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Brooks Wilson's Economics Blog: Kerry Avoids Yacht Tax

Friday, July 23, 2010

Kerry Avoids Yacht Tax

I don't blame anyone for avoiding taxation legally and this is just what Senator John Kerry has done by docking his new and really cool yacht in Rhode Island rather than in his home state of Massachusetts and thereby saving $437,500 in sales tax and an annual excise tax of about $70,000.  Apparently, he is not the only person to note that Rhode Island repealed its Boat Sales and Use Tax in 1993 and has since become a haven for tax avoiding yacht owners.  I just wish that he and other tax avoiding legislators would put two and two together to realize that high taxes lower incentives to work and to produce.

HT Drudge Report) Laura Raposa provides the details of the purchase in "Sen. John Kerry skips town on sails tax."  Kerry's yacht certainly deserves the title of luxury. 
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.
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