Client pays a retainer of $10,000 for representation in a felony case

I suppose the new tax will work something like this: A client pays a retainer of $10,000 for representation in a felony case. You take the money and assess the new tax. Let’s say it is a 2 percent tax. My fee for that same case will now rise by at least $200. But is that enough? Not really. I will need to train staff to fill out forms. My accountant will need to audit compliance and, perhaps, prepare quarterly reports. New paper trails will need to be blazed and groomed.So rather than raise rates by 2 percent, I’d better raise them some to account for additional time and expense of compliance. Add another 2 percent, or make it now $10,400. But that’s an awkward number, so $10,500 it is. The point is a simple one. A tax on services will be transferred to clients, thus driving up the cost of legal services.

Posted in: Connecticut Law Tribune editorial.