Massachusetts Set To Repeal Controversial IT Services Tax 122
Nerval's Lobster writes "Massachusetts lawmakers have agreed to repeal a six-week-old tax on computer services that generated such outrage that even the governor who proposed the tax in January now opposes it. The 6.25 percent sales tax on 'computer system design services' was proposed by Gov. Deval Patrick in January, but got little notice before it was slipped in mid-July into a $500 million supplementary funding bill meant to pay for improvements in the state's public transportation system. It was passed by the legislature with almost no debate, was signed into law by the governor with little public outrage, and went into effect – theoretically – July 31. IT businesses in the state used social media, business associations and angry letters to both lawmakers and local media to describe problems with the tax and show their opposition. Confusion over what qualifies as a 'computer system design service' and how to actually implement the tax – which was supposed to generate $161 million in revenue for the state – has been such a challenge to implement that the state has yet to collect a dime. The main logistical problem is figuring out what is covered and what isn't: data access, data processing and 'information services,' for example, are not taxed, which exempts most hosting, cloud, outsourcing and remote-access monitoring or security services. Democratic leaders announced Sept. 12 they would support repeal of the tax, which could be completed within weeks. 'It is now evident that the impact of the tax is broader than any of us ever anticipated or intended,' according to Mass. Senate President Therese Murray at a press conference Sept. 12."
How did they come up with estimate? (Score:4, Interesting)
I am curious how they can come up with estimate of how much the tax would generate, while also not having a clearly defined scope of what the tax would cover.
It'd be like someone saying they want to buy a car, and me saying it'll cost $20k. The term "car" covers a wide, wide range of possible options, and to give an ballpark figure would be nigh impossible with any accuracy unless I knew the specifics.
Re:Sounds about right... (Score:2, Interesting)
I am sorry, but you seem to be confusing "People who recognize their mistakes when said mistakes are pointed out to them" with "People who do research and learn about a subject before doing something." The later group learns to swim. The former figure out that swimming is not a natural skill after having been rescued by a life guard.