TX budget crisis: tax expenditure for yachts

[boutons_deux]

http://www.rawstory.com/rs//wp-content/uploads/2011/05/Yachts.jpg

would cap the maximum sales tax the state could collect on the sale of a yacht. It was passed by an 8 to 3 vote along party lines, with Republicans supporting the measure.

The tax break comes after Republicans proposed deep cuts to education, nursing homes, and other basic government services. The state has a $27 billion deficit.

http://www.rawstory.com/rs/2011/05/02/texas-house-panel-approves-tax-break-for-yachts/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheRawStory+%28The+Raw+Story% 29

[Winehole23]

Sacrifices for the upper class are considered "anti-business," "class war" even, while scaling back services for the poor and middle classes gets the "reform" moniker.

[Cry Havoc]

Sacrifices for the upper class are considered "anti-business," "class war" even, while scaling back services for the poor and middle classes gets the "reform" moniker.

They're creating jobs by allowing the rich to employ an extra hispanic to clean their yacht.

[Winehole23]

They're creating jobs by allowing the rich to employ an extra hispanic to clean their yacht.There's even a bill out there that allows that domestic employee to be an illegal alien. The same bill proposes heavy fines for all those who dare to employ illegal aliens as other than nannies, gardeners or housekeepers.

[JoeChalupa]

whoohoo! I'm going yacht shopping this weekend.

[Wild Cobra]

Sacrifices for the upper class are considered "anti-business," "class war" even, while scaling back services for the poor and middle classes gets the "reform" moniker.
Isn't it better to keep the yacht sales local, rather than the rich buying them else where?

A high percentage of nothing is nothing. A lower percentage of something is more.

[Spurminator]

If it results in a net tax increase by increasing yacht sales in the state, I'm fine with it. Makes for an ugly headline during these times, but it's not an inherently flawed idea... I have no idea what kind of revenue this means for the state, though.

[Nbadan]

You really think someone buying a yacht is worrying about the sales tax? Typical conservative alternative reality.

[angrydude]

wasn't this done before quite infamously, even if not in Texas. As I recall the yacht industry went down and the only people who were really injured were poor saps building the things.

[CosmicCowboy]

You really think someone buying a yacht is worrying about the sales tax? Typical conservative alternative reality.

They didn't get rich by throwing money away. Last guy I knew that bought a big offshore boat bought it in Florida.

[TeyshaBlue]

You really think someone buying a yacht is worrying about the sales tax? Typical conservative alternative reality.

Apparently. Sales plummeted the last time we did this and the layoffs were not pleasant.

Of course, you can't see this. Typical moonbat alternative reality.

[TeyshaBlue]

whoohoo! I'm going yacht shopping this weekend.

Don't forget your coupon. 2 immigrants with the purchase of a 50 footer!

[boutons_deux]

regressive tax expenditures to support the wealthy

widespread budget cuts to screw the non-wealthy

aka, that's how Repugs roll.

[TeyshaBlue]

A complete lack of intellectual honesty and critical thinking.

aka, that's how boutons rolls.

[101A]

You really think someone buying a yacht is worrying about the sales tax? Typical conservative alternative reality.

I think the answer, as bewildering as it might be, is "yes".

If they want to cap ALL sales tax on large items, based on a % of income (so that everyone has an opportunity to take advantage) I might be persuaded; but this smells of someone getting ready to make a sizable purchase; and getting a personal favor.

[Wild Cobra]

You really think someone buying a yacht is worrying about the sales tax? Typical conservative alternative reality.
You didn't hear about Kerry?

Sen. John Kerry skips town on sails tax (http://www.bostonherald.com/track/inside_track/view.bg?articleid=1269698):

[scott]

If it results in a net tax increase by increasing yacht sales in the state, I'm fine with it. Makes for an ugly headline during these times, but it's not an inherently flawed idea... I have no idea what kind of revenue this means for the state, though.

The Fiscal Note for the bill shows it being a loss for the state. I didn't dig too much into the methodology, since I really don't care that much... but usually on these Fiscal Notes they try to show incremental revenue if it could be created.

http://www.capitol.state.tx.us/BillLookup/Text.aspx?LegSess=82R&Bill=HB2187

[Spurminator]

Interesting, thanks. I say give it a year or two and revisit if revenue didn't grow. Of course, they would never reverse it because reversing tax breaks is socialist class warfare.

[scott]

The Fiscal Notes can sometimes be... well, lazy, IMO. Really depends on the issue. This one isn't big enough to warrant real economic analysis, so they just multiply the reduction in the tax by the number of boats sold and "BAM LOOK AT HOW MUCH MONEY WE'RE GONNA LOSE!" If it were something like raising/lower the sales tax, a more in depth note would have been written.

The bill just made it out of committee last week, so in a week or two a copy of the testimonies should be posted - though I wouldn't bet on there being any real economic analysis there. As I learned with my bill, economics (or even common sense) don't matter sometimes.

[Nbadan]

Apparently. Sales plummeted the last time we did this and the layoffs were not pleasant.

Of course, you can't see this. Typical moonbat alternative reality.

Oh, ok.... I guess I'll take your word for it because Manny said your never wrong...

:rolleyes

[Nbadan]

I think the answer, as bewildering as it might be, is "yes".

If they want to cap ALL sales tax on large items, based on a % of income (so that everyone has an opportunity to take advantage) I might be persuaded; but this smells of someone getting ready to make a sizable purchase; and getting a personal favor.

I'm thinking that a purchaser of a yacht is buying name brand and not worrying about a reduced sales tax, now, don't confuse that with a period of recession (like Mr. Never Wrong) which tends to lead to decreased purchases of all most all high dollar goods....like Scott said, to say there is correlation or causation is amateur....

[TeyshaBlue]

Oh, ok.... I guess I'll take your word for it because Manny said your never wrong...

:rolleyes

LOL....I already got punked today in the classroom/911 thread....by Manny no less. Dude, nobody can pack more fail in a single post than you.:lmao

BTW...I had to admit my position was wrong....you should try it sometime.

[Nbadan]

LOL....I already got punked today in the classroom/911 thread....by Manny no less. Dude, nobody can pack more fail in a single post than you.:lmao

BTW...I had to admit my position was wrong....you should try it sometime.

If I ever am wrong I will...thanks...

[CosmicCowboy]

I'm thinking that a purchaser of a yacht is buying name brand and not worrying about a reduced sales tax, now, don't confuse that with a period of recession (like Mr. Never Wrong) which tends to lead to decreased purchases of all most all high dollar goods....like Scott said, to say there is correlation or causation is amateur....

It's really simple math. Lets say a Bertram dealer in Florida is selling the exact same boat a dealer in Texas is selling for the same price...say 1 million dollars...

The buyer in Florida will pay one million dollars and the buyer in Texas will pay one million eighty one thousand...he is gonna buy in Florida every time and the dealer in Texas goes out of business.

[fyatuk]

No one said Texas politicians were smart or reliable.

[boutons_deux]

TX, a wannabe country, should impose tariffs on imported goods so TX won't be dragged into state-vs-state tax-expenditure wars. FL is "dumping" yacht sales out of TX.

[greyforest]

I would think most yacht buyers would buy yachts as a "business-related expense"

[CosmicCowboy]

I would think most yacht buyers would buy yachts as a "business-related expense"

WTF?

We are talking state sales tax. Has nothing to do with Federal tax deductions.

[Aggie Hoopsfan]

regressive tax expenditures to support the wealthy

widespread budget cuts to screw the non-wealthy

aka, that's how Repugs roll.

So what do you think of Obama's plan announced today to tax drivers by the mile driven? On top of the 30+ cents per gallon gas taxes already paid? :rolleyes

[Spurminator]

http://www.dailymail.co.uk/news/article-1384004/Per-mile-car-tax-idea-make-lost-petrol-revenue-dismissed-White-House.html


However the White House has dismissed the proposal as an early draft not formally circulated within the administration and not representing the views of Barack Obama.

Oil collapsed on Thursday, diving 10 per cent and sending U.S. crude back under $100 a barrel as investors ran for the exit doors.

Weak economic data in Europe and the U.S. fed concerns that have battered commodities all week.

German industrial orders fell in March while U.S. weekly jobless claims hit eight-month highs.

Brent crude plunged more than $12 at one point - exceeding the sell-off after Lehman Brothers' collapse - and U.S. crude broke below $100 for the first time since March.
‘This is not an administration proposal,’ a White House spokesman said. ‘This is not a bill supported by the administration.

‘This was an early working draft proposal that was never formally circulated within the administration, does not taken into account the advice of the President’s senior advisers, economic team or Cabinet officials, and does not represent the views of the President.’

[Wild Cobra]

I wonder how many liberals understand such economic realities.

[FromWayDowntown]

We can't fund our schools and are buried in a deficit, but yachts should be flying off the shelves.

At least the governor has declared his draconian "injured persons are mere costs of growing business" tort reform regime an emergency matter.

I feel as though I've gone through the looking glass.

(the quote is my own characterization; I don't mean to suggest that Gov. Perry has overtly acknowledged this aspect of his proposals)

[boutons_deux]

So what do you think of Obama's plan announced today to tax drivers by the mile driven? On top of the 30+ cents per gallon gas taxes already paid? :rolleyes

Given the upcoming, inevitable, deep, long-term economic catastrophe when oil becomes scarce, taxing oil so high now that alternatives are artificially made competitive is pro-Human-American strategy.

Of course, the Corporate-American oilcos will (continue to) do everything necessary to make the catastrophe occur sooner and deeper, since they will benefit enormously from oil at $200+/barrel from raping Human-Americans. aka, "catastrophe capitalism".