A few days ago I posted an article about how local politicians are claiming they have to give tax breaks to rich people or else the wealthy will move somewhere else — despite the fact that more than one study has shown that this is completely false. Well, here’s an even crazier example.
The Texas state budget is running a $27 billion deficit and Republicans are proposing massive cuts to education, nursing homes, and other government services. But that isn’t stopping them from giving a big tax break to — I’m not making this up — yacht owners.
Republicans say they have to put a cap on sales taxes paid by yacht owners because if they don’t, potential yacht owners will travel to Florida, which already has a similar sales tax cap. Seriously. They claim that yacht owners will move to Florida to avoid paying sales taxes on their yachts (even though the above-mentioned studies showed that rich people didn’t move for lower income tax rates, which is a much bigger bite).
As one Democratic representative put it “With all due respect, sometimes I’m not sure what planet my Republican colleagues live on.”
What will those Texas Republicans do if Florida decides to subsidize caviar?