I just found out about Maryland’s recently-enacted Computer Services tax, as my employer is based in Maryland. Maryland’s new law, which takes effect July 1st, will tax computer services at 6%. Connecticut, the only state to successfully tax computer services, does so at 1%.
Wow, if you’re looking for a good way to drive high-paying jobs right off the continent this is it. They should call it the “Offshoring Technology Law.” Software companies aren’t anchored to any particular place. There are no factories or other infrastructure to keep them in one place. Slap a 6% tax on knowledge workers and you’ll soon miss those fat income tax returns as those jobs flee to India or Eastern Europe.
Most politicians should just steer clear of technology issues.
Maybe they will move to North Carolina 🙂
I was soooo disappointed that the link didn’t “Rick Roll” me….
One lesson that politicians haven’t learned yet is that tax revenue goes UP when you lower taxes and goes DOWN when you raise taxes…but then again tax rates aren’t really set to raise revenue but that’s a whole different discussion. 🙂
scootdawg: That would be too obvious.
Here’s a hint: if you see a “Music” category on a post that seems to have nothing to do with music, you’re about to get Rick Rolled. 🙂
Actually, it goes both ways according to the Laffer curve. The revenues go up until you reach a certain point and then they go down.
http://www.investopedia.com/terms/l/laffercurve.asp
well ralph, that’s true….if you apply a 0% tax rate, I guess revenues are gonna drop pretty dramatically, huh? 😉
My point is that our leaders know that raising tax rates aren’t really about raising revenue but redistributing wealth. Its a class envy, bias that plays well to the masses. If they were really interested in raising revenue, they would adjust according to the Laffer curve. At least try to keep close, no?
Uh, Scott. You’re not really serious, are you?
Taxes are about all kinds of things. The first taxes in this country were against whiskey and about raising revenue and about establishing that the government really could raise taxes and enforce its laws…
My worry is that we think they are about a single principle and that principle is so important that it justifies any amount of inequity. When you hear someone say anything in complex government is one simple phrase, better check your rear view mirror and the contents of our pockets. 🙂
yes, Mark I am…all the candidates talk about benefits for the poor and increasing taxes on the rich. That seems like redistribution to me…
So, decreasing taxes on the rich and increasing the share of taxes that the middle class has to bear isn’t redistribution.