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[Discuss] Mass Tax on Software Services



> From: discuss-bounces+blu=nedharvey.com at blu.org [mailto:discuss-
> bounces+blu=nedharvey.com at blu.org] On Behalf Of Joseph Guarino
> 
> What were they thinking?  As a political independent I'm not opposed to
> taxation but I am opposed to them being unfairly levied against
> industries we should be trying to encourage to stay in the state.

It's a use tax.  Amazon and rackspace are not located in MA, but the consumers in MA have to pay the tax.  So I don't really think it fairly or unfairly pushes tech jobs out of the state.  Unless your job happens to be a big consumer of such products.

They conceived it during the economic downswing.  At that time, I saw them cracking down hard, on things they had let slide for years.  To gain revenue.  I know at least 3 companies that got suddenly smacked with taxes and fines for using contractors instead of employees - Companies which were 100% above board.  But they have a good estimate how much it will cost you to defend your case, so they just fine you some amount below that level, knowing that most businesses will simply pay it off rather than fight it.  This happened with 2 out of the 3 companies I mentioned.  The 3rd one decided to contest the charges, and as predicted, got the fines dismissed at a cost higher than the fines themselves.



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