Massachusetts Introduces Software Service Tax • Hacker News Board

Re: Massachusetts Introduces Software Service Tax

#81

Post by xav0989 » Sat, Aug 03, 2013, 5:49 PM UTC

kgrin wrote: 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…

> If, however, I build a plugin to integrate Wordpress with your in-house SSO system - that's taxable.

Couldn't you argue that Wordpress is a framework for which you are building custom software?

Re: Massachusetts Introduces Software Service Tax

#82

Post by xav0989 » Sat, Aug 03, 2013, 5:53 PM UTC

SilasX wrote: post #33

tomheon wrote: post #4

According to a friend of mine who is relatively knowledgeable about this law, it was originally intended to target enterprise companies that were essentially selling software for next to nothing and then charging like mad for the "installation and configuration" to avoid sales tax. The wisdom of even that approach is debatable, but the actual language of the law is far from conveying that intent and is a total, indec…

>intended to target enterprise companies that were essentially selling software for next to nothing and then charging like mad for the "installation and configuration" to avoid sales tax. Such is what happens you impose high tax rates: people relabel transactions so they fall outside the tax. The. You have to issue new rules that try to make the relabeling not work. Then, the regulation books start to explode in leng…

A simpler approach would be to set up a lower tax rate on both sales and services.

Re: Massachusetts Introduces Software Service Tax

#83

Post by xav0989 » Sat, Aug 03, 2013, 6:08 PM UTC

mikegioia wrote: post #12

Pxtl wrote: post #9

Earlier quoted context omitted.

It seems ridiculous to charge only one profession for providing service, and it sounds like software people just have the worst lobbyists and the worst public image (plumbers are the iconic symbol of the "little guy" small business). Here in Ontario it's much simpler (but steeper) - the harmonized provincial/federal sales and service tax is 13% on everything. Sales, service, you don't have to give a crap. There's a s…

You guys pay 13% every time money exchanges hands? Does that include when you eat a restaurant, and if so, do you also tip the waiter?

With very little, very clearly defined exceptions, every time money exchanges hands to pay for a service or a good, tax is applied. We also tip. The country has a set of two minimum wages. One for jobs that do not make tips, and another one, slightly lower, for those expected to make tips.

Federal tax is 5% and provincial tax ranges from 0 to 10%, meaning you pay 5-15% depending on your location for each good or service rendered. Essential goods/services (defined by each province and the federal gov.) are not subject to the specific tax (e.g. in Quebec, books are considered essential goods by the province, but not by the federal, so you pay only 5% tax)

Re: Massachusetts Introduces Software Service Tax

#84

Post by readme » Sun, Aug 04, 2013, 1:12 PM UTC

mindslight wrote: post #23

asmithmd1 wrote: post #21

Earlier quoted context omitted.

NH has no sales tax and no state income tax. Of course you have much fewer "services" than MA. For example MA has a 19 member Commission on the Status of Women - which of course needs an executive director. And the executive director needs an assistant.

But don't forget that reduced services include things like town water (you'll need a well with a radon filtration system), a reliable electric grid (you'll need a generator), and timely snow removal (you'll want a vehicle that uses thrice the fuel). And the crux of the matter - as NH does absolutely nothing against federal taxes, you'll still be paying the majority of your present transaction costs.

I didn't know I'd need all those things for my water, but it's probably because I'm a renter. My rent is a paltry $685 per month (in Manchester) for a decent two bedroom. Compare to boston ($1500/mo)

The landlord removes my snow on time for free...

Never had an issue with the electricity.

But for a homeowner, yeah. I agree. Plus higher property tax.

Re: Massachusetts Introduces Software Service Tax

#85

Post by readme » Sun, Aug 04, 2013, 1:17 PM UTC

SamReidHughes wrote: post #61

mindslight wrote: post #23

Earlier quoted context omitted.

But don't forget that reduced services include things like town water (you'll need a well with a radon filtration system), a reliable electric grid (you'll need a generator), and timely snow removal (you'll want a vehicle that uses thrice the fuel). And the crux of the matter - as NH does absolutely nothing against federal taxes, you'll still be paying the majority of your present transaction costs.

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.

As an NH resident, I can confirm this. Also, vanity plates are inexpensive here.