Tax breaks for yachts

Well, it happened once again. The Chron reports that John Davis and Larry Taylor have bills in both houses of the legislature being debated about, well, an important topic. The two want to give tax cuts for big yachts. Just a note here, the descriptor of “big” is the Chronicle’s wording, not mine. Evidently, this is specifically a tax cut for the extra-super-rich who own the big yachts, not the just normal super-rich who own the regular size yachts. You know, “working-class job creators.”

Evidently, the state does not have enough money to fund Medicaid expansion, but it has enough for this garbage. Words cannot express how unbelievably ridiculous this. I try to at least sound unbiased and fair in some of my articles, so I apologize as I come off as a little bit ticked off about this–because I am. Republicans claim that this is to compete with the State of Florida, who has lower taxes on yachts. So the argument goes, the extra-super-rich who own the big yachts will choose to keep their boats in Florida, therefore keeping all this yacht-inspired money & jobs out of Texas’s economy.

There is only one problem with this. The amount of money saved by the average yacht owner would probably be negligible for someone who would buy a TWENTY-MILLION DOLLAR BOAT. Additionally, having to relocate your seafaring point of departure to Miami from Galveston would probably be a serious investment, especially considering how much your private jet would have to fly in between (although your jet might get a tax break of its own).

I am reminded what Mike Villarreal said of this bill, back in 2011 when it was considered as well. As quoted by The Wall Street Journal: “Have you considered turning this into an omnibus bill, and including limousines and fur coats and other luxury items? Because you know, we haven’t cut education enough this session, and there apparently aren’t enough nursing homes on the verge to close. What else can we do to bleed the state?”

Make no mistake, this is the priority of the TX GOP: yachts over youngsters.

One thought on “Tax breaks for yachts

  1. There is another side to this issue. few years back Texas raised taxes on “yachts” so this must of course made more money for the state right? Well no Texas just ended up losing tax revenue and jobs. The big benefit to raising taxes? Well it helped Florida where the taxes were lower. If the desire is to maximize revenue then surprisingly enough raising taxes doesn’t help when it’s on items items that people will go elsewhere to buy. If it’s to punish “rich” people so be it but that may come at a cost to business and working people,

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