76-13-A6
- Main Page \ Reagan Radio Commentaries \ 1977
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Kidco
TranscriptKidco Incorporated, of Ramona California, has had -- among other commercial pursuits - - a contract with an equestrian center to clean the sawdust, wood shavings and manure out of the stalls. Kidco does this in return for getting the use of the material it removes from the stable. The corporation profit comes from composting this material and then selling it as fertilizer to nurseries and a country club. Recently, the California Board of Equalization declared that this constituted sale of a tangible product, therefore a seller's permit was required and sales tax due, retroactive to the date the arrangement began. The president of Kidco Incorporated was ordered to appear before the Board with the books and records of the Corporation. Richard Cessna , Jr., the President, said that since Kidco had been incorporated outside of California he was not aware of the need for a seller's permit. As for the sales tax, he had a pretty good argument and one that sounded reasonable. Sales tax had been paid already on the wood shavings and other material when it was in the form of feed purchased by the equestrian center and he didn't think it was due again. At any rate, President Cessna appeared before the Board of Equalization. The meeting was amiable with no such bureaucratic procedures as fines or punishment. Kidco will get a seller's permit and begin to pay sales tax. Now, if this seems to be a rather routine and minor bit of corporate government disagreement hardly worth becoming a radio event, let me add a few details. Richard Cessna, Jr., President of Kidco Incorporated, is 12 years old. Vice President of Kidco is his nine-year old sister, Ne-Ne . Sister Bette, age 11, is secretary of the corporation and their half sister, June, 14, is treasurer. The owner of the equestrian center, from whence comes Kidco's stock-in-trade, is their father. I'm sure the California State Board of Equalization found the situation a little unusual. Make no mistake about it, Kidco is a real corporation, legally registered. The kids do all the work themselves, plus some other money-making activities such as street and driveway clean-up in the community. I don't know what the overall annual income of the corporation is, but the hearing did bring out that in one recent month the gross receipts were three thousand dollars. Maybe this incident is an indication of our changing world. Once upon a time we taught our children the fundamentals of free enterprise and thrift with jobs such as paper routes, mowing lawns and, of course, the traditional summer lemonade stand at the front curb. But it's a different world now; one in which the alphabet is more than A. B. C. If you are going to be in business it's F.T.C., B.L.S., I.R.S., N.L.R.B. and all the multitude of alphabetical agencies, federal, state and local that are now involved whenever, and wherever, buying and selling takes place. I take my hat off to Mr. Cessna, Senior and hope, with all my heart, the officers of Kidco Corporation have not been discouraged or made cynical by their first experience with the intrusive and benevolent hand of officialdom. Just the same, I'm a little nostalgic for the good old days. This is Ronald Reagan. Thanks for listening. |
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