Finally, something I can agree with from Harry.


"HK" wrote in message
...
Don White wrote:
"HK" wrote in message
...
Don White wrote:
"Chuck Gould" wrote in message
...
On Feb 7, 8:48?pm, Wayne.B wrote:
On Thu, 7 Feb 2008 09:00:54 -0800 (PST), Chuck Gould

wrote:
According to Uncle Chuck's Sage Financial Advice, two
mid-managers
grossing $200k should *typically* be looking at a boat somewhere
under
$500k.
It's also important to understand whether or not the boat will
qualify
for a "second home" deduction. ?That can improve net cash flow by
quite a lot in some cases.
Yes, and you simply recover the amount of income tax paid on the
money
needed to make the interest portion of the payment. A family in the
30% tax bracket would probably save about $2000/month in taxes
during
the early years of a $1mm boat note. Brings the net total down to
$8,000 per month before the boat ever leaves the dock, or about
half
the total *gross* income for the family. My point remains, $200k
per
year families are not buying $1mm boats......not unless great aunt
Harriet kicks the bucket and leaves them $500k to use for a DP.


Just doesn't make sense to me that high earners should get a tax
break on a luxury purchase such as a boat.
The US gov't should be putting that money toward your national
debt.
Well, we have bit of tax code here that should be altered or
dumped...it says you can claim a boat as a second home if it has a
toilet and suchlike, and therefore you can deduct the interest you
pay if you borrow money to buy it.

If I were rewriting tax code, I would restrict the upper amount of
interest deductible on second home purchases and I would require
that boats or any other "second homes" financed under such
"deductible" conditions have a certificate stating at least 75%
manufacture in the United States. I see no need to provide the very
wealthy with additional ways to avoid paying taxes.


We can't even claim the interest paid on the mortgage of your primary
residence...however humble it might be.


Unfortunately, tax laws in this country are the result of lobbying,
and, of course, are sharply skewed to favor the wealthiest. The one
proposal Mike Huckabee made that I liked was a national sales tax,
with exemptions for lower-income workers and retirees (with incomes up
to a certain level), in place of our patchwork quilt of income taxes
and deductions. As presented, Huckabee's plan is not workable, but it
certainly is a starting point.