CompTIA Hails Repeal of Maryland's Tech Tax, Urges Other States to Avoid Imposition of Same

Business Wire, April 9, 2008

WASHINGTON -- The following statement may be attributed to Roger Cochetti, Group Director of U.S. Public Policy for the Computing Technology Industry Association (CompTIA):

"CompTIA congratulates the members of Maryland's State Legislature and Governor Martin O'Malley for repealing Maryland's 6% tech tax on computer services. The repeal represents a major win for economic common sense and equity. IT services drive the productivity and welfare of Maryland's businesses, workers and citizens, and to impose such an onerous burden on those services would have greatly stunted the ubiquity and use of those essential tools.

"With Maryland's repeal of the 6% tax, we hope this sends an important signal to other states that are grappling with similar issues. Namely, do not hold competitiveness, the elimination of the digital divide and other beneficial societal gains hostage to budgetary red ink. States seeking to balance their budgets on the backs of IT users will find they have in fact smothered the oxygen of economic and societal wellbeing. More specifically, taxes on computer services will inhibit the uptake of productivity-enhancing IT, nullifying anticipated revenue gains from such taxes. It's a classic 'killing the goose that lays the golden egg' scenario.

"Thankfully, the 'Free State' has freed itself from such a conundrum, which most assuredly would have altered the ability of Marylanders to thrive in the Information Age. We urge other states considering such taxes to remain free from these abhorrent levies, too."