Tax-Free Yachts--Brought to you by the Republican Party

The Republican tax cut cult, as Arianna so aptly calls it in her new book, has achieved its zenith in California. Here, if you must have a yacht or private jet, you can have it tax-free. All you have to do is keep it out of the state for ninety days from the time of purchase and you pay no sales or use tax. But if you need a car you're taxed on it, no matter where you buy it. And last I checked, more working people need cars than yachts. As one of only three states in the union that mandates a two-thirds legislative majority to pass a budget (a key element of the right wing success in choking government), California's Republican Party can and does annually hold the budget hostage in return for subsidies for the rich.

This week, Governor Schwarzenegger will be forced to guess at the size of the budget deficit mountain. His team has suggested that it may become a new peak in the Alps, jutting up somewhere between $10 and $20 billion. I did not go to school in Austria like Arnold, but by my math that's a 100% difference, a pretty big guess even for him. And this year, unlike years past, if the legislature cannot come up with a budget by the end of the summer, our state will be broke.

Even in the face of that, the governor's Republican Party stands firm behind a loophole that costs at least $26 million a year. That's why the Courage Campaign, with funding from the California Nurses Association, created Yacht Party 2. You'll see the whole story in sixty seconds.

It's the essence of the Republican Party story in 2008: cut education, healthcare, housing, everything you can, but secure the lifestyles of those wealthiest among us. John McCain has nine houses, but no plan for Americans to keep or buy even one. While Mr. McCain has not spoken out about the yacht subsidies for the richest Californians, we have to believe he'd welcome his colleagues from California sailing right up the Potomac.

Tax free yachts. Brought to you by the California Yacht (Republican) Party. Wonder what they'll think of next?

Comments

[Bladernr1001]

It is not surprising that public employee unions are behind the push to smear the CA republicans.

I consider the public employee unions the real budget busters with their rediculously high pensions and other benefits that far exceed anything you can get in the private sector. The pols of this state do not represent the public at large...they are toally beholden to the these unions.

The democrats that are most beholden these unions outnumber the repulicans by almost 2 to 1.

And don't forget latest scandle in Orange County, CA where it has been discovered that many government employees ride the toll roads for free because of a law that protects their private information. Also they out of tickets and other infractions as serious as DUI because police are less inclined to finger those they now are government employees.

[Bladernr1001]

Yea, the government needs this tax to pay for the overbloated pensions and benefits all the public employee unions voted themselves.

[kellygrrrl]

how about this negotiation:

the yacht owners can have their tax break ONLY if they provide their yacht for 10 GAY WEDDINGS per year.

(p.s. it was good to meet you today, Rick)

[fred123]

Come on - remember basic tax theory - when you levy a tax, you not only redirect money, you also change behavior. I live in SE Connecticut, near a lot of the boatyards that build power boats, racing yachts, etc. A while ago the Feds has a 10% excise tax on large non-commercial boats. Darn near killed the boatbuilding industry here. The people buying the high end yachts changed their behavior, bought their yachts overseas (Choi Lee yards in Hong Kong was a favorite) and hired a crew to sail the boat across (10% of a 400K sale price makes it worth while). When they tweaked the rules to make it harder to register foreign built boats, the owners registered and berthed their boats in the Bahamas, and our local marinas and repair yards took a hit. The little guy who builds boats took it on the nose, not the rich buyer.

This tax sounds neat, but because the rich change their behavior, the people the tax really hits are the boat builders and the marinas. The Fed tax never raised the money they expected either.

[amenophisX]

Don't tax yachts of the rich? "Are you nuts?" as Ralph Kramden used to reply? Tax the hell out of their yachts and jets. Let the shipyard builders build surf boards! Don't tax the rich . . . Heh, heh, heh.

[bgregs]

And if the gov't had instituted a similar tax on the boats being purchased from overseas, then you wouldn't have had that problem, now would you?

[thepeoplechoose]

As long as it pays to be dishonest with little chance of having to answer for it our politicians will game the system in ways that cater to an elite economic class of citizens. One in which, not coincidentally, they happen to belong.

The only way to change this is for the entire nation to deluge our elected officials with a demand for true change that isolates government from the rampant economic bias that has so overtaken this nation.

Unfortunately, I doubt enough people are suitably civic minded, adequately informed and able to fully understand the degree with which this circumstance is harming the nation. True equality of representation for the majority doesn't exist in this country and isn't something I expect to ever see.

[Levittown]

The 10% luxury tax was a loser for the industry and hurt our economy. The Sales tax is equal pay for unequeal pkay. If you can afford the boat you can afford the tax. Why are the rich so greedy. The big guy is sitting in the can because he cheated on sales tax in New York.. It wasn't even his money. If you live the good life remember the adage , " It is better to live well than live in hell with a greedy and sometimes guilty conscience "

[mamacat]

The tax loopholes for private jets (such as the McCain's) and yachts is unconscionable, and indicative of the larger problem. The party of the rich is holding our government ransom for their personal gain, and getting away with it.

So, what can be done about it? How did we get into the situation that we are in today, where a minority is able to stop the state government from functioning?
It seems to me that we have two alternatives. The first one is to elect a 2/3rds majority of Democrats. The problem with this idea is that if all of the power is concentrated in just one party, they will eventually become as corrupt as the GOP is today. We need some sort of balance of power, and a one party system will not give us that.
The second alternative seems to be to go back to requiring a simple majority to pass a budget. On the face of it, this is completely logical, but I have no doubt that the GOP will not willingly give up their power to hold the legislature up for ransom.

[gonavy]

Just the other day on this site, I read an article written by people from the show Ugly Betty. They are all upset because the show is relocating to NewYork. New York is giving them something like a 35% tax break. They want Arnold to provide competitive benefits to keep the industry in California. Makes sense, but how many tax breaks can a state provide before it goes belly up? Businesses of all types are leaving California because other states are more accomidating. Wake up people. We need to entice business to come to California. They provide tax income, they provide jobs, and a thousand other benefits. These articles are written by power-thirsty democrats who are sitting on their yachts anchored off Catalina.

[totalliberal]

For which they paid taxes on. The law encourages yachts to be built out of state. GET IT?

[Quaoar]

While I'm all for the Rich paying their fair share of taxes, taxing luxury items such as yachts is just a feel-good measure which will do little to close the deficit. The state needs to make a serious effort to either greatly increase revenue or greatly reduce spending and this isn't going to do it.

[bgregs]

You're right, this is little more than a red-herring by itself. However, when you add ALL the things that CA is doing for the rich which they AREN'T doing for the poor, all the while suffering from more money lost than I will EVER see in my life!!!

[liberalghost]

Rethugs sound like the communst "true believers" in the old USSR, whining about western liberals (you know: freedom, a real vote, etc.) ruining the Soviet State. The Soviet hierarchy had their privileges, just like the American wealthy. There was no revolution in 1989. The Soviet state simply stopped. During the 1930s, America almost stopped. The Communist party USA was the fastest growing political party in the US back then. People wonder why there were so many communists in the US government in the '40s and '50s. It was the near breakdown of the nation caused by Hoover's political philosophy of callous indifference to suffering. Luckily FDR was elected. Too much of the MSM is controlled by too few people today for there ever to be another FDR. Kiss your country goodbye.

[laylahb]

Last week thousands of teachers who work(ed) for the LAUSD received their pink slips, as did teachers throughout the state. Arnold, the Guvernator, cut 10% of the state's education budget, and ordered every other government department to cut 10% from their budgets. Next month (or whenever they finally pass the budget) the yacht/ jet "tax holiday" will no doubt be back in the budget.

I remember that last year one group pleaded with Arnold to allow a very successful homeless programme to stay alive. The cost of the programme wouldn't have made a dent. Just months before, the Guvernator had praised the programme, but the answer was no. Apparently the yachts and private jets needed the support, since the people who purchase them are homeless, and need a place to sleep. Tax-free yachts and private jets to house the homeless- what a unique concept.

[gonavy]

The administrators of each school district decide where the cuts are going to be. How many of the administrators lost their jobs? How many took a pay cut? I know the answer...0. This not so secret practice is occuring all over the state. Do you see where the money stays? Not in the classroom.

[bgregs]

That's true, but it's also a little bit questionable. Yes, the administrators choose where to make the cuts, but the fact that the state is forcing them to MAKE the cuts.......

[TrevorAlan]

Here's why!

People in Nebraska keep asking me why I moved from sunny California to the heartland.

Here's why!


Oh, and a house costs 1/4 as much.

[nyboomer]

Why should the GOP not back the guys who have bought for them their offices. The GOP bought them for a pittance.

[gevan]

Never forget: "A rising tide lifts all yachts!"

[eustaciavye]

I liked the original commercial Yacht 1
http://digg.com/politics/Republicans_SOS_Save_the_yacht_owners

Although it does focus more on content and lacks hotties.

Seriously! I can understand goppers concerns about the tax burden on small business owners and families, but yacht owners...???? Really?? I remember when all of the wealthy people in California were going to leave if we passed the 1% tax on the wealthiest to fund mental health services. It passed and no mass exodus from California ensued. Sure some taxes are burdensome, but this one is fair.

[KillTheMessenger]

This is a very old hat. No matter how bad it smells, it just won't go away.