CompTIA Hails Maryland Senate Repeal of Tech Tax, Urges House of Delegates to Follow Suit.

WASHINGTON -- CompTIA congratulates the Maryland State Senate for helping to keep the "Free State" more so. With yesterday's action to repeal its 6% tax on computer services, the repeal bill now moves to the House of Delegates, whom we strongly urge to follow suit.

"The tax appeared in the stealth of night, but its ill-effects would have been seen and felt by all Marylanders," noted Roger Cochetti, Group Director of U.S. Public Policy for the Computing Technology Industry Association (CompTIA). "Small companies - IT and non-IT - would have been especially hard hit."

The so-called "tech tax" has a broad, pernicious effect. Added Cochetti, "6% may not seem like a lot, but for a small business on thin margins, that means less resources to create new jobs, or less investment in productivity-enhancing IT, stunting competitiveness. Moreover, the compliance costs add major burdens to all, but particularly to small IT service providers who decide to locate in the 'Free State'.

"Maryland's economy, driven by small businesses and oiled by IT, can't afford this. The 6% tech-toll will likely cause companies struggling in these turbulent economic times to either move out of Maryland or further retrench, avoiding innovative IT solutions that would help them weather the storm. With thousands of similar decisions made across the state, its macro-effect would be devastating to Maryland's economic growth, now and in the future.

"The irony here, of course, is that Maryland prides itself on being a tech leader. Yet, as a statement of political will, the tax seems to say, 'IT isn't such a big thing'. Counterintuitive in the extreme, the wealth of Maryland lies not just in its abundant resources, but in its immense productivity and innovative spirit, which gets amped by IT.

"Yes - IT is a big thing. It's huge for Maryland, as well as the rest of the Nation. The tech tax belittles IT's immense, positive role in our economy.

"We congratulate the Senate's repeal and for downing the stealth, tech tax; and we ask that the House of Delegates do the same. Marylanders should remain free of this deleterious levy, especially in these challenging economic times."