Massachusetts Enacts 6.25% Sales Tax On "Prewritten" Software Consulting
First time accepted submitter marshallr writes "Technical Information Release TIR 13-10 becomes effective in Massachusetts on July 31st, 2013. It requires software consultants to collect a 6.25% sales tax from their clients if they perform 'computer system design services and the modification, integration, enhancement, installation or configuration of standardized software.' TIR 13-10 was published to mass.gov on July 25th, 2013 to provide the public a few working days to review the release and make comments."
Six days from the announcement of a new tax to being required to collect it? Really? How many businesses can change their processes that quickly?
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It also applies to Open Source software. And, what if you're not a reseller -- "you buy Windows, and I'll install and configure it".
Sadly, I'm just going to assume there will be all sorts of problems here -- because most of the time when lawmakers try to pass laws relating to technology, they fail miserably in their understanding of said technology and make a bigger mess of things.
Lost at C:>. Found at C.
The problem is that in the U.S. is that your probably already paying close to 8% sales tax (in my home town 15% on entertainment and liquor) and we don't get things like universal healthcare. Instead we get NSA spying and TARP (welfare for the rich).
I truly don't have trouble paying taxes, however, he the U.S. sorrily lacks real statesmen that care about the country and are good stewards of our tax money. That's why so many people here demand lower taxes without any thought about the impact of things like an underfunded education system.
While I understand the thought behind a consumer tax (stupid people can't calculate sales tax so they don't consider it part of the cost). Ultimately any consumer tax paid by every person regardless of where you place the tax in the system.. So why not be honest and fair about it and simply use income tax?
If they need more tax money why not keep things simple and increase the income tax?
Seriously? How are you going to hide a tax hike if you keep it open and honest?
Quo usque tandem abutere, Nimbus, patientia nostra?
I think a prefer the opposite. Abolish the income tax and make a standard sales tax across the board. Plan the shift over several years in order to decrease the immediate impact of the switch.
Companies never pay taxes. They shift that burder to the customer through increased prices. Placing the taxes directly on the end user makes the tax system more transparent.
California's population has been rising steadily for decades, and has increased by about 300,000 last year. Maryland and Massachusetts similarly have increasing populations.
This is not people and businesses fleeing by the millions.
That results in the poor paying proportionately more taxes than anyone else since they use almost all of their money to purchase necessities.
Developers: We can use your help.
And have you paid your property taxes yet?
The government would actually be the best suited to pensions since they can build up enough of a buffer over time that they should effectively be immune to fluctuations in the market and could eventually hit a point where they wouldn't even need to pay in to the pension accounts again. In short, bad fiscal management is the problem, no pensions themselves.
Problem is, Detroit's government did run those pension plans... they had a nasty habit of pilfering them to fund city projects.
Quo usque tandem abutere, Nimbus, patientia nostra?