Did you know that Senator Lurch (D-MA) owns a yacht worth 7 million smackers?
Did you know that he docks said yacht not in his home state, but in the neighboring state of Rhode Island?
Did you know that by docking his M.V. Red November in R.I., Lurch saved not only half a million bucks in sales tax, but is also saving about seventy grand a year in excise taxes? That’s a lot of hay. The Commonwealth of Massachusetts could afford to employ another one of Governor Patrick’s entourage as Assistant Superintendent of Navel-Gazing for that kind of money.
Incidentally, this news item serves as a great real-life example of tax policy consequences. Lurch bought the yacht in RI, and is docking it there, because RI has abolished the tax in question. MA politicians, on the other hand, are “common-sense” folks who would laugh in your face if you told them that lowering or abolishing a tax can bring more business and revenue to the state than jacking it up. Now a RI business got to pull in a $7M contract precisely because of that lacking tax, a RI company gets to earn money with the maintenance on that boat, and another RI company gets to collect the slip and dock fees–all business that’s demonstrably lost to MA companies. And the state of Rhode Island still gets to make money, via all the ancillary taxes and fees that come with building, harboring, and maintaining a $7M yacht. Funny how that works…