Make everyone play by the rules

Recently, in the news, I read about the federal government awarding lucrative contracts to companies that aren’t paying their fair share. The article stated that lots of tax money is being handed over to “war on terror” contractors who don’t even bother to pay taxes.

Congress is alarmed, but it is of no surprise to me. Giving our money to tax cheaters happens too often, even here in Independence and in Jackson County.

For instance, a former city manager once told the Independence City Council that it was not a priority to verify that companies getting your tax dollars were in “good standing,” were properly “registered” and had the “authority to do business” in the state of Missouri.

He said it was too much trouble and would take too much time. The fact of the matter is that the information was readily available in seconds online or in minutes by phone.

At that time, the city manager pushed forward into a contract exceeding $100,000 with a contractor not legally able to do business in Missouri.

It is sad to say that your tax money went to a company that was breaking the law. The city manager’s inaction made the city a willing accomplice, and your tax money benefitted a company that was cheating.

Another example of a company not paying its fair share is S.G.B. Communications Inc. This company is currently doing business, by the owner’s public admission, and yet it was “administratively dissolved” on Sept.4, 2002, nearly six years ago.

And why should we care about that particular company over all the others? Because a public official, County Legislator Scott Burnett, claims he owns and operates it.

But since it is not registered, we can’t verify those statements. However, a quick records search shows us that no company using that name can legally conduct business in Missouri.

And a prime example of why it is so important to check registration is that even a company owned by a person of high regard can fail to comply with the provisions of state law. For two and a half years, Fred Arbanas Inc. forfeited the company’s “authority to do business” from July 23, 1990 to March 12, 1993.

Now stop and think. An attorney can’t practice without a license. A doctor can’t practice without a license. And a corporation can’t conduct business without a license.
 
And you know that as average citizens, each of us must show proof that we have paid our taxes before we can get our car license. Shouldn’t a contractor or a company be registered and in “good standing” before our city and county governments cut them a big fat check? 

A sharp council person or city manager would move his city forward by adopting a procedure that guarantees a company is paying its fair share of taxes before handing over your tax money.

And checking up on tax compliance should include annual registrations and being in “good standing.” It is quick and easy to verify, and it is a part of good stewardship of the public finances and trust.

A lack of concern by elected officials and administrators is a slap in the face to honest taxpayers whether on the national, state, or local level.