Showing posts with label Connecticut. Show all posts
Showing posts with label Connecticut. Show all posts

2/08/2016

Preying on taxpayers to finance inefficient government

We often hear real life stories of people accused of crimes accepting a plea bargain even though they're innocent.  If the deck is stacked against you and the state is determined to convict, people commonly accept the lesser of two evils.  Standing on principal and refusing to plead guilty is often seen as foolhardy.  Thus, I may be considered a fool for what I'm about to tell you.

Since 2007 when the "great recession' began, the state, desperate for revenues, began aggressively pursuing corporations registered in other states who do  business in Connecticut without a Certificate of Authority.  The certificate requires a simple registration and annual fee, but many companies are unaware of the requirement because the state does nothing to publicize the fact. 

I did my due diligence in 1986 when I started my small, one-man, NY corporation with its sole office in Connecticut where I reside.  A prominent law firm and a CPA were engaged to make certain everything was done properly, but they knew nothing of this certificate.  We complied with all requirements by the Department of Revenue Services including the obtaining of a Sales and Use Permit allowing  us to charge CT sales tax.  For 28 years everything was copasetic until I recently received an assessment for $6,375 in past fees plus $59,985 in penalties for failure to obtain a Certificate of Authority. 

How could this have gone on for nearly three decades without a notice from the state?  If I never acquired a Certificate of Authority granting me permission to do business in the state, how could I be given the authority to charge sales tax?    

Currently, the state assesses a $300 penalty for each month the fee is not paid with no cap and apparently no statute of limitations.  The penalty is the same whether you are a Fortune 50 company or a tiny business like mine.  This poses a conflict of interest for the state.  By continuing to keep taxpayers in the dark, Connecticut makes a great deal of money.  

According to an August, 2013 article in the Hartford Courant, "State Collects At Least $1M Yearly In Penalties From Out-Of-State Firms," a spokesperson for the attorney general’s office, Susan Kinsman, admitted:  "Often companies are unaware of the requirements, rather than trying to deliberately circumvent the law."  And yet the state does nothing to effectively notify businesses of this statute.

There are two purported benefits for requiring out-of-state businesses to register.   One, is to protect consumers with grievances against out-of-state firms by requiring a point of contact in Connecticut to accept legal papers.  This does not apply to my company since the only point of contact is, and always has been, a Connecticut address.  The second is to protect in-state companies from unfair competition.  All my company's revenues have historically been from New York based businesses.  So neither of these justifications applies to my company.  In light of my circumstances, Governor Malloy's campaign claim of promoting small businesses seems a bit disingenuous.

In almost every instance where I have done wrong in my life, I can clearly see the mistake and learn from it.  But, in this particular case I see none.  I did my due diligence in setting up my company and dutifully paid my Connecticut corporate taxes for 28 years noting I was registered in New York.  And yet for nearly three decades I received no notification of wrongdoing.  Now, when the state is desperate for money they suddenly drop 28 years of fees and penalties on my company's lap at a time it is struggling to remain solvent.  

In light of my companies current financial situation, the state has reduced my assessment to $12,750 which still requires me to pay 28 years of fees within two years along with $6,375 in penalties.   Unfortunately, the amount would still pose a heavy burden and the penalties are draconian given the state does nothing to alert companies of the law. 

Although my home has been on the market since early May, I had planned to remain in the state to continue foster parenting which I hoped would lead to adoption.  This horrible situation will likely force me to file for bankruptcy and leave.  As a consequence, Connecticut stands to loose an honest, long-term corporate and individual taxpayer, as well as a foster parent and prospective adoptive parent. 

All this has been expressed repeatedly to state officials including two certified letters to the governor, and the only response has come from a state attorney who refuses to compromise any further or even admit the state bears some responsibility. 

Regardless of whether you deem me a fool or even ungrateful for the state's reduction of fees and penalties, the state should not prey on its own taxpayers to fuel its inefficient government.

12/10/2014

Should the wisdom of age be valued in adoption?


The three things I desperately needed as a child growing up in a home fraught with alcoholism and spousal abuse were peace, love, and understanding.  I think that is all any child seeks.

Now at 61, single, and embodying much of what my parents lacked, I’m trying to adopt a foster child of color between the ages of 5 and 11.  Given all I heard about the dire need for adopting parents I thought it would be relatively easy, but after 16 months of waiting without any real prospects I’m left with the suspicion that my age, race and marital status may be issues.

Of course, at first glance, I would not appear to be the ideal candidate, but I believe children principally respond to human qualities, not age, race, or marital status. 

Although I am older than most parents with young kids, I am in ideal health, top physical condition, very active, eat healthy, never smoked, and drink moderately.  Conversely, my young parents chain smoked, drank excessively, and had poor diets.  My father died at 60 from renal failure likely the result of drinking and my mother died at 70 from emphysema caused by smoking.

Admittedly, my life span with a child growing into adulthood may be shorter than younger parents, but longevity is not as important as other criteria required to successfully raise a child. 

Although by no means am I rich, I am financially comfortable.  I’m past the stage where one’s career is a preoccupation and a source of stress in a household.  I work from the home so in many respects a child will have more parental face time with me than many families with two working parents.  And most importantly, I have the wisdom, maturity, and self-awareness that often comes with age.  All this can benefit a child enormously in the formative years, particularly a troubled, traumatized, neglected child. 

The only carefree period in my childhood was living in a single parent household for five years when my parents temporarily separated.  With divorce rates soaring today, you could argue that certain single parents offer more peace and stability than some married ones.

My interest in transracial adoption is probably not helping my prospects either.  And that’s somewhat understandable.  No one can expect minority communities to stand up and applaud a white society who enslaves and oppresses them for centuries, and now wants to ride in as heroes and rescue their children.

But the facts remain that children of color accounted for more than half the children entering foster care in the U.S. in 2011 according to Childwelfare.gov,  And twenty-seven percent were African American, double the percentage in the general population.

A new study, titled "Race for Results," conducted by the Annie E. Casey Foundation found that Asian and white children were far better equipped for success than American Indians, blacks*, and Latinos.  The study described the challenges facing African-American children as "a national crisis."

Although meaningful, sustainable social change is clearly and desperately needed, such change in America takes time and political willpower.  Children who need homes cannot afford to wait for the glacial process to occur. 

Social workers should welcome white parents who understand that racism and discrimination still exist in America and that raising a child of color will not be easy.   White parents cannot ignore black history or culture, nor isolate a child from the black community any more than they can change the color of the child’s skin.  But, any good parent, regardless of color, instills in their children the skills, insight, values, and self-esteem to cope with any weaknesses they have or obstacles they face, including racism.  

A black journalist, Darron T. Smith, in his Huffington Post blog sums it up when he says, "I remain hopeful that white adopting parents have the desire, courage and conviction to move beyond the racial frame that ‘race no longer matters in American society' and look to understand the two worlds your adoptive children will inevitably live in. Merely raising and loving a child whose racial makeup is different from the birth parents is not enough to counterbalance any societal stigma a child of color might potentially face while living and existing in whiteness. If whites fail to take ownership of this problem in order to deflect any semblance of racism away from them, then we as a society further fail in our efforts to instill wholesale change."