Computer Tax Will Hurt Maryland

Do you want to tell this guy you are
taxing the service to get him out of
this predicament?

Source: "Computer Tax Will Hurt Md." TOM LOVELAND, The Washington Post, January 7th, 2008.

Loveland writes:

But the future of Maryland's strongest sectors is in jeopardy. In November, the legislature voted to extend the state's 6 percent sales tax to cover computer services. Many of us in Maryland's technology sector were astonished by the move, which will hurt the welfare of industries beyond our sector and will drive some businesses out of state.

This new tax, which takes effect in July, will put many Maryland businesses at a severe disadvantage. Innovative technology fuels business growth and job creation, but it can be expensive and risky. So it's often the last thing a business invests in, using the final dollars of its technology budget, if any remain. But now those final dollars will be diverted to the tax, significantly curbing investment in innovation and dampening job creation. Small businesses -- the least able to sidestep the tax and a key generator of new jobs -- will be particularly affected.

Comment: The obvious answer is for the legislature to repeal this tax, and find the money elsewhere.

There is an old adage, that "any new tax is a bad tax". But a legislature that passes a tax without due consultation with the people who will be affected and with the public -- as apparently this tax was passed -- is increasing the probability that the result will be really bad! JAD