Kerry saves on taxes docking yacht in Rhode Island
Massachusetts Republican Party leaders criticize the Democratic senator for 'his hypocrisy on taxes.'
The Associated Press
BOSTON - 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 his cash-strapped home state.
Isabel, the 76-foot yacht owned by Sen. John Kerry of Massachusetts, is being docked in Newport, R.I.
The Associated Press
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Rhode Island repealed those taxes in 1993.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 deficit was $600 million, and officials are bracing for a $1 billion deficit this year.
Rep. Karyn Polito, a Shrewsbury Republican running for state treasurer, said the Revenue Department should investigate whether Kerry was committing tax evasion.
The Massachusetts Republican Party also criticized Kerry.
"While we can fault the senator for his hypocrisy on taxes or having his boat built halfway around the world instead of here in the USA, John Kerry proves an important point that taxes in Massachusetts are too high. If they are too high for someone as rich as Senator Kerry, they are absolutely too high for working-class taxpayers who are being squeezed at every turn," said a statement issued by party Chairwoman Jennifer Nassour.
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, hoped 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.
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40 COMMENTS
v255504 said...
Typical liberal elite... "Do as I say, not do as I do." ANd youwont hear a word from the lefties on this site because Kerry is one of the beautiful people.
July 24, 2010 at 12:17 AM Report abuse
backwrdstate said...
"v255504 said... Typical liberal elite... " Well, another partisan idiot heard from. Here's a clue for you, Mr. v255504. In the United States of America, it isn't left or right that defines who dodges taxes, it is rich and everyone else. The rich dodge, we pay. That is the basis of this country and it is the "freedom" that our army fights for. So stuff another fried potato into your ignorant gob and replay your Rush Limpbaugh tapes.
July 24, 2010 at 12:42 AM Report abuse
Biddy said...
Liberals will criticize Kerry as much if not more than conservatives. But let's face it, Kerry is no worse than many Maine residents who spend 5 months in Florida, not 6, and claim residence there to evade Maine income tax. And many have admitted it here willingly and are diehard Conservatives.
July 24, 2010 at 6:11 AM Report abuse
jake007 said...
well well,it this comments thing been fixed Biddy? I hope so,what a mess. And for the Kerry blurb,I remember when I lived in So. Florida,it seemed like hald the boats had a Delaware registration back then due to some law for corporations. So what can you do..nothing.We have bigger fish to fry then to worry where Kerry yacht is located
July 24, 2010 at 6:54 AM Report abuse
UofA said...
This one buys his booze and large appliances in NH. I have 2 campers registered in Tenn. at $14.00 per year each and no excise tax. I will continue doing so until I sell my home and move down to the US! Muleface Kerry is a turncoat that married a Republican's widow for the money! Mass. deserves him!
July 24, 2010 at 6:55 AM Report abuse
flattopsailo said...
Biddy is so transparent! Who are you? Chellie or Libby or Hannah?
July 24, 2010 at 7:00 AM Report abuse
badjuju said...
No, Biddeford wannabee mayor. Fail
July 24, 2010 at 7:04 AM Report abuse
cablegirl said...
Biddy, Kerry is supposed to be a leader! Please stop making excuses for this Liberal Elitist snob.
July 24, 2010 at 7:47 AM Report abuse
Hobbes said...
Kerry... another clown in the circus of liberals. V255504 said it right "do as I say, not as I do"
July 24, 2010 at 7:51 AM Report abuse
nikonwilly said...
And who would pay that much in taxes when down the road a piece they're not required too ? I wouldn't and you wouldn't regardless of any political affiliation ! Simple logic! Blame Ma. for running a sinking ship!!
July 24, 2010 at 7:56 AM Report abuse
Mediabias said...
Easy backwrdstate, you libs sure are an angry group...
July 24, 2010 at 8:00 AM Report abuse
Felix said...
Ah yes, the lefty beautiful people aren't accountable like us working stiffs! Hey former Maine Gov Curtis, what do you have to say about this from your sometimes home in Florida?
July 24, 2010 at 8:08 AM Report abuse
oldstudent said...
The point isn't the tax avoidance folks, the point is the hypocrisy of the man who wants everyone else to pay taxes but not do so himself. A "man" who demands you pay all the taxes he helps to impose in order to be patriotic and moral but he does have a different set of rules for himself and his friends. Typical limousine liberal.
July 24, 2010 at 8:35 AM Report abuse
NickName123 said...
John Kerry reminds me of Mr. Howell from Gilligan's Island only less likeable....."dearie - martini time"....if he were a plain ole capitalist I wouldn't care how he avoids taxes - we all have that right. But as a smug, arrogant politician - I hope they shove this issue well up his @@@. Looking forward to 2 republican senators from the great state of MA in the near future.
July 24, 2010 at 8:55 AM Report abuse
ZackM said...
It's not just Kerry's hypocrisy, it's also the hypocrisy of the Democratic leaders in Mass. Last year Massachusetts was trying to get sales records from retailers in NH to try to collect taxes on people from MASS who bought goods over there such as tires, but notice they are not going to pursue Kerry even though they know who, what, when, and where.
July 24, 2010 at 9:05 AM Report abuse
NH said...
Jennifer Nassour makes a complete donkey of herself with that statement, "...if (taxes) are too high for someone as rich as Kerry..." Typical stinking rich conservative statement. The taxes are NOT too high for someone like Kerry, who can afford to have a yacht designed, built in NZ, and delivered back to the U.S. just for him, on top of what, the 7 ritzy homes he already owns. Half a million dollars isn't even a blip on the radar for Kerry and his rich wife. But the Republican chair is quick to use the situation as an example for why the rich should be even richer, for no reason other than greed. Not need.
July 24, 2010 at 9:25 AM Report abuse
HesterPrynne said...
This liberal elite (intellectually elite, financially broke) questions why conservatives ~ who are all about making money by any means ~ find it wrong for Senator Kerry to do something that keeps more money in his pocket. How inconsistent of you! Senator Kerry did NOT break a law. He just followed the law of the rich. They're different, doncha know? It may have been a legal option, but it was not a classy one. But then, nothing beats the love of money. Maybe he's more conservative than liberal deep down inside.
July 24, 2010 at 9:37 AM Report abuse
FlyingPoint said...
The Kennedy's were the same. They probated Rose's will in Florida to save millions in taxes, even though she had not been there in years. Others would go to jail, but tax cheat Ted is a hero!
July 24, 2010 at 9:56 AM Report abuse
Biddy said...
Hey I'm not defending Kerry. I'm just pointing out that as a public we can expect amoral leaders when we practice those ideas ourselves. After all the leaders come from within us, the general population. They aren't above us or some kind of higher being. If you go to New Hampshire to avoid sales tax or flip off the residency rules to declare residency in Florida or Texas to avoid taxes you're no better then Kerry and have no business condemning him.
July 24, 2010 at 10:03 AM Report abuse
PaulPortland said...
Kerry's a POS. The American people saw that and rejected him. When's Kerry up for reelection? They should run Scott Brown's wife. She'd win too.
July 24, 2010 at 10:15 AM Report abuse
Ayuh23 said...
Republican Yacht Tax Evaders (greater than) Democratic Yacht Tax Evaders. Hester hit the nail on the head. Those with money learn quickly how to keep it.
July 24, 2010 at 10:41 AM Report abuse
StovePrairie said...
This is an example of good financial management, personal and business. Work with changing the states' tax requirements rather than ridiculing the legal usage of tax reducing items.
July 24, 2010 at 10:57 AM Report abuse
william said...
I'm shocked! Kerry is a member of the leftist elite who has constantly voted for or advocated for higher taxes, yet works overtime to dodge them. Senator, what about the children?? What about paying your fair share??
July 24, 2010 at 11:17 AM Report abuse
PaulPortland said...
What I find more interesting is that Pelosi left a tax cheat in charge of the tax writing committee while he was under investigation for tax evasion. This doesn't square with her pledge of running the most ethical Congress ever.
July 24, 2010 at 11:26 AM Report abuse
Caveman said...
Kerry has caved and will have to pay taxes. The law states that the vessel may not be used in Mass. for the first six months of ownership and he was spotted in Nantucket this month. Game over.
July 24, 2010 at 11:47 AM Report abuse
CEMan said...
Last time I checked, Kerry did not represent Maine. So, I have to ask two questions. First, why is this even news in Maine? Second, who the fork really cares? Just the PPH stirring the pot again. Got relevance?
July 24, 2010 at 12:14 PM Report abuse
trisailer said...
I have to second backwardstate on this one. "the rich dodge and we pay and that is the basis of the freedom in this country" and I loved the rest of his comment. I don't have a problem with people avoiding unnecessary taxes but a 2 trillion dollar tax cut for those same people is obscene. Kerry and Operah and the rest of them should be paying more not less. They should be paying more.
July 24, 2010 at 12:38 PM Report abuse
Caveman said...
You are right CEman...a non story; but it was all over the Boston Herald and Globe yesterday and garnered about 1500 reader comments. The reason it is gossip-worthy is it has been discovered that it is registered by an LLC in Penn. and the legal residence of Teresa's Philanthropies and Foundations. Also a spokesperson mentioned it was available to charter and thus in R.I. waters. I don't believe that The Jones act allows foreign built boats to Charter. In my opinion he is ignorant of the (local boat tax) law as he sits in Washington writing law.
July 24, 2010 at 12:42 PM Report abuse
librlrepblcn said...
HesterPrynne said that Kerry did not break a law. I'm not going to say he did or didn't, but doesn't it seem awfully suspicious that he has to lie about why he is keeping his boat in RI? He says he has it there for long-term maintenance...Sounds like he got ripped off if his brand new boat needs long term maintenance already. How long is this maintenance going to take? Just over 6 months maybe? Hmmm bold face liar just like when he was running for president.
July 24, 2010 at 2:49 PM Report abuse
David said...
The rich don't dodge. They support all of us. You would have any government programs without them. It's about time the wealthy and productive went on strike. Just watch what would happen to ObamaCare. Atlas Shrugged anyone? Then, these class-baiting fools would wise up and be grateful for the gifts given to them by those with greater drive, intelligence, and ambition.
July 24, 2010 at 4:18 PM Report abuse
Maineboatman said...
Hello Folks, The Rhode Island lawmakers plan to get & keep jobs in Rhode Island worked as it was intended. Stick to the real story; many cities, counties, states, give tax breaks to attract investments (i.e. boat keeping) for supplying jobs for their residents. Debate the practice of tax-breaks, which by definition are only for the wealthy to maintain their wealth. All others, mostly the middle-class, pony up the dough to keep our boats, or to develop 300-unit planned developments on speculation. Oops, no middle-class folks did the latter. My bad. Blame the lawmakers, CPAs, lawyers, politicians, who come up with these loopholes to benefit their employers. Mostly BLAME US for allowing these laws to be passed anywhere. The US House & Senate has some 500+ elected officials. If the voters WANTED we could keep 500 people in line & HONEST. Oops, my TV show is starting so my brain is now offline. Maineboatman, Peaks Island
July 24, 2010 at 4:43 PM Report abuse
Cadred said...
David, sure, we should be grateful. This is no different from many other forms of tax avoidance, including the "snowbird" ploy, local residents who register their businesses and vehicles in New Hampshire (I know many, and they're all Conservatives) and headquartering your corporation in the Bahamas to avoid paying taxes to the U.S. Did you know Exxon paid NO taxes in the U.S. last year, although they couldn't pull it off in other countries.
July 24, 2010 at 5:52 PM Report abuse
russellofnj said...
Know political preference on my part....Can you blame him.... Most taxes are unjust in the first place tax to buy a car some places on a sandwich yes we do need a TEA Party Rhode Island I like you.. myself I have no Boats no money walaaaaaaa
July 24, 2010 at 5:59 PM Report abuse
v255504 said...
The people defending kerry's tax evasion would be the first to pop a blood vessel in thier (tiny)foreheads if it was a Republican Senator who pulled the same trick. The major problem with the left isnt that they are lefties but that they are hypocrites. John Kerry has made his career on raising taxes on everyone but himself, Ted kennedy was the same. Dock yachts in a bordering state, probate wills in florida when the person hasnt been in the state in years, and dont get me started on how badly kerry and ted were pushing for "alternative power sources... just not off Nantucket because it would block there views....
July 24, 2010 at 7:42 PM Report abuse
LarrySellers said...
LMAO...I'm sure this is just the tip of the iceburg with this moonbat!
July 24, 2010 at 9:16 PM Report abuse
David said...
I love the people who repeat the mantra about corporations not paying taxes. It's hilarious. What they want, apparently, is double taxation, since each time a corporation distributes earnings to employees and shareholders, that money gets taxed as individual income, and often at high rates. Silly partisans.
July 24, 2010 at 9:31 PM Report abuse
CEMan said...
v255504. I will call BS on you. This is a NonStory in Maine. People drive to NH because they THINK they are saving money on booze. People register cars in FL because they THINK they are saving money. Where is Bush's boat registered? I do not give a rats a*&. We ALL dodge taxes/fees. This is just another ploy to get sheep like you all wound up over nothing. Got Relevance v255504?
July 24, 2010 at 9:37 PM Report abuse
Cadred said...
David, get your facts straight.
July 24, 2010 at 9:46 PM Report abuse
otisslee said...
I'm surprised at the posters who are excusing Kerry because "everybody does it, or Bush does it, or corporations do it." Here's the difference. My (or anyone's) unethical behavior does not excuse Kerry's unethical behavior. Bush is no longer an elected official, and even if he was, his unethical behavior would not excuse Kerry's unethical behavior. Corporations are in business to maximize profits, and even if they were not, their unethical behavior would not justify Kerry's unethical behavior. Kerry is a senior US Senator who consistently votes to collect more tax money from all of us - citizens and businesses alike. His positions affect us all - even Mainers. Yet, when given an opportunity to pay 'his fair share' Kerry dodged it. Even sent the job to build his boat offshore to New Zealand. That is why this story is an important story.
July 25, 2010 at 7:32 AM Report abuse
Mainedog said...
Biddy, the people who spend 7 out of 12 months in Florida are no longer Mainers and they vote in Florida so there is no law being broken you dope! Kerry is a reg voter in MA, thats what makes the difference! Why isn't any talking about he purchased a boat built in another country! This loser dosen't think enough of America to have his boat built here! He's nothing but rich white trash!
July 25, 2010 at 10:07 AM Report abuse