Sen. Kerry Docks Yacht Out Of State

Massachusetts Sen. John Kerry is docking his family's new $7 million yacht in neighboring Rhode Island, allowing him to avoid paying roughly $500,000 in taxes to the cash-strapped Bay State.

If the "Isabel" were kept at the 2008 Democratic presidential nominee's summer vacation home on Nantucket, or in Boston Harbor near his city residence, he would be liable for $437,500 in one-time sales tax. He would also have to pay $70,000 in annual excise taxes.

Rhode Island repealed those taxes in 1993. That has made the state something of a nautical tax haven.

Kerry spokesman David Wade said Friday the boat is being kept at Newport Shipyard not to evade taxes, but "for long-term maintenance, upkeep and charter purposes."

Wade noted the vessel was designed by Rhode Island boat designer Ted Fontaine and purchased in the state. It was built in New Zealand by Friendship Yachts.

A Department of Revenue spokesman said Kerry would be liable for Massachusetts taxes if he berthed the boat in the Bay State within six months of its purchase. If the "Isabel" were brought to Massachusetts after that period, the state would have to decide if it wanted to pursue the taxes.

Massachusetts, like most other states, has been grappling with plunging tax revenues. Last year's budget decifict was $600 million, and officials are bracing for a $1 billion deficit this year.

The 76-foot sloop has two cabins, a pilot house fitted with a wet bar and cold wine storage, according to the Boston Herald, which first reported its Rhode Island berthing. It derives its moniker from the middle name of Kerry's mother and the name his wife, Teresa Heinz, planned to give a daughter.

Instead, she had three sons.

Coast Guard registration records show the vessel is owned by Great Point LLC, a limited liability corporation based in Pittsburgh, Heinz's longtime home. The millionaire heiress to the Heinz ketchup fortune is a philanthropist and environmentalist.

[UconnJim]

Senator Kerry has said (Feb 6, 2009) ?I have heard a lot of talk about we ought to do a tax cut?If you put a tax cut into the hands of either a business or an individual today, there is no guarantee they are going to invest their money?in the United States. They are free to go to invest anywhere they want, if they choose to invest?The fact is none of those people are guaranteed to invest that money in any of the new projects that we are. So government, yes government, has the ability to be able to make a decision that the private sector won?t necessarily make today.?
Oh, so you mean like millions of dollars in New Zealand instead of one of the many East Coast boat builders nearby, Mr. Kerry. You tell us that we must sacrifice and pay our taxes to your ever-expanding programs (i.e. disastrous health care reform) You may not have anything more to say about it but we do! You should not be reelected. You are a hypocrite! You are a thief! My friends of Massachusetts, you must vote this disgrace out of office.

[HarryPi]

Mr. Kerry could always voluntarily pay the state taxes.

[mike5500]

mr Kerry is a geat and honest man. I'm sure he did not even think of money when deciding where to dock his dingy, wait a minute, where he docked his dingy got him the boat in the first place, bahahah.

Seriously folks, Kerry loves taxes just as long as he's receiving not giving.

[RobAla]

And businesses will find other states and other countries to locate based on high taxes. High taxes is a job killer. Even Democrats that love high taxes, like Kerry, know this. So why continue with the idiocy of expanding the federal government and increasing taxes?

We need to seriously reduce the federal government to a manageable size, and reduce taxes on businesses and individuals. It make no sense to continue President Obama's agenda of federal government expansion. It is absolutely irresponsible.

Some say, that we need more federal government jobs. Think about it. The federal government prints money, but it has no money of it's own. The printing of money is supposed to be based on the GDP. The federal government obtains money by taxing private business and individuals. If you diminish the tax base of private business and expand government jobs - it is unsustainable. It is crazy!

[newsterI]

by Mortar_29
Which is why businesses move their business out of the country. Any business that pays more in taxes than they should, and more than they can pay elsewhere...are idiots."

YEah, we tax payers are not in the CHARITY business! The state has a shortfall like all of them because they cant seem to live within their BUDGETS, no matetr how much taxes they get they NEVER get out of the red, they always find ways to squander the money on krap we dont need and "services" we dont need either. The only "services" we get is the shaft service.

[Mortar_29]

True

[newsterI]

Massachusetts, like most other states, has been grappling with plunging tax revenues. "

Yeah well, big deal, Rhode Island has the same problem so what difference does it make, anyone with half a brain would do exactly the same thing- berth the boat in a nother state and save almost a half MILLION bucks in taxes.
That half million bucks wont even put a dent in 10th of 1% of the BILLION dollars the state he lives in needs for the next YEAR!

[pizzanick2]

I would've done the same thing. You'd be an idiot to pay the taxes in Massachusetts if you could avoid it. I think the only thing you can criticize him on is trying to lie about it, but that's what politicians always do anyway.

[wyodutch]

"Anyone may arrange his affairs so that his taxes shall be as low as
possible; he is not bound to choose that pattern which best pays the
treasury. There is not even a patriotic duty to increase one's taxes.
Over and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone
does it, rich and poor alike and all do right, for nobody owes any
public duty to pay more than the law demands."
.
Honorable Learned Hand, United States Court of Appeals

[bobnjersey]

[Rhode Island repealed those taxes in 1993. That has made the state something of a nautical tax haven. ]

ahhh ... rhode island is a 'nautical haven' ... and it's not at all unusual for owners of high end yachts to not berth them in their backyard.

many actually hire captains to sail the yachts to locations where they want to use them ... and fly in ... then fly back out ... and hired captains sail the yacht either back to their normal berth ... or to another location where the boat will be used next.

it's not like he's trailering the thing around w/ a chevy silverado.

[retm-w]

$7 million dollar sloop, paid for by lobby money more then likely. And you wonder why these guys don't want term limits.

[bobnjersey]

[$7 million dollar sloop, paid for by lobby money more then likely. And you wonder why these guys don't want term limits. ]

wow ... you're not too bright are you?

his wife is the heir of the 'heinz' ketchup company ... which is worth hundreds of millions of dollars.

can you read?

[from the story just a few inches away]
The millionaire heiress to the Heinz ketchup fortune is a philanthropist and environmentalist.

how do you people get thru the day? who's helping you?