Maryland repeals tech tax; improves chances of local tech industry

This weekend, Maryland politics have focused on the decision of the state legislature to repeal the ‘Tech Tax’ (a special 6% tax on computer services). The general consensus seems to be that, yes, taxing tech services, was a bad idea. It resulted in an uproar from computer experts, as well as extensive lobbying for the repeal.

My standing question is why a government — whether state, federal or otherwise — would essentially discourage a certain category of business in their area? Singling out one industry for a special tax just flat out doesn’t make sense to me. It’s in the state of Maryland’s best interest to encourage business, especially in one of the fastest growing sectors. I can understand offering incentives for certain industries; I don’t necessarily support it, but I understand the need to bring more jobs into an area. I can’t see, however, how a state can ever afford to essentially offer an incentive for companies to leave the state.

Sure, states need money to run. But there’s far less of a public outcry if a government chooses to raise taxes a small amount across the board, rather than forcing only a small group of people and businesses to take on a significant tax burden.