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Massachusetts Introduces Software Service Tax

masslive.com

71–80 of 85 posts

Re: Massachusetts Introduces Software Service Tax

#71
post #65

Earlier quoted context omitted.

NH has water (right?), an electric grid (no idea whether it's reliable, all I know for sure is that they have a nuclear power plant) and based on what I was told, the best snow removal in the country.

Since when do we let facts get in the way of snark?

No facts were harmed in the making of this snark.

Sure, not everywhere in NH is like that. But one can't spread libertarianism by proposing to dismantle the fire department.

Re: Massachusetts Introduces Software Service Tax

#72
post #46

Earlier quoted context omitted.

@nknighthb, I can't seem to reply to your last comment, but I'm curious... why are sales taxes "regressive evils?" The more you consume, the more you pay (at least for physical products). This makes sure everyone has skin in the game. I would argue that an income tax is a moral "evil", but realize we're way past ever abolishing it. There's no inherent reason a governing power should ever know how much income you prod…

HN delays reply links based on how deeply nested replies are. Though you can find your way around that... A regressive tax has a specific definition. It's a tax whose effect is to take a greater percentage of income the poorer you are. Sales taxes, like all flat taxes, are inherently regressive. If I make $10,000/year, all of it is getting spent, which means that less any exemptions (which vary by state, but may incl…

Governments usually try to work around that, including the staple food exception you mentioned, but that makes the whole system a mess of exceptions and exceptions-to-exceptions.

Re: Massachusetts Introduces Software Service Tax

#73

MA has so many make-work jobs who do absolutely nothing at least they could leave those of us trying to do something alone. I was talking to a guy who used to be a product designer for Brookstone, Polaroid and GM. He has an idea to create 100 simple products all manufactured within 100 miles of Boston. http://www.onehundred.co He thought he would reach out to some MA economic development organization and let them kno…

Well, I'd assume "Executive Assistant to the Deputy Director" is the secretary for the no. 2 at the MTC, which doesn't seem all that unreasonable. The "Program Assistant to the Director" is probably a project manager. The "Director of Cluster Development" is probably in charge of whoever is developing clusters, whatever those are. The titles are slightly overblown, but little more than I'd expect at any government de…

What do you think the broadband community outreach coordinator does?

Re: Massachusetts Introduces Software Service Tax

#74

MA has so many make-work jobs who do absolutely nothing at least they could leave those of us trying to do something alone. I was talking to a guy who used to be a product designer for Brookstone, Polaroid and GM. He has an idea to create 100 simple products all manufactured within 100 miles of Boston. http://www.onehundred.co He thought he would reach out to some MA economic development organization and let them kno…

Well, I'd assume "Executive Assistant to the Deputy Director" is the secretary for the no. 2 at the MTC, which doesn't seem all that unreasonable. The "Program Assistant to the Director" is probably a project manager. The "Director of Cluster Development" is probably in charge of whoever is developing clusters, whatever those are. The titles are slightly overblown, but little more than I'd expect at any government de…

It sounds like you aren't familiar with the depths of corruption in Massachusetts state government. Let's put it this way: the last three previous Speakers of the House are all Federal felons.

Re: Massachusetts Introduces Software Service Tax

#75

Why do all the American states have different taxes? Here in Australia we have 10% GST (Goods and services tax). So wherever you're from in the country you can expect both goods and services to be priced the same. So much simpler for the average consumer!

> Why do all the American states have different taxes?

So that when you get fed up with sky-high taxes for no services from places like Massachusetts or California, you can move to Texas or Florida. http://en.wikipedia.org/wiki/Laboratories_of_democracy

Re: Massachusetts Introduces Software Service Tax

#76
post #62
post #22

I'll say this as the owner of a small consultancy that will (probably) be affected by the new law: I have far less objection to the tax itself than the specifics of how it's implemented. In any case, it might first be worthwhile to read the actual language in question [1]. So with that in mind, the implementation problems include: 1) There was very little notice given to the affected parties - the bill passed July 24…

It seems like they should extend that to all industries and not just single out software development. Why not say that any lawyer who just modifies boilerplate legal documents is now subject to a tax? That would seem to be in the same spirit.

However, it's not likely that they'll ever put a tax on lawyers, since most members of the state legislature are probably lawyers themselves.

Re: Massachusetts Introduces Software Service Tax

#77
post #58

This has disturbing implications for the rest of the country. What happens if the developers of Massachusetts just roll over and give the state hundreds of millions of dollars of extra revenue? What message does that send to other states?

Your profile indicates that you live in NY. That state already charges a sales tax on the pre-written portion of software-services sales. So I'm not sure on what basis you suggest people should move out of MA in protest at such a tax. Are you planning to move out of NY to protest it?

Did I say that people should move out of MA to protest the tax? I'm pretty sure I didn't say that

Re: Massachusetts Introduces Software Service Tax

#78

MA has so many make-work jobs who do absolutely nothing at least they could leave those of us trying to do something alone. I was talking to a guy who used to be a product designer for Brookstone, Polaroid and GM. He has an idea to create 100 simple products all manufactured within 100 miles of Boston. http://www.onehundred.co He thought he would reach out to some MA economic development organization and let them kno…

Don't even get me started! For other examples of how the MA state government loves to put their money anywhere BUT their mouth, come check out the number of "Additional Vice Provost" positions in the state university (UMass) system.

They laid off people who were doing actual work to make room for people whose only job responsibility is to collect a paycheck.

It amazes me no end!

Re: Massachusetts Introduces Software Service Tax

#80
post #11
post #2

What a mess... So if I buy a SaaS product that requires some config on the providers end, is that taxable too?

As of a few months ago, MA actually charges tax on SaaS sold to customers in MA - that's been pretty clear. (I got notices from a few of my SaaS providers and everything).

Texas also does as of a few years ago. In general services aren't taxed in Texas, but 17 classes of services are defined as taxable [1], ranging from movie-theater tickets to mobile-phone service to pest-control. One of those is data-processing services:

Examples of data processing include check preparation; accounts payable or receivable preparation; web hosting, web site creation and maintenance; data storage, including offsite backup of electronic files; conversion of data from one type of medium to another (i.e. converting paper documents or videotapes to digital files); and the performance of a totalisator service with the use of computational equipment required by the Texas Racing Act. Data processing services providers include sellers of software as a service and application service providers.

[1] http://www.window.state.tx.us/taxinfo/taxpubs/tx96_259.pdf

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