BOSTON- While House and Senate Republicans moved in April to quash what is now widely accepted as a job killing technology tax foisted upon Massachusetts’ innovation economy by Democrats, critics across the state are now sounding the alarm. Despite the “foolishness” of this tax, every House and Senate Democrat voted for the “tech-tax monster.”
Worcester T&G: “It is clear, however, that we don’t need a new tax burden on the state’s most productive industries, including the life sciences, health care and finance.
“Arguing that state government needs the revenue ignores the fact that the private-sector economy needs that revenue still more. And suggesting that Massachusetts should follow the lead of other states in the name of tax fairness is foolishness. Massachusetts has a technological edge precisely because we do not tax these services, as many other states do.”
Springfield Republican: “As the Legislature considers revisions to the state transportation financing bill, basically on what taxes – including levies on gas and cigarettes – are needed to raise $800 million over the next five years, there’s one new tax provision in the bill that should get the boot.
“The measure in question is a proposal to extend the 6.25 percent sales tax to ‘computer systems design services’ – a term that is so broad it could apply to almost any business that depends on third-party vendors, from web to software designers.”
The Boston Globe: “Currently sitting on Governor Patrick’s desk is a state transportation financing bill that raises an average of $600 million in revenue over the next five years. Some of the money would come from hiking the cigarette tax, changing some business tax rules, and adding 3 cents to the gas tax. Yet the bill also includes an ill-conceived new sales tax on computer systems design services.”
The Boston Globe’s Scott Lehigh: “The new tax is a big concern because it would slap businesses with significant new expenses for making the investments needed to stay on the cutting edge in the digital age. Indeed, the foundation estimates that the new levy alone would amount to a 30 percent increase in the state sales taxes Massachusetts firms pay.”