re: Massachusetts Computer Services Tax Riles IT Industry
majenkins: You're right innovation doesn't just stop. But it does pack up and move elsewhere.
Back in the 70's and 80's, Connecticut had a booming high-tech industry that was was not only able to offer competitive jobs to all engineering and technology graduates, but also entice those from other states. In fact, CT was called the "High-Tech Corridor" between Boston and NY. Then in the late 80's they passed new legislation to control growth in high-tech with new taxation. What followed is a collapse of the high-tech industry as companies relocated to other states. To this date, CT has not recovered. It's a nice state, as long as your profession is NOT in high tech or in any way related to high tech.
Since engineering talent is a scarce resource, and at the top of the food chain, it is fragile and can affect so many others if critical mass cannot be maintained. A bill, just like the one proposed, can trigger major investors to move their R&D and IT centers to other states, and if R&D leaves, others follow. What executive would be against saving their company an additional 6.25% on R&D and IT costs? Doing business in MA already carries a high cost of living as well as high income, property, sales, and corporate taxes. Adding an additional burden could be the tipping point. I believe it is a too high a price to pay for covering the transportation defect.