The Massachusetts Technology Tax – Not such a good idea after all?

Massachusetts Governor Deval Patrick released a statement on Tuesday saying he no longer supports a controversial new tax on computer software and computer services that has sparked major fury on the bustling and growing technology community of the bay state over the past several weeks.

Since the tax was passed by state Legislature, there has been much confusion and panic amongst the tech community of what the tax even specifically applied to, and has since created repeal, and threats of unanimous relocations of technology companies big and small, and jobs of all shapes and sizes if the tax was not reconsidered by the Governor’s office.

Governor Patrick’s office estimated over $160 million in revenue from the new tax that was designed to work in tandem with other tax increase proposals to help aid in the funding of the states aging and deteriorating infrastructure, and public transportation systems.

Massachusetts has been globally recognized as a leader of technology companies, and some even call it “The Silicon Valley of the East”. So, for its own Government to place a burden almost an entire industry, has left many upset, and looking towards greener pastures, which can cause more economic harm than good, as well as even reduce state tax revenue with the threat of corporate relocation.

Governor Patrick’s office is now in the process of creating a new proposal to Beacon Hill to make up for the lost revenue for the “Tech Tax” repeal., as well as many other Massachusetts based technology companies has been working with several advocacies and organizations, such as the Massachusetts Taxpayers Foundation to put an end to the tax.