In The News: Transportation

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Massachusetts House rejects Gov. Deval Patrick's proposed changes to gas tax bill

Jul 17 2013

By Dan Ring, The Republican

A business leader said Wednesday he feared that the tax on computer and software services would damage the state's economy. "This is a real rifle shot at the heart of our economy," said Michael J. Widmer, president of the Massachusetts Taxpayers Foundation..."This tax will be the most onerous tax on computer and software services in the country," Widmer said.
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Editorial: State tightens our belts instead of its own

Jul 14 2013

Lawrence Eagle Tribune

Lawmakers are also looking to gain about $160 million from a tax on certain computer services, billed by supporters as a “business to business tax” that will have no direct impact on consumers. Yet its full implications don’t seem to be widely understood. “State leaders could hardly have chosen a more perfect tax to undercut the future of the Massachusetts economy. This is the most sweeping computer and software services tax in the nation. It strikes at the heart of the state’s innovation economy and will stifle job creation for years to come,” said Michael Widmer of the Massachusetts Taxpayers Foundation.

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Our view: Take a second look at state tax package

Jul 11 2013

The Salem News

Lawmakers are also looking to gain about $160 million from a tax on certain computer services, billed by supporters as a “business to business tax” that will have no direct impact on consumers. Yet its full implications don’t seem to be widely understood.
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Editorial: Doesn’t compute Massachusetts software tax a terrible idea

Jul 8 2013

The Worcester Telegram

Given the broad wording of the legislation, no one really knows what services would be subject to the new tax, or how many jobs it might destroy. 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.
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Editorial: Tech tax proposal would stifle economy

Jul 7 2013

The Republican

The foundation is urging the Legislature “to pursue legislative alternatives to constrain the computer and software services tax in a way the minimizes potential damage while raising the $161 million that is anticipated in the transportation finance bill.” We think that’s a request that is more than fair. Massachusetts can’t afford to put any brakes on new job-creating industries in this increasingly competitive world.
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OUR VIEW: Transportation financing policy should be in the open

Jul 6 2013

Fall River Herald News

What’s worse is that the tech tax would hit the sectors most important to the state’s economic development. Computer software services are heavily purchased by firms involved in research, health care, information technology and retail. It makes no sense to put a new tax on services, many provided by Massachusetts firms, that fuel the productivity improvements at the heart of a technology-based economy. Besides, what does software development services have to do with transportation?

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Editorial: Too little, too late on software tax

Jul 5 2013

Boston Business Journal

“The tax is so broad that it will affect virtually all industries,” Massachusetts Taxpayers Foundation’s Mike Widmer wrote last week. Well, yes. That’s because all industries hire consultants to deploy software on their sites, often with a large price tag. Tack 6.25 percent to the cost and who’s the worse for wear? Well, it sucks investment capital out of companies that are spending money to innovate. The Legislature crafted a relatively modest tax plan that calls for $600 million in increases in the new fiscal year — a rebuttal to the governor’s gargantuan taxapalooza. But a third of the new revenue derives from the innovation economy. In targeting software design for funds, they’re shooting Massachusetts in the foot.
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Software, design tax plan for Mass. draws fire

Jul 5 2013

By Mike Farrell, The Boston Globe

The Massachusetts Taxpayers Foundation wants state legislators to revise a proposed broad new tax on computer design and software services that Governor Deval Patrick would use to pay for transportation improvements. The business group said it will ask lawmakers to limit the types of computer and software services that would be subject to the state’s 6.25 percent sales tax.
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Editorial: Put the brakes on transportation ‘tech tax’

Jun 30 2013

MetroWest Daily News

What’s worse is that the tech tax would hit the sectors most important to the state’s economic development. Computer software services are heavily purchased by firms involved in research, health care, information technology and retail. It makes no sense to put a new tax on services, many provided by Massachusetts firms, that fuel the productivity improvements at the heart of a technology-based economy. Besides, what does software development services have to do with transportation?
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Editorial: Gov stamps his foot

Jun 28 2013

The Boston Herald

But it has become even more problematic because there is growing concern over its draftsmanship and how much would really be brought in by the tax. Lawmakers insist it will cost business about $161 million a year. That’s a far more serious issue than the governor’s little tiff over Turnpike tolls and one that should merit some language to limit that tax burden.
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