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John Kerry registers his new yacht in Rhode Island to avoid $500,000 in Massachusetts taxes

July 23, 2010

  John Kerry recently purchased a new yacht for $7 million and is berthing this new vessel in Rhode Island to avoid paying $500,000 in taxes to the state of Massachusetts. I find this story interesting and relevent for a couple of different reasons– one national and one local.

  First the national issue: We have been told constantly that as Americans we have to sacrifice more for the common good. In this economic downturn the president has told us that we must face higher taxes in order to help those less fortunate than ourselves. From healthcare reform to the stimulus package, future American taxpayers are being asked to bear the burden of this regime’s out of control spending.

  At one point during the campaign while in Oregon, Barack Obama was apologizing to the world for what he deems as Americans over extravagant lifestyles, Barack Obama stated that “we can’t drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times.”

  So while ordinary Americans are being asked to drop our standard of living by keeping our houses cooler in the wintertime by turning down our thermostats; and while Barack Obama has declared that we can’t eat as much as we want; and while Barack Obama claims that we the ordinary Americans can’t drive SUVs, John Kerry doesn’t have a problem with not only buying a brand new yacht– even as the president dissed us for driving what many families think of as a necessity, SUVs– John Kerry doesn’t have a problem with spending $7 million on a yacht, which nobody can claim is a necessity, while evading the taxes that he rightfully owes by registering it in a state that is not his home state. These politicians are telling us that we have to live by one set of standards while they live a totally unneccessary and extravagant lifestyle themselves. John Kerry is a perfect example of the double standard and hypocrisy that is prevalent in Washington today.

  Second, the local issue: Last year Massachusetts decided to crack down on residents that were avoiding the Massachusetts sales tax by buying high end goods in tax free New Hampshire. Massachusetts Governor Deval Patrick decided to crack down on the state “use tax.”

  Massachusetts requires its residents to report on their state income tax returns all goods purchased in New Hampshire that were to be used in Massachusetts, but because this law is unenforceable with Massachusetts residents, Massachusetts tried to sue a New Hampshire business in an attempt to make New Hampshire businesses collect Massachusetts sales tax for them when Massachusetts residents bought goods in New Hampshire. This was met with great resistance in New Hampshire. New Hampshire Governor John Lynch signed into law a bill that would exempt New Hampshire businesses from becoming tax collectors for the state on Massachusetts. Score– New Hampshire 1, Massachusetts 0.

  It will be interesting to see if Massachusetts goes after John Kerry for avoiding Massachusetts taxes with the same zeal that they went after ordinary Massachusetts residents. Somehow I don’t think that will be the case. While John Kerry as a United States senator is not involved with the local politics of the state, he has been an advocate for the Obama regime’s tax increases. He has endorsed many of the Massachusetts politicians– including Deval Patrick– who support higher taxes, including the recent raising of the Massachusetts sales tax. By doing so he has also endorsed their tax increases.

  Yet John Kerry looks to avoid paying higher taxes himself and this is a perfect example. When politicians like Barack Obama talk about sacrifice, and lowering the standard of living, they are talking about ordinary, hard working, middle class tax payers; they are not talking about themselves. They are unwilling to meet the expectations that they hold for us. And John Kerry’s tax avoidance is just the latest example of how Washington politicians are not willing to sacrifice for the common good themselves.

  How can we take people like John Kerry seriously any more? How can they expect Americans do do something that they themselves are unwilling to do?

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13 Comments leave one →
  1. July 23, 2010 10:17 pm

    Ya know, I don’t know that I can blast Kerry for that… It’s business all the way… Many companies incorporate in Delaware simply because it’s a lot cheaper, and I am all for cheaper AND avoiding taxes where possible.. I fail to see where this is a national issue, but there sure are a ton of blogs making it one…

    Like

    • July 24, 2010 8:49 am

      I only think its an issue because he is one of the people who seem to want to tell us we have to live one way while he lives the other. If he wants to raise taxes on others he should be willing to pay them himself.

      Like

  2. July 24, 2010 5:22 pm

    Never thought I’d have something positive to say about John Kerry, but… Assuming it’s legal, then from a purely financial perspective, it appears that Kerry made a prudent decision.

    From the standpoints of ethics and ideological consistency, however,… not so much.

    Like

    • July 27, 2010 9:51 pm

      And that is where my problem lies, with the ethics and ideological nonconsistence with it.

      Like

  3. Deb permalink
    July 24, 2010 6:01 pm

    Take people like John Kerry “seriously”? THat’s outrageous!! “not so much” is right. Why is it not OK or necessary to ask a U.S. Senator to do the right thing. A good example would be nice. And what happened to the “Scaramouche”?????

    Like

  4. July 27, 2010 11:04 pm

    Well, now that Kerry is paying the tax, I guess he is now a patriot — according to Biden.

    Like

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