Republican Legislators Successfully Advocate for Repeal of Technology Tax

Yesterday, Republican legislators from the House of Representatives were successful in their quest to repeal the Democrat-approved job killing computer services tax, all while refraining from implementing any new revenue measure.

“The repeal of the tax on the technology industry is the direct result of the hard-work, dedication and resilience of Beacon Hill Republicans, as well as our partnership with industry professionals,” said House Minority Leader Bradley H. Jones, Jr. (R-North Reading). “Today’s vote to eliminate the technology tax further illustrates the ill-effects of the Democrats’ tax-then-ask approach to revenue. House Republicans will continue to vehemently oppose any attempt to suppress economic growth, and we will remain steadfast in our support of the taxpayers and small businesses of the Commonwealth.”

The repeal of the tax, widely regarded as the largest and broadest tax on computer and software services in the nation, marks the culmination of a six-month long endeavor by legislative Republicans to eliminate the unprecedented revenue measure.

Having recognized the deleterious effect of a tax on the technology industry, contained within a $500 million transportation plan, House Republicans not only formally requested a public hearing for the massive tax hike, but also went as far as to offer an alternative transportation finance plan – free from any statewide tax increase. While both initiatives were defeated at the hands of House Democrats, the Republican Caucus refused to be cast aside in their tenacious opposition to a tax on the high-tech industry.

Knowing the importance of engaging those individuals adversely affected by this ill-conceived approach to revenue, the House Republican Caucus embarked on a statewide, weeklong series of roundtable discussions with technology industry professionals, and Chambers of Commerce. The 2013 GOP Technology Tax Business Roundtables gave local businesses and Chambers of Commerce, which would have been severely impacted by this reckless tax, the chance to discuss the detrimental effects and ways to reverse what would surely have suppressed future economic growth within the technology industry and the Commonwealth.

As the majority party continued to defend their careless vote to increase taxes on one of the state’s most vital economic forces, and in some cases alter their stances, Republicans returned to the drawing board and unveiled legislation to repeal the Democrat-approved job-killing computer services tax. The legislative measure, which contained the same language as a ballot question approved by Attorney General Martha Coakley, was just the latest effort the minority party put forth to eliminate this unprecedented tax.

Having passed the House of Representatives, the legislation will now move to the State Senate for consideration.

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