CA Republicans block yacht tax

Tax And Budget Priorities: Schools No, Yachts Yes
by Dave Johnson | February 19, 2008
SmirkingChimp

Do you know about the California yacht tax loophole? Here is how it works: Regular people like you and me have to pay sales taxes on the things we buy, even on big items like cars. We even have to pay these taxes if we buy outside of the state. (Technically that is called a "use" tax.)

But California has a special tax loophole just for the things rich people buy. That's right, if you buy a big yacht, airplane or "luxury recreation vehicle," you don't have to pay sales tax. The way this loophole works is, you buy it outside the state, hold it there for three months, and then you have a sales-tax-free yacht.

Last week there was a budget battle in Sacramento that resulted in a number of cuts that will have a big impact on regular Californians. But the Republicans held firm and blocked attempts to do away with the tax loophole that lets rich people get out of paying the taxes that the rest of us have to pay.

From Saturday's San Jose Mercury News, Cuts hit schools, social services, MORE TRIMS LIKELY; GOP BLOCKS YACHT-TAX BILL,

"... lawmakers Friday chopped more than $2 billion from state programs, with schools, social services and health care providers that serve the poor taking the biggest hits."

That's right, more than $500 million was chopped from our schools!