John Kerry saves $500,000 by docking ultra-luxury yacht in other state
Times are tough for everyone. Including gazillionaire John Kerry.
The Massachusetts senator is under fire for docking his brand new $7-million yacht in Rhode Island.
It's not illegal to moor your boat there or anything. It's just that Rhode Island doesn’t have a boat sales and use tax anymore.
If the luxurious yacht, which apparently boasts an "Edwardian-style, glossy varnished teak interior, two VIP main cabins and a pilothouse fitted with a wet bar and cold wine storage" were berthed in his home state (commonly known as "Taxachusetts") then he’d be on the hook for almost $500,000.
But before you get incensed, this is not what it appears -- at all. He’s docking "Isabel" (the name of the yacht) in Rhode Island only because it makes sense logically. It was bought there so of course it would stay there, argued Kerry spokesman David Wade.
“The boat was designed by and purchased from a company in Rhode Island, and it’s based in Newport at the Newport Shipyard for long-term maintenance, upkeep and charter purposes, not tax reasons,” Wade said.
"Let’s not get silly here," Kerry told a Boston TV station Friday. "We pay enormous taxes to the state of Massachusetts, and there is nothing illegal here."
Whatever the case, it looks like Kerry might have to pay the taxes after all. The Boston Herald reports that the yacht was spotted in Nantucket over the Fourth of July holiday. The law says that "if a boat owner berths the vessel in Massachusetts waters within six months of purchasing the boat, there’s a 'presumption of use,' and the owner must fork over the 6.25 percent sales tax to the commonwealth.”
Kerry’s spokesman says if they owe any taxes, they’ll cough it up (even if they can’t afford it).
"Sen. Kerry and his family always comply with tax law, and if any taxes are owed, of course, they will be paid," Wade said.
In the meantime, a candidate for state treasurer is calling for an investigation.
"No person is above the law," Karyn Polito said. "For people to have confidence that the law is being applied equally, they need to be reassured that Sen. Kerry is not receiving favorable treatment."
-- Jimmy Orr
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Photo: Kerry's new yacht. Credit: Associated Press
This is an insult to taxpayers. Mr. Kerry has lots of money and can afford to place the yacht in his own state to help fund the struggling schools and other people.
If Mr. Kerry and the Democrats wants to raise taxes, than you should to do the right thing and pay the higher taxes to fund necessary state services.
Posted by: Chris Levens | July 24, 2010 at 10:04 AM
Hoity Doity needs to pay up. Pay your share, Kerry. Don't be a hypocrite. Is it time to investigate all these hypocrites if they are dodging taxes.
Posted by: myohmy | July 24, 2010 at 11:12 AM
Having graduated to senior senator,through no meritous feat,the famous
flipfloper now considers he is above the law.Some senators travel in $7 million
yachts, others who do the people's work drive a pick-up.
Posted by: Captain Klutz | July 24, 2010 at 01:26 PM
kerry added that a secretive IRS agent in a funny hat on a secret mission behind enemy lines in rhode island told him it was okay on christmas eve.
Posted by: reliapundit | July 24, 2010 at 01:53 PM
YAY its nice when politicians figure out a way to beat their own system. Thumbs up John Kerry
Posted by: Bright Side | July 24, 2010 at 02:00 PM
I guess Kerry is smarter than he sounds (although I suspect it was really his wife's accountant who made this recommendation).
Posted by: Nick in Virginia | July 24, 2010 at 02:36 PM
It's perfectly legal. Naturally, if you're going to take the long road instead of paying a toll, you'll probably want to take the longer way. Tax evasion is illegal, tax avoidance is human nature. So when you say, "Pay your taxes," he will... when an amount is owed.
Posted by: Scott | July 24, 2010 at 03:22 PM
Senator Kerry---You should be proud of yourself!!!!!
Posted by: Ralph Shannon | July 24, 2010 at 03:56 PM
why the outrage? what he did is legal, acceptable and logical. States and their individual tax differences let people compete for the best deal. In this case, RI wins his business in docking and maintaining his boat there. Mass. fail.
Posted by: ribby | July 24, 2010 at 08:02 PM
Same old story as with Geither, Daschle, Charlie Rangel, etc., etc., etc. These laws the ruling class imposes are for the little people to obey. If the rest of us had pulled a stunt like Kerry, we'd be down on one knee in front of some judge trying to stay out of jail.
Posted by: Bill | July 24, 2010 at 08:32 PM
Liberals lay taxes but don't pay 'em!
But they sure don't mind spending OPM now do they...
Just ask the Kennedys, Kerry, Wrangel & the ol' "Tax-Cheat" himself, Geithner...
only in America is a tax-cheat appointed head of the IRS!
Remember in November!
We can either live like Americans or we can live like Cubans!
"Liberalism is just Communism sold by the drink." P.J.O'Rourke
Posted by: MR. RIGHT | July 24, 2010 at 09:50 PM
Nice to see he put some of that money he saved under the Bush tax cuts to good use.
Posted by: Beltway Greg | July 25, 2010 at 11:56 AM
John''you bet I'm entitled to preferential treatment'' F'n Kerry just put
himself in a swift-boat quagmire Again.
Posted by: Suffering cats | July 25, 2010 at 12:07 PM
So what? When I had a modest vacation cabin in another state, I registered a little skiff there since that is where the boat actually was kept.
Why is this any different? If Kerry is willing to put up with the inconvenience of registering and docking his boat in another state and is complying with the law, he's not doing anything wrong.
If anything, it's smart money management of the sort that Republicans take pride in. For a conservative to suggest that this utterly mundane, legal, logical practice is somehow wrong is the height of hypocrisy.
Posted by: Ed | July 25, 2010 at 03:14 PM
The rich can afford to pay tax specialists that figure out the loopholes that let them off the proverbial tax hook. This is reason why a flat tax would not only be the fairest tax it would be the one with the least loopholes.
Posted by: AFV | July 26, 2010 at 12:32 PM
The SS John Kerry continues to take on water, following another broadside from the Boston Herald. www.eightfits.blogspot.com
Posted by: Aquinnah | July 27, 2010 at 05:05 AM
does anyone think the rich stay rich by giving it away?>??
why would u not look for a tax friendly place to dock your several million dollar boat....
Posted by: Terry | July 27, 2010 at 08:55 AM