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http://www.boston.com/news/local/ma..._docks_new_boat_in_rhode_island_saving_taxes/

BOSTON—Massachusetts Sen. John Kerry is docking his family's new $7 million yacht in neighboring Rhode Island, saving roughly $500,000 in Bay State taxes.

The Boston Herald reported Friday the 76-foot, New Zealand-built sloop has two cabins, a pilot house fitted with a wet bar and cold wine storage. It is owned by a limited liability corporation in Pittsburgh, the longtime home of Kerry's wife, philanthropist Teresa Heinz Kerry.

If the "Isabel" were docked at the couple's summer vacation home on Nantucket, they would be liable for $437,500 in one-time sales tax. They'd also have to pay $70,000 in annual excise taxes.

Instead, Rhode Island has repealed those taxes.

A Kerry spokesman says the boat is being kept at Newport Shipyard not for tax reasons, but "for longterm maintenance, upkeep and charter purposes."
 

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Well, presumably he thinks the taxes are alright to be levied, just not on him.
 

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So why is this in the Black Hole? It's got to be one of the lamest posts ever.:crazy:
Posts #1-5 should explain it noob. This wouldn't even make the top ten lamest list.

The OP and this type of response are why...
No, he's a liberal therefore he should be be ridiculed. If he was a conservative, he would be praised for how skillfully he avoided paying taxes.
Tax avoidance is the american way, it follows no politicial, religious or race barriers. It's pretty clear RI has chosen to repeal the taxes to make them boater friendly, probably draws other investment in terms of support business, increased visitor numbers, tourism, etc.
 

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Originally Posted by Arj
Well, presumably he thinks the taxes are alright to be levied, just not on him.
Where does this come from? Who says he supports these taxes? He's a U.S. senator, the taxes in question are state level.

All politicians pay accountants like millions of other citizens to minimize tax liability. Should politicians instruct their preparers to take no deductions, credits or other strategies so they pay the maximum tax?

The fact that he and others have this amount of wealth to throw around could make you question how in touch and sensitive they are with the common man. Plenty of others playing the game to make people believe they understand their plight, right up to the POTUS.
 

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Who says he supports these taxes?
I did say "presumably," didn't I? I don't know for a fact that he does or doesn't support them. As he is the Democratic Senator from Taxachussetts, it fits the stereotype the he would support them.

Do you have any information on whether he supports these taxes or not? His choosing to dock his boat in RI suggests he does not support them, but his spokesman says that choice was not driven by a concern about taxes. I don't believe that, but if true then maybe he does support those taxes and circumstances for him are such that he won't need to pay them. :angel:
 

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I did say "presumably," didn't I? I don't know for a fact that he does or doesn't support them. As he is the Democratic Senator from Taxachussetts, it fits the stereotype the he would support them.

Do you have any information on whether he supports these taxes or not? His choosing to dock his boat in RI suggests he does not support them, but his spokesman says that choice was not driven by a concern about taxes. I don't believe that, but if true then maybe he does support those taxes and circumstances for him are such that he won't need to pay them. :angel:
Including the work presumably changes nothing about the implication of your comment, unless maybe you stated "presumably he thinks the taxes are alright to be levied, just presumably not on him". Not only did he choose not to dock it in MA, he didn't even title it there, meaning he either claimed another residence in RI or claimed a permanent location of the yacht there. Like any tax, politicians support them to the extent they feel the impact on them personally is far less than the impact the tax will have on furthering their agenda and ability to maintain power.
 

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So who really thinks the majority of Kerry's constituents agree with this decision to avoid state taxes?
 

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The Boston Herald reported Friday the 76-foot, New Zealand-built sloop has two cabins, a pilot house fitted with a wet bar and cold wine storage. It is owned by a limited liability corporation in Pittsburgh, the longtime home of Kerry's wife, philanthropist Teresa Heinz Kerry.

If the "Isabel" were docked at the couple's summer vacation home on Nantucket, they would be liable for $437,500 in one-time sales tax. They'd also have to pay $70,000 in annual excise taxes.
If the boat is owned by an LLC in PA, why would anyone owe any sales tax to MA?
 

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If the boat is owned by an LLC in PA, why would anyone owe any sales tax to MA?
At least in Ohio, you pay tax based on it being titled in Ohio, not the address of the owner.
 

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Using 4 letter word insults again? :sleep:



So people in other countries don't? You mean before there was an America people didn't avoid taxes. How interesting. Please enlighten us.
Noob is a four letter insult now? I believe you've exceeded forum limits for the pretentious use of the sleeping icon.

Your comments are diversion. We're talking about U.S. taxes, not comparison to other tax systems in the world. Anyway, no other country in the history of the planet has more volume and complexity of tax code, federal and state, than the U.S. The system creates the level of avoidance and the creation of all the nooks and crannies in the code makes for a system that can be far from equitable. Merely creating income and holding wealth is only the starting point for tax liability. Check the current federal estate tax guidelines for a clue.

What is your opinion of an individual using an asset holding entiry from one state, to purchase and title a vehicle in a second state, while he himself is a resident (U.S. senator) of a third state? Do you feel it's equitable for the people of his residence state that supplies most of the infrastructure around him to not receive the benefit of his purchase?
 
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At least in Ohio, you pay tax based on it being titled in Ohio, not the address of the owner.
Not familiar with boat docking, but I agree that if you title a car in your state, you pay the sales tax. That's one of the more pissy things about WV, if you move here and title your 5 year old car here, you have to pay sales tax as if it was new, and it's a high tax at that. And I think it's unfair to have to pay sales tax twice, once when you bought it and again when you re-title it.

However, this bought is owned by a corporate entity based in PA. I can see paying dock fees etc, even a share of property taxes if one of the LLC owners lives in the state, but paying registration fees? The "vehicle" should be registered in PA. Plenty of businesses that have multi-state locations have their vehicles registered in their "home" state, wherever the tax situation is best.

Not arguing, but I agree that Kerry is probably trying to get the best deal on his tax situation, just like any American. And since they're state taxes, not anything he has influence over.
 

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Including the work presumably changes nothing about the implication of your comment, unless maybe you stated "presumably he thinks the taxes are alright to be levied, just presumably not on him".
My original statement could be broken down like this:

"Presumably (he thinks the taxes are alright to be levied, just not on him)." Grammatically speaking, I probably should have had a comma after the word "presumably." That, presumably, would have cleared up any confusion on my meaning. :p

As to the taxes themselves, I agree that levying a sales tax on a boat (car, etc.) when titled in a given state is excessive, particularly if a sales tax has already been paid on that item. I think it should be levied at the time of sale and in the locality of the sale, apart from where it is titled. You can pay registration fees in the state it is titled.

Now that would have the impact that people might drive to a neighboring state to buy a car, boat, etc. in order to get a better deal on the sales tax and that action might hurt the buyer's local tax receipts. In fact, it is no stretch to imagine Congress deciding to weigh in on this situation as a Federal matter by arguing that these decisions impact interstate commerce. That is a (at the moment) theoretical argument that a U.S. Senator might indeed have influence on this kind of thing, in time. I don't think it applies to the present situation though.

Also, I still find it tiresome that a spokesman for a politician has to come out and deny what is most likely the actual truth of the matter. Kerry is trying to get a tax break, like most Americans. Is he afraid this would piss off state regulators in Mass.? Since he has no influence here, why does that matter?
 

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Your comments are diversion. We're talking about U.S. taxes, not comparison to other tax systems in the world. Anyway, no other country in the history of the planet has more volume and complexity of tax code, federal and state, than the U.S. The system creates the level of avoidance and the creation of all the nooks and crannies in the code makes for a system that can be far from equitable. Merely creating income and holding wealth is only the starting point for tax liability. Check the current federal estate tax guidelines for a clue.
Who cares about the code. If you look at total taxes, ours are actually very low compared to the rest of the world.

What is your opinion of an individual using an asset holding entiry from one state, to purchase and title a vehicle in a second state, while he himself is a resident (U.S. senator) of a third state? Do you feel it's equitable for the people of his residence state that supplies most of the infrastructure around him to not receive the benefit of his purchase?
If it isn't against the law then good for him/her. Obviously your state's (Ohio in this case) government is incompetent at passing tax laws. Do you report all of your out of state internet purchases on your Ohio tax return?
 
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