[Hidden-tech] IT services tax

[all at pinehurstpictures.com]

Jeff,
Very well said. 
Rikk

Pinehurst Pictures & Sound

-------- Original Message --------
Subject:: [Hidden-tech] IT services tax
From: Jeff Rutherford <jeff at jeffrutherford.com>
Date: Aug 8, 2013 11:07 AM
To:: hidden-discuss at lists.hidden-tech.net
CC: 

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I understand the need to organize and form organizations to oppose this tax. But, I would encourage everyone not to wait around for those organizations to form. If you oppose the tax, let your voices be heard NOW - contact your elected representatives, write letters to local media, discuss and post about this in social media. #repealMAitservicetax

Personally, here's my reasons for vehemently opposing this bill:

This tax was levied on software and IT services as part of a transportation bill. In fact, there are many IT and software-related companies in Massachusetts whose employees work from home on a regular basis - or the companies are virtual companies where every employee works from home. IT services and software companies should not bear the responsibility for funding a transportation infrastructure that their companies often don't use - especially when compared with other industries within the state.

This bill was clearly written by someone who does not understand the information economy. By doing that, it makes the Massachusetts state government frankly look like a bunch of bumbling idiots. If the legislature wanted to tax IT and software services in Massachusetts, why didn't they have the decency to hire a law firm familiar with the industry to write the legislation? The fact that the legislature didn't take that step clearly proves that the Massachusetts legislature doesn't respect or care much about an industry that is vitally important to the future of the state economy.

The Massachusetts legislature and governmental organizations need to decide - do they want Massachusetts to be competitive in the information economy? By passing this bill, the answer is clearly NO. Venture capital remains a huge driver of investment in IT startups. The Massachusetts legislature waved a huge red flag for VCs when they passed this bill. That flag currently reads - DO NOT INVEST IN MASSACHUSETTS' DIGITAL START UPS - spend your money in Silicon Valley or Chicago or New York City. Do not invest in Massachusetts, because the state is being administered by legislators who are going to pass regulations hampering IT businesses - regulations written by people who don't understand (or care to understand) your industry. 

On a personal level, I'm flabbergasted by this tax - and frankly, I work in PR, and a lot of the bill won't impact me. But, my clients are all digital startups - and it will certainly impact them. Sure, you can make lots of arguments about the revival of small manufacturing and lots of other industries. However, the impact of the IT and information economy is only going to grow. IT and software will eventually impact almost every single industry - agriculture, healthcare, manufacturing, etc. The cities and states that create hospitable environments for IT and software companies will thrive in the future - the states who tax an IT industry it doesn't understand will not thrive.

If Massachusetts wants its economy to grow, and the state's economic developments are sincere, it needs to do everything it can to increase the growth of the IT industry and IT investments within the state. This tax is the wrong idea at the wrong time.



Jeff

Jeff Rutherford
jeff at jeffrutherford.com
413-475-0087

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