Florida Republicans Back Tax Breaks For Plane & Yacht Owners

Florida’s House Republicans said “This isn’t about raising revenue.  Oh no! This is about fair and balance taxation system.”   Well, that is certainly obvious that it isn’t about raising money.

Buyers of yachts and private airplanes in Florida would be spared from paying the full 6 percent sales tax on their purchases. But magazine subscribers would now start paying taxes.

Those were among the decisions the House Finance and Tax Council made Monday as it weighed revisions to Florida’s tax system in a wide-ranging bill that creates two sales tax holidays for shoppers and leaves the budget $25 million in the red.

They were confident they would find the needed money by the end of the legislative session on May 1.

Their reasoning on the magazine tax is:  if a person purchases one at a bookstore or drug store it is taxed, whereas if it is sent to your home it is tax-free.

Let’s see if I understand this.  The Republicans are trying to fix a budget that is in the red by $25 million, so they are going to put a tax levy on magazine subscription arriving at your home for something that only cost approximately $5.00.  But, they are going to give a free pass to yacht owners.  Considering the least expensive yacht is going for $24 million, of course, that is only a dinky 157-footer.  If we look at the high end, my prices are a little out of date, the top ten yachts average $64.37 million.  I guess we can all see how they would consider this equitable – when you consider what Forbes Magazine had to say about people who own yachts:

As the old saying goes, yachting is like standing in a cold shower fully clothed while pushing hundred-dollar bills down the drain with your toes.

This makes all the sense in the world, only if you’re a Republican…..

7 thoughts on “Florida Republicans Back Tax Breaks For Plane & Yacht Owners

  1. This link was incomplete FR:
    Florida’s House Republicans said “This isn’t about raising revenue.”

    “Some of decisions in the tax bill were motivated by equity: Because a magazine that arrives in the mail is tax-free but the same magazine is taxed when sold at a convenience store, they argued the tax should apply to both.

    Others were motivated by tax avoidance: Florida residents too often skip paying sales taxes on purchases of high-end planes and boats by keeping them out of state for six months. By capping the tax, legislators argued, buyers may keep their boats and planes in Florida.”

    As usual Republicans use a half-assed logic to make their points. If the sales tax dodge is simply to keep the luxury item out of the state for six months, simply end the six month rule entirely, and tax the item when it is registered and licensed, like they do car sales in Alabama.

    And the principle behind the tax on magazines applies to all mail order purchasing, including internet, or it applies to none. They really can’t use it just on magazines, besides which, print media is on the decline already, and it needs no additional disincentives.

    Remember The Luxury Tax?
    It is time to bring it back again.

  2. I read that article House and just died laughing at the ridiculous excuse they gave. Let’s face it, the reason they are giving a free pass to those folks is because they are big campaign contributors. If they can afford a $24 to $64 million dollar yacht, they can afford to buy off a politician that will vote in their best interest.

    I completely agree, they should bring back the luxury tax 🙂

  3. How about we just say anyone making over a million bucks a year gets taxed at the 100% rate. Give them the first mil, tax free.

    Odds are if they are making over a million a year, 1) they don’t need any more to live in reasonable luxury and 2) odds are they are doing something they should need to make amends for.

    This would take away the greedy need to just keep accumulating money for the sake of getting richer.

  4. “How about a 400% tax on golfing green fees?”

    I realize all the bad that comes with golf courses, but, alas, I am a golfer. My mother taught me when I was 9. I have had a membership at a club for 15 years. I just love it. The challenge (started a 25 hcp and have a steady 8 hcp now), the being outside (my course, Redwood Meadows is on a river and near the foothills) and the being out with the boys (my brother joined the same club last year).

    Maybe someday I’ll make it up to the world.

    If there was a tax, I have some wiggle room and would gladly pay it.

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