnam) is so arrogant and detached as to not understand the hypocrisy here, or he thinks the rest of us are so stupid that he can get away with lying about this deal, The great thing is that he looks awful no matter which it is.
Standard-bearer for grouchy curmudgeonry since, oh, 1975 or so.
Or, one of two things *is* operative here (nt)
RedBeard Saturday, July 24th at 1:08PM EST (link)Standard-bearer for grouchy curmudgeonry since, oh, 1975 or so.
I wish
dennism (Diary) Saturday, July 24th at 1:07PM EST (link)I wish Okilahoma would suspend the sales tax on yachts.
Poor Kerry, tormented in the stateroom,1 of 2,
johnt Saturday, July 24th at 1:08PM EST (link)tossing and turning in his silk sheets, the valet bringing him warm milk and a sedative, so troubled his he by the plight of, could it be otherwise, working families.
Relief is on the way, a VAT for the huddled masses as the Republican “bluff” is called. We wouldn’t want to spoil middle America, would we!
“a man’s admiration for absolute government is proportinate to the contempt he feels for those around him”. Tocqueville
Another hypocrisy
reggie1 Saturday, July 24th at 1:31PM EST (link)is that Lurch will change his behavior to avoid taxes, while supercharging domestic taxes and regulations without recognizing that it chases commerce out of the country. His (party’s) synapses do not connect.
They connect...
anotherindyfilmguy (Diary) Saturday, July 24th at 2:13PM EST (link)It is what the left wants. The rest of them are only slowly waking up to the fact their party has been hijacked decades ago by communists/alinsky radicals etc who want to hose over America.
Santorum? Well, at least he’s not Romney…
http://www.zazzle.com/enemy_of_the_statist_tshirt-235977043035297478
hypocritcal "tards
teapartypatriot Saturday, July 24th at 1:49PM EST (link)D-crats love to tax you to death, then tax your death, and have repeatedly shown that they will raise every tax and impose every fee that they can dream up to get them more money. But, like lunatic-left socialist d-crat TAX CHEATS geithner, rangel, daschle, olbermann, killifer, solis, kirk, sebelius, kerry and millions more, they hate to pay taxes for the bonuses, bailouts, pork and socialist welfare boondoggles they create, and they’ll cheat the government out of every penny they can.
Geithner is touting ending the Bush tax cuts
renny (Diary) Monday, July 26th at 5:40PM EST (link)for the “very wealthy.” Does that include Geithner himself? It surely includes Kerry and the lovely Theresa.
How come big D’s don’t get tired of their party’s tax mania?
Oh, because they don’t pay them, a la Rangel.
Thurston's not too bright
joecollins (Diary) Saturday, July 24th at 1:51PM EST (link)Thurston (and Lovey) aren’t too bright if they thought their half million dollar tax evasion would be kept secret from us small people.
Note to Thurston: not all the press leans left.
he isn't too bright, but,
dog_nut Saturday, July 24th at 3:23PM EST (link)I’m gonna bet that he was not planning to run for reelection next time he’s up, because he knows there’s no way this could be kept a secret. He also doesn’t care if it makes the rest of the limo liberals look bad, either.
Also, who was the lib that was just saying that Repubs should just sell one of their yachts? Was it Grayson?
Oh, he will be running again.
The_Rebel (Diary) Saturday, July 24th at 4:52PM EST (link)It won’t be until 2014, and by then this will all be ancient history. He knows how most voters in MA have such short memories and are so stupid.
I wonder if Blowin' Joe questions his patriotism. nt
Locked and Loaded (Diary) Saturday, July 24th at 2:04PM EST (link)No,no,no it's not about taxes.
mriggio (Diary) Saturday, July 24th at 3:17PM EST (link)It’s all about maintenance.
Obviously, nobody in his home state is qualified to work on the new boat, so he’s parking it where it was designed and purchased, in Rhode Island. Perfectly understandable. It’s the same reason I park my Honda Gold Wing where it was designed, right over there in Tokyo.
mriggio
SMSgt, USAF (Ret)
Precinct Committeeman (R)
Tazewell County, Illinois
Save the
CheerleaderParty, save the World! (Heroes, ed.)Two peas in a pod...
logus (Diary) Saturday, July 24th at 3:49PM EST (link)from the same party no less. When I heard about what Kerry has done, I instantly thought of Russ Carnahan. http://wadingacross.wordpress.com/2010/07/23/rubba-dub-dub-kerry-follows-carnahan/
“The truth will set you free, but first it will make you miserable.”
James A. Garfield
Wading Across
Guess which Boston paper...
swami7774 (Diary) Saturday, July 24th at 4:03PM EST (link)…didn’t see fit to report this story?
You get one guess.
Today, there is a name for the political doctrine that rejoices in scarcity of everything except government. The name is environmentalism.
Oops. Check.
swami7774 (Diary) Saturday, July 24th at 4:05PM EST (link)They put it in their online edition today, but ran only an AP rewrite. Didn’t do any of their own reporting.
Not important, I guess. Nothing to see here, move right along.
Today, there is a name for the political doctrine that rejoices in scarcity of everything except government. The name is environmentalism.
And Don't Forget Rose Kennedy...
markinbaltimore Saturday, July 24th at 5:52PM EST (link)When Rose passed away, the Kennedy family proclaimed that Rose was a resident of Florida despite the fact that she hadn’t left the Kennedy compound in Hyannis, MA in the previous 10 years. Florida’s estate taxes were far lower than those in MA at the time. Ah, its good to be a liberal in MA!
Every time I see John Kerry I get a warm feeling
Tbone (Diary) Saturday, July 24th at 6:23PM EST (link)knowing that every day and often during the night he has to face the reality that George Bush kicked his ass.
Envisioning when all that is Left is the Right.
Next you'll be saying he owns an SUV
partyof1 Saturday, July 24th at 7:08PM EST (link)crazy talk
Those SUVs aren't his.
swami7774 (Diary) Saturday, July 24th at 10:56PM EST (link)They’re his family’s.
Well, that’s what he said.
Today, there is a name for the political doctrine that rejoices in scarcity of everything except government. The name is environmentalism.
Democrats are hyprocrats
carpenter9615 Saturday, July 24th at 10:33PM EST (link)Isn’t this great, these democrats are calling for the rich to pay more taxes, yet they do everything they can to get out of paying taxes taxes , even just not pay them.
It's OK John
WarEagle01 (Diary) Saturday, July 24th at 10:40PM EST (link)The clueless rubes who populate your state will continue to reelect you ad infinitum. Let your hypocrisy continue. And by the way, I think you are beautiful man with hair like a pony.
“A wise, doughy leg with rich tingly experiences will always reach better conclusions than will a more tanned, muscular leg that hasn’t felt those thrills.” –Chris Matthews’ Leg
“The alternative to the awful extremity of abortion is the indispensable joy of introducing this flawed world to someone who might make it better.”–John Hayward (AKA Dr. Zero)
In MA taxes and the law only apply to the "small people"
charliebravoNH (Diary) Monday, July 26th at 7:06AM EST (link)It is no surprise the Lord John Forbes Kerry the 1st docks his yacht in Newport RI to avoid taxes. A couple of years ago a MA state rep who pushed for an increase in the State sales tax was caught on camera buying booze at NH State liquor Store.
The good news is MA is losing another Congressman this year.
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ChBRVNH
Mass state law
livefreenh Monday, July 26th at 9:20AM EST (link)…says that if you are a resident of the Commonwealth and you purchase something in a state with no sales tax, such as here in NH, you shall send the sales tax that you would have paid to the coffers in MA (really!). And the Commonwealth recently had the balls to ask the state of NH to help them enforce it, by us watching the critters whenever they come up here to spend their dollars tax-free. The measure failed when our governor realized that it would cost NH taxpayers to set up a new agency to do so, and that was hard to justify, even for a governor with a D after his name. Probably because he has an MBA after his name, too.
oh yeah,
livefreenh Monday, July 26th at 9:22AM EST (link)I almost forgot. Did Kerry remit any “savings” in taxes that he avoided to the Commonwealth? I think the law applies to him as well, even though he was in Vietnam (I thought I would remind everyone of that). Oh yeah, he is a senator too.
and the missing piece:
livefreenh Monday, July 26th at 9:26AM EST (link)“Is there sales tax due?
There is no sales tax on boats unless the boat was purchased prior to July 29, 1993. If sales tax is due, it must be paid to the RI Division of Taxation, One Capitol Hill, Providence, RI (phone 401-222-6278) prior to registration.”
http://www.dem.ri.gov/programs/bpoladm/manserv/hfb/boating/boatfaq.htm
http://tinyurl.com/2ubbun7
And we have a winner. Follow the money trail.
the revolution can't come fast enough
alpinejager (Diary) Monday, July 26th at 3:09PM EST (link)Sen John ‘I served in Vietnam’ Kerry
3 awards of the purple owwie.
votes for TARP, Obama-care, Stimulus, VAT, let the Bush tax cuts expire…..never met a tax he didn’t like.
This man is the poster child for why the current crop of the ruling elite needs to be handed their heads. If we have a real shooting revolution, this guy gets hard labor, IF he lives.
You couldn’t make this up if you tried-
If ever there was a stuffed shirt that could afford it, he should have had the vessel built here. Imagine the sheer arrogance, you’re one of the prime reasons American business is so expensive that it is avoided, and then you go around it screwing the very sheeple that put you in office.
7 MILLION DOLLAR YACHT
Lets hit him on all counts,
1. the vessel was built for he and his wife- in New Zealand
2. Rhode Island has better maintenance facilities
3. and no sales or excise taxes
4. there may also be a break whether income from charters is taxable in RI
Wouldn’t want any redneck-type americans actually deriving
employment from this would we! Might prove Reagan’s trickle down theory works.
Cape Cod Shipbuilding & the port of New Bedford maintenance businesses, due the crushing regulations applied against fishing, is suffering a real crash, adds plenty to unemployment here.
http://www.enterprisenews.com/features/x522013223/Report-U-S-Sen-Kerry-docks-yacht-in-Rhode-Island-saving-500K
http://www.mass.gov/czm/oceanmanagement/waves_of_change/pdf/technicalreport.pdf
But J. Forbes Heinz-Kerry doesn’t see it.
I’ll bet none of his dhimmi-elite neighbors on the islands operate
any differently either.
AND MASSACHUSETTS HAS SO MANY BRAIN-DEAD THAT HE WILL BE REELECTED!
While the journolists keep the masses brainwashed.
“I vote for the democrat! They look out for us!”
Yeah, and i can see how.