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Norman Bernstein
06-19-2015, 08:46 AM
Apparently, the Florida legislature is feeling sympathy for yacht owners who need to spend over $1M just in repairs to their vessels... so, they've passed a tax cut for them!

I know... unbelievable....


The Florida legislature on Monday passed a tax cut package that included a break for yacht owners who spend more than $1 million on repairs.

The Associated Press noted (http://jacksonville.com/breaking-news/2015-06-15/story/florida-legislators-near-deadline-pass-budget-avoid-shut-down#.VYAJ7QmHihs.twitter) that the provision capping taxes on boat repairs at $60,000 was tucked away in a package of more than $400 million in tax cuts.

During a floor debate on Monday, Democratic Sen. Geraldine Thompson of Orlando argued that the cuts would largely benefit the wealthy.

“There are many people in my district who own boats, but none of them own boats where they would have repairs over a million dollars,” she pointed out. “In fact, the boat itself would not be worth a million dollars.”

“And so a part of this tax package limits repairs on boats — really yachts — to $60,000, but it you are a small person and you have a small boat, you’re going to have to pay these taxes,” Thompson explained. “But if you have a yacht and the repairs on your yacht are over a million dollars then it’s capped at $60,000.”

The Orlando Democrat encouraged her fellow lawmakers to consider that “the lower income person pays a higher proportion of their earnings already in taxes.”

“This tax cut, as I look at it, does nothing to help that,” she said. “It is something that is for the wealthy and the very wealthy and does nothing for the little guy.”

Republican Sen. Jack Latvala of Clearwater, who sponsored the amendment, defended the proposed tax cut, saying that it was intended to create jobs.

“Yeah, these are big yachts,” he admitted. “But these are also yachts that go all over the country, all over the world. And they can get the repairs done in South Carolina or Georgia or North Carolina just by paying for the fuel to get up there.”

According to Latvala, the bill was “not about saving millionaires money, it’s about getting jobs for people who aren’t millionaires.”

Keith Wilson
06-19-2015, 08:50 AM
Republicans whine and Republicans b*tch
The rich are too poor, and the poor are too rich.

John Smith
06-19-2015, 09:21 AM
Republicans whine and Republicans b*tch
The rich are too poor, and the poor are too rich.

I like that.

Norman Bernstein
06-19-2015, 09:35 AM
Excellent example of how corrupt and lopsided the present tax system is, and how the rich use it to their advantage.

And this is another example of creating income inequality through a corrupt system.

If so, then why do you imply support for an even more corrupt and unfair system, like what Rand Paul is advocating?

Keith Wilson
06-19-2015, 09:37 AM
Excellent example of how corrupt and lopsided the present tax system is, and how the rich use it to their advantage. Indeed. So I presume you oppose the law that just passed the Florida Legislature?

S.V. Airlie
06-19-2015, 09:38 AM
Too bad it doesn't help Rubio!:)

Paul Pless
06-19-2015, 09:46 AM
To be fair, the boat building, repair, and sales industry has been shown to be affected to a great degree by taxes*. So there probably will be a increase in jobs and state revenue from such a tax cut.

* some here will recall how the luxury tax killed high end yacht building in the U.S.

Norman Bernstein
06-19-2015, 09:55 AM
You sure haven't proved that Rand Paul's suggested flat tax is corrupt and or that I am advocating it......

You posted it. Are you advocating it? If not, then why did you post it? Surely it wasn't to criticize it!

Norman Bernstein
06-19-2015, 10:03 AM
To be fair, the boat building, repair, and sales industry has been shown to be affected to a great degree by taxes*. So there probably will be a increase in jobs and state revenue from such a tax cut.

* some here will recall how the luxury tax killed high end yacht building in the U.S.

It's just another zero sum game, Paul... State A drops taxes on a particular industry, in order to capture or attract it from other states... State B loses that industry, so it offers even MORE financial incentives to the industry to relocate....

....and around and around it goes. In the meanwhile, legitimate tax revenues in ALL of the states playing the game diminish, to the point where the incentives cost more than the revenue lost, or regained.

Which states have the advantage? States with high unemployment... but also, states which scrimp on citizen services; poor schools, crumbling infrastructure, lack of adequate support for the poor, and so on. It's no 'miracle', as often claimed; to pay for the incentive, SOMETHING has to give.

(Fair disclosure: I have been the beneficiary of the game. Three times, I have bought boats in Massachusetts that were 'delivered' to me in Rhode Island, which has no sales tax on boats... thereby saving many thousands. Rhode Island forgoes the sales tax on boats because the boatbuilding and boat sales industries are big, in Rhode Island.... but the shortfalls in education and other services in many Rhode Island communities are the sacrifices made for the sake of those industries. If these tax breaks were unavailable to me, I'd pay the tax).

varadero
06-19-2015, 10:36 AM
These tax breaks are taking business away from European yards, not next-door USA yards ,you fool. Cricky, these boats are not local...... This is good for you. Boats float, they move.

Dan McCosh
06-19-2015, 12:31 PM
I can see exempting boat repairs from a sales tax. What I don't get is charging the tax on repairs under $60,000. It's just one more in the long list of regressive tax policies.

john l
06-19-2015, 06:31 PM
There is a parallel with private aircraft. NYS has higher sales tax on maintenance and it drove repair work to other nearby states resulting in lost jobs. This Florida tax break may simply make the boatyards more competitive with nearby states.
what sounds fishy from the get go may actually make a lt of sense. Then again it might not. Need more facts to be able make conclusions.

Ted Hoppe
06-19-2015, 06:52 PM
This is preemptive... Imagine the number of boats going to Cuba for repairs once regular relations and an embassy opens up. it will be a regular thing for big yachts to be fixed there.

Now the rich will have a valid reason to visit Cuba - for yacht repair, investment all with government approval. Old Havana will be back - Copa Cabanas, beautiful whores, great rum and expensive cigars.

Canoeyawl
06-19-2015, 10:32 PM
This is preemptive... Imagine the number of boats going to Cuba for repairs once regular relations and an embassy opens up. it will be a regular thing for big yachts to be fixed there.

Now the rich will have a valid reason to visit Cuba - for yacht repair, investment all with government approval. Old Havana will be back - Copa Cabanas, beautiful whores, great rum and expensive cigars.

Good point, but poor Florida will never be able to compete with Cuban labor. They have been starving for so long that a one hundred dollar day will seem like a million bucks.

Waddie
06-19-2015, 11:24 PM
Good point, but poor Florida will never be able to compete with Cuban labor. They have been starving for so long that a one hundred dollar day will seem like a million bucks.

Florida already has Cuban labor.

Good to see that at least a few here recognize this as an attempt to create some jobs. Whether it will work is open to debate; considering everything is now mobile and workers in one location compete with workers elsewhere, on a global scale. But it's not just about labor costs; locations elsewhere often have no OSHA rules, nor environmental standards, nor workman's comp to pay, nor do they have to worry about litigation every time they turn around. They can use products that are banned here, and taxes are just about zero. So, good luck, Florida.

regards,
Waddie

Ted Hoppe
06-19-2015, 11:40 PM
Good point, but poor Florida will never be able to compete with Cuban labor. They have been starving for so long that a one hundred dollar day will seem like a million bucks.

imagine a delivery ship running between port Everglades and Cuba three times a week. For the cost of a bottom job in Florida you could get a ones keel bolts, engine work and bottom job including the delivery for that price.

http://www.charterworld.com/news/wp-content/uploads/2014/02/1-DYT-Yacht-Express-Port-Everglades.jpg