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Massachusetts Tech Tax Repealed

Saturday, September 28, 2013

 

Tech tax repealed - Worcester reacts. What are people saying?

The Massachusetts Legislature has repealed the controversial technology tax that was part of the $500 million transportation financing bill. The tax would have imposed a 6.25% sales and use charge to several information technology services, from computer system design services to the installation or configuration of standardized software.

“This is a huge win for the business community,” said Andrew Bagley, Director of Research and Public Affairs at the Massachusetts Taxpayers Foundation, which opposed the tax from the outset. “We’re absolutely delighted that the legislature and the Governor thought about this and listened to the business community, and came to the conclusion that this way not a good idea and acted quickly to repeal it.”

Bagley explained that the tax was repealed retroactively which means that no companies will be responsible for paying any of the sales taxes incurred since the tech tax’s passage on July 31 of this year.

“With one-party rule on Beacon Hill we’re doomed to more out-of-control hikes and invented taxes so ill-conceived they have to be repealed as soon as they’re passed,” said Kirsten Hughes, chairperson of the Massachusetts Republican Party. “Republicans were against the Tech Tax from the very start because it kills our innovation economy.”

"The Forever Gas Tax is our next repeal challenge,” said Hughes. “This tax goes up automatically without legislators even having to bother to vote for it. We are going to harness the same grassroots energy and Republican leadership that got the Tech Tax repealed and use it to fight the Forever Gas Tax."

Reactions from Worcester Community

John Weston, host of WRCN’s Conservatively Speaking, was also happy with the technology tax’s repeal, but fearful of future taxes.

“I’m worried about what they’re going to put in its place,” Weston said. “The pass things and they see what they can get away with. They didn’t get away with this one because the second largest industry in the state said ‘Hey, I don’t think so.’”

“I’m concerned that they’re going to try to push the carbon tax out of committee and sow us with that one which would tank our economy,” he said. “They’re calling it a carbon based fee, but it’s whispered that it’s a sin tax because carbon is sinful. I’m real concerned that if we’re not paying attention, they’ll slide this thing out.”

Weston also expressed concern over the gas tax mentioned by Hughes, citing its potential to rise automatically with inflation and without any legislative oversight.

“It’s hilarious to watch the same Democrats who pushed through the tech tax with an overwhelming vote, now say they had nothing to do with it,” said Michael Graham, a conservative talk radio host and columnist for the Boston Herald. “Nobody supported the existence of it. This is Massachusetts – nobody can support it and it can get a 90% vote and then a 100% vote to repeal it.”

Post Tech-Tax Future

Tech tax gone -- more taxes to come?

Unlike Hughes and Weston though, Graham was less fearful of things to come – for now.

“Speaker DeLeo is just afraid enough of the 2014 election to not do anything,” Graham said. “But nobody who flip-flopped on the tech tax will lose because of the flip-flop. So if everyone gets reelected, they’ll be back for more taxes.”
 

 

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