The current political campaign in Connecticut, strangely enough, is doing an excellent job of highlighting the best and the worst of our system of governance. Some miscellaneous musings:
The worst news ever is that Connecticut is facing a budget deficit. State spending on all manner of goodies, such as the university system, the legislative office building, public works, etc., has exceeded its means once again. This crisis, of course, can only be resolved by “increasing revenues,” which is the technical euphemism for increasing tax rates, or even more interestingly, increasing the rate of tax collection.
The truly ugly, icky radio campaign narrated by the Department of Revenue Services commissioner, therefore, is seemingly inspired by the state’s need to raise some fast ready cash. The “I’m coming to get you,” and “Pay up or else,” radio ads are aimed at any tax scofflaws (this means you) who have neglected to pay their use tax. Use tax, the companion to sales tax, has been around forever, but is a completely esoteric notion to most consumer taxpayers. Whereas the Interstate Commerce clause relieves the out-of-state vendor of tangible goods from the burden of having to collect and remit sales tax to the state of Connecticut, our state tax law provides that use tax must be self assessed and paid to the state by the consumer himself. Connecticut businesses are perpetually audited for this tax, religiously accrue it on their books, and pay it quarterly. But the vast majority of individual consumers know very little about how it applies to their Internet or catalog purchases.
No matter what the severity of the state’s need for cash, consumers who are mostly ignorant of the law should not be treated like criminals by the state. In our completely voluntary system of taxation, the state and the federal government are benefited by the fact that the overwhelming majority of taxpayers are honest, and, notwithstanding the complexity of tax law, make a real effort to accurately pay all taxes owed. Once in a while, a big fish like Tyco executive Dennis Kozlowski will be bagged, after an appropriately conducted investigation. New York sales tax on his multi-million dollar art acquisitions was a significant liability, and the facts of that case showed a clear intent to evade. Connecticut grannies buying cubic zirconia on QVC, however, are not public enemy number one.
Neither are most millionaires, and Bill Curry’s speechwriters keep perpetuating a bad misstatement when he touts his “one percent” increase on the income tax for that group. What he really means is a “one percentage point increase.” That, of course, is a 25 percent increase to the income tax for millionaires.
A MEMORIAL
I would like to take this remaining space to mention someone truly good, namely, the late State Representative John Martinez, who was tragically killed on Oct. 11 in a car accident. John was a leader of the Latino community in New Haven, who, after he became a legislator, earned major respect in the greater community. He was not a lawyer, but he was a great friend to the Connecticut Hispanic Bar Association, and championed many causes as a member of the legislature’s Judiciary Committee, including the need for more Latino judges, and more Spanish language interpreting services for the judicial system. His rise, from our tiny state, to the presidency of the National Hispanic Caucus of State Legislators was a testament to his strong personality, and his dedication to the constituency he served so well. He was one of the good guys.
Santa Mendoza is an associate with Suisman Shapiro in New London.
