BOSTON (AP) — 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. Its ironic because these are the same kind of taxes from which Kerry is paid to represent the people of Massachusetts.
“Isabel,” the 76-foot yacht owned by Democratic Sen. John Kerry of Massachusetts, is undergoing repairs at the Hinckley shipyard in Portsmouth, R.I., Friday, July 23, 2010. Kerry is docking his family’s new $7 million yacht in neighboring Newport, R.I., allowing him to avoid paying roughly $500,000 in taxes to the cash-strapped Bay State. (AP Photo/Stew Milne)
If the “Isabel” were kept at the 2004 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.
(How is it that any average Massachusetts voter can feel this Multimillionaire could EVER represent their best interests? It just is not possible…)
Rhode Island repealed those taxes in 1993.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.
Heinz and Kerry live an affluent life. They own a six-floor, $7 million townhome in Boston’s Beacon Hill neighborhood, a $9 million ocean-front home on Nantucket, a $5 million ski retreat in Idaho, a $4 million estate in Fox Chapel, Pennsylvania near the Heinz family’s home base of Pittsburgh, and a $5 million home in Washington, D.C.’s Georgetown neighborhood.
He is entitled to lavish in and enjoy his wealth but one question come to mind.
How does this guy represent the average Massachusetts resident? He is too far removed…He does not have a clue of today’s average man’s struggles. He is an elite.
The people of Massachusetts need to elect political representatives who live in the same income range as they do. Otherwise the people of MA will get representation that mostly reflects the wants and needs of the disconnected, far removed elite and which does not serve them well.