[Hidden-tech] New IT services tax in Massachusetts - constituent communication

[Jeff Rutherford]

I agree with your assessment Jan, and I said as much in my reply back to
Stephen Kulik. I basically said it doesn't escape me that the legislature
decided to target an industry with very little political clout or
organization.

So Jan, what would you suggest to ratchet up the pressure - and as you said
- convince these legislators that many of the people who voted for them
last time will actively organize to defeat them in the next election. And,
you may disagree, but I think it is important to let these represetatntives
know - as applicable that these complaints are coming from people who did
vote for them. Otherewise, it's easy for them to dismiss these complaints
as some of the general noise these days in the media, etc. about right-wing
groups and constituents complaining about taxes.

I know I've said it before. But it still amazes me that the legislature
decided to target a bright spot in the state economy - the software and
digital industry. But, as you said, they targeted the group that they
thought would offer minimal resistance and no organized oppossition.

Jeff

On Monday, August 12, 2013, Jan Werner wrote:

> This is a classic constituent brush-off form letter.
>
> Note the statement:
>
> "As you know, the legislature scaled back governor Patrick's much more
> expansive tax proposal that he submitted in January.  Our intent was to
> craft something more limited and narrower in scope."
>
> It is clear that our fearless legislators, in a panic to raise at least
> some money to fund repairs to our crumbling infrastructure, looked to find
> a target that would cause the least amount of blowback at the polls in the
> next election.  Hey! How about geeks?
>
> I doubt we will see any reform unless representatives can be convinced
> that this particular tax could galvanize enough voters to jeopardize their
> re-election. That will take a lot more coordinated effort than I have seen
> so far.
>
> Jan Werner
> ______________
>
> Jeff Rutherford wrote:
>
>>     ** Be sure to fill out the survey/skills inventory in the member's
>> area.
>>     ** If you did, we all thank you.
>>
>>
>>
>>
>> Response from Rep. Stephen Kulik. I encourage everyone to contact state
>> legislators about this tax. They need to hear from a lot of people!
>>
>> Jeff Rutherford
>> 413-475-0087
>>
>> Begin forwarded message:
>>
>>  *From:* "Kulik, Stephen - Rep. (HOU)" <Stephen.Kulik at mahouse.gov
>>> <mailto:Stephen.Kulik at mahouse.gov>>
>>> *Date:* August 8, 2013, 10:05:40 PM EDT
>>> *To:* Jeff Rutherford <jeffrutherford at gmail.com
>>> <mailto:jeffrutherford at gmail.com>>
>>> *Subject:* *RE: New IT services tax in Massachusetts - constituent
>>> communication*
>>>
>>> Jeff,
>>>
>>> Thanks very much for sharing your concerns about this.  As you know,
>>> the legislature scaled back governor Patrick's much more expansive tax
>>> proposal that he submitted in January.  Our intent was to craft
>>> something more limited and narrower in scope.  I am aware of the
>>> concerns that have been raised by some in the business community in
>>> the past few weeks.  We are looking at these concerns very carefully,
>>> as we do disagree on some of the interpretations being talked about.
>>>  If we have created something that was not our intent, we have
>>> promised to revisit and change it.  It is certainly not our intent to
>>> raise $500 million as some claim, and to harm our tech sector. Our
>>> estimate is that this will raise about $160 million, and apply to a
>>> limited number of services.  This will be clarified in the coming
>>> weeks as DOR writes the regulations.  This is a work in progress, so
>>> stay tuned, and I appreciate your input.
>>>
>>> Best,
>>>
>>> Steve
>>>
>>> */Rep. Stephen Kulik/*
>>>
>>> /First Franklin District/
>>>
>>> Vice Chairman, House Ways & Means Committee
>>>
>>> State House, Room 238        1 Sugarloaf Street
>>>
>>> Boston, MA 02133                South Deerfield, MA 01373
>>>
>>> 617-722-2380                        413-665-7200
>>>
>>> Email: Stephen.Kulik at mahouse.gov <mailto:
>>> Rep.Stephenkulik at hou.state.ma.us>
>>>
>>> ------------------------------**------------------------------**
>>> ------------
>>> *From:* Jeff Rutherford [jeffrutherford at gmail.com
>>> <mailto:jeffrutherford at gmail.com>]
>>> *Sent:* Wednesday, August 07, 2013 3:12 PM
>>> *To:* Kulik, Stephen - Rep. (HOU)
>>> *Subject:* New IT services tax in Massachusetts - constituent
>>> communication
>>>
>>> Representative Kulik,
>>>
>>> I'm a resident of Conway, MA. I have worked in public relations for
>>> digital companies for the past 16 years. I'm writing you to strongly
>>> urge you to do everything within your power to stop the new IT
>>> services tax immediately. I don't think you or any of the other
>>> legislators realize the damage you've already caused.
>>>
>>> The IT and information economy is going to be the driver of the
>>> American economy for many years to come. By passing the new IT
>>> services tax, you've basically shut down Massachusetts from thriving
>>> as a state in the future. Venture capitalists are now re-considering
>>> their future investments in Massachusetts digital companies.
>>>
>>> I understand that you get a lot of passionate emails and contact from
>>> constituents. Again, I urge you to take this very, very seriously. I
>>> think because of the legislature's lack of understanding of the
>>> software business - you've just fired the first shot in crippling the
>>> state's IT economy. I'm not saying that out of hyperbole. I'm very
>>> serious. Damage has already been done, and the legislature HAS to
>>> repeal this tax immediately.
>>>
>>> Here are some additional points:
>>>
>>> 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. The bill is confusing, opaque, arcane, and
>>> clearly written by someone who doesn't understand the IT economy. 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. 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.
>>>
>>> Please take this seriously and repeal the IT services tax immediately.
>>>
>>> Sincerely,
>>>
>>>
>>> Jeff Rutherford
>>> PO Box 714
>>> Conway, MA 01341
>>> 413-475-0087
>>>
>>> jeffrutherford at gmail.com <mailto:jeffrutherford at gmail.com>
>>>
>>> G+ <https://plus.google.com/**117757910488771719712<https://plus.google.com/117757910488771719712>>
>>> I Twitter
>>> <https://twitter.com/**JeffRutherford<https://twitter.com/JeffRutherford>>
>>> I Blog
>>> <http://jeffrutherford.com/> I LinkedIn
>>> <http://www.linkedin.com/**profile/view?id=121886<http://www.linkedin.com/profile/view?id=121886>
>>> >
>>>
>>>
>>>
>>>
>>>
>>
>> ______________________________**_________________
>> Hidden-discuss mailing list - home page: http://www.hidden-tech.net
>> Hidden-discuss at lists.hidden-tech.net
>>
>> You are receiving this because you are on the Hidden-Tech Discussion list.
>> If you would like to change your list preferences, Go to the Members
>> page on the Hidden Tech Web site.
>> http://www.hidden-tech.net/**members <http://www.hidden-tech.net/members>
>>
>>

-- 
Jeff

Jeff Rutherford
413 475-0087
www.jeffrutherford.com
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://lists.hidden-tech.net/pipermail/hidden-discuss/attachments/20130812/5a2eee18/attachment-0001.html