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10 Hartford Business Journal • April 11, 2016 www.HartfordBusiness.com OPINION & COMMENTARY EDITORIAL Economic argument for legalizing weed not valid I f you put a pot of gold in front of state lawmakers these days they'll do just about anything to get their hands on it. Whether it's taxing Yale's endowment or penalizing large employers that pay workers below $15 an hour, lawmakers seem willing to float any idea that would raise revenues for a cash-strapped state. Some legislators are pushing for the legalization of recreational marijuana, using an economic argument to make Connecticut potentially the first New England state to allow residents of a certain age to get high without legal consequences. We think the argument is wrong-minded. To push for the legalization of an illegal drug simply because it will help the state raise new revenues is not sound economic, social or public health policy. It simply whiffs of desperation. To be clear, there appears to be little support for legalizing weed this legislative session. A legalization bill proposed in February has gone nowhere. But as the state grapples with growing deficits in the years ahead, marijuana proponents will harp on the notion that legalization could raise substantial sums of money – perhaps as much as $50 million annually, according to one estimate. Last week, pot proponents held an informational session to explore possibilities of legalization, even bringing in a state lawmaker from Colorado who crafted that state's first-in-the-nation recreational marijuana law. The main argument used was a fiscal one: If Connecticut doesn't act quickly, other New England states will legalize the drug first, preventing the Nutmeg State from maximizing the return on its legalization investment. Of greater importance than a fiscal argument, however, are the social and health effects legalizing weed would have on the populace, and whether or not we want to promote activities that foster lazi- ness and other potential harmful effects. Legalizing weed as a way to reform the criminal justice system, for example, is a better argument worth having, but even that notion is flawed. Gov. Dannel P. Mal- loy, for example, said he opposes legaliz- ing recreational pot even though he has made significant strides to decriminalize small amounts of the drug's use through his second-chance society initiative. While he doesn't necessarily want marijuana use to stain an individual's criminal record — damaging the employability of low-level offend- ers, particularly minorities — encouraging the drug's use, he recently said publicly, is not a road he wants to travel down. We aren't trying to be the social police. The political tea leaves may indicate that marijuana legalization will gain steam in the years ahead. So far, four states and the District of Columbia have already OK'd recreational use of the drug. But Connecticut shouldn't legalize marijuana simply because it offers a quick option to fill budget holes created by irresponsible stewardship of our state finances. We don't need to double down on stupid. n HARTFORDBUSINESS.COM POLL Should CT legalize recreational marijuana use? ● Yes ● No To vote, go online to HartfordBusiness.com. Last week's poll results: Will bioscience be the CT economic engine most hope it will be? 40% Yes 35% No 25% Too early to tell EXPERTS CORNER Treating tax time as an opportunity By Andrew S. Lattimer and Thomas Krywinski W ith just a short time to go before Tax Day on April 18th, many people now find themselves laser-focused on pre- paring their income tax returns for themselves, their families or their organization. It can obvi- ously be a deeply involved process, filled with nuances, possibilities and challenges fil- ers have perhaps not yet thought about. Research and atten- tion to detail should be a priority. Why should people be so strategic and involved, particularly on something that happens once a year and so often seems so routine? That's exact- ly the reason they should — because Tax Day only comes once a year, to make sure your filing is done in a way that makes it most beneficial to you. Treating tax fil- ing as a priority could mean a better return for a business owner in terms of potential sav- ings and deductions. Tax filing season is an opportunity and should be treated as such. With that in mind, here are some tips that can allow filers to do just that, tips that are never too late to put into practical applications. Organization is essential — This may seem quite obvious, but a good tax filing starts with proper organization. Make sure you have all your necessary paperwork in a row, whether you are preparing a tax return yourself or having it prepared professionally. Make sure all pertinent receipts are accounted for, particularly receipts for chari- table contributions. Be certain that non-cash contributions are considered — proper documentation will give filers peace of mind in knowing that every box has been checked, and could save you some difficulty down the line. Be mindful of all potential deductions — Here is the part where you can really start saving some money — there are numerous deductions made available every year to filers that were created to provide relief; the problem is many simply do not know about them. That's why you need to ask the right questions and do the right research. Ask yourself each of these questions, and possibly others, when it comes time to think- ing about potential deductions: • Did you install any energy-efficient equip- ment (i.e. water heat- er, windows etc.)? If so, there are ample tax deductions avail- able that could bring impressive savings. • Have you con- sidered educa- tion expenses and accounted for them? Tuition, college sav- ings accounts, stu- dent loans — there is vast potential for savings here. Con- sideration should also be given for dependent education expenses and who should claim them. • Did you capture all your real estate and personal prop- erty taxes paid? • Do you have any foreign investments? Managing your refund — For those fortunate enough to receive a refund – or perhaps more to the point, for those whose care- ful organization and consideration of all potential deductions has led them to a refund — this becomes a cash infusion that needs to be managed as well. For starters, it is good advice to always use direct deposit rather than asking for a paper check. It's a modern convenience, but it's also a more secure way of receiving money, and direct deposit will enable your refund to arrive faster. And once the money is in your account, there is still more planning that can be done. Should it be invested? Should it be put back into a business? Remember the importance of Tax Day on April 18th. Every filing brings opportunities. n Andrew S. Lattimer, CPA, and Thomas Krywinski, CPA, are partners with West Hartford-based accounting-consulting firm BlumShapiro. Andrew S. Lattimer Thomas Krywinski ▶ ▶ To push for the legalization of an illegal drug simply because it will help the state raise new revenues is not sound economic, social or public health policy. It simply whiffs of desperation. ▶ ▶ There are numerous deductions made available every year to filers that were created to provide relief; the problem is many simply do not know about them. That's why you need to ask the right questions and do the right research. Send Us Your Letters The Hartford Business Journal welcomes letters to the editor and guest commentaries for our opinion pages. Electronic submissions are preferred and welcome at: editor@HartfordBusiness.com. Or you may fax submissions to Editor, Hartford Business Journal, at (860) 570-2493.