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January 8, 2008

Members in the News: Computer Services Sales Tax

Yesterday, two Maryland Chamber members were featured in news reports regarding their reactions to the computer services sales tax passed during the 2007 special session and set to take effect on July 1.

The Washington Post ran this op-ed by Tom Loveland, CEO of Mind Over Machines and co-founder of the Maryland Computer Services Association. In the op-ed, Loveland said:

“This new tax, which takes effect in July, will put many Maryland businesses at a severe disadvantage. Innovative technology fuels business growth and job creation, but it can be expensive and risky. So it’s often the last thing a business invests in, using the final dollars of its technology budget, if any remain. But now those final dollars will be diverted to the tax, significantly curbing investment in innovation and dampening job creation. Small businesses — the least able to sidestep the tax and a key generator of new jobs — will be particularly affected.” Read the full article here.

WBAL Radio spoke with Andy Stern, CEO of USi. Stern said that his company is committed to keeping its headquarters in Maryland, but that expansion originally planned for its Annapolis headquarters would likely be shifted to one of its other facilities.

“This tax is going to hurt our business. It’s going to hurt other technology businesses. It’s going to take a piece of the economy that’s growing in Maryland, like USi, and it is going to cause companies like ours to grow out of state, or move out.”

Read the full WBAL article and listen to audio clips here.

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