03/12/2008
CONTACT: Ellen Valentino, 410-693-2226 or Jason Brewer, 202-406-4435
NFIB members urge lawmakers to repeal costly new tax on computer services
ANNAPOLIS, Md. -- Small business owners from across Maryland traveled to Annapolis with a simple message for lawmakers: Repeal the tech tax.
Members of Maryland's leading small business association, the National Federation of Independent Business, met with legislative leaders in both parties yesterday in an attempt to persuade officials to end the tax passed last year during the special session. The tax is expected to raise $220 million this year, and small business owners contend they will be paying the bulk of that sum.
"Small business owners have a real-world view on the impact this new tax will have on both their businesses and the economy as a whole," said Ellen Valentino, state director of NFIB/Maryland. "Based on early anecdotal evidence, it's clear that this tax will have a negative effect on small business owners and the Main Street economy."
Small business owners spoke about the impact the new tax will have on the business climate in Maryland.
"This tax will be bad for small business, bad for Maryland and must be repealed" said Jon-Mikel Bailey, president of Wood Street, Inc., a computer, Web and graphic design business located in Frederick. "It will have a chilling impact on my business and on those employers I do business with."
"I am a small business owner, my customers are small business owners," said Brian Usher, owner of DP Solutions in Columbia. "With an economy that's already on shaky ground, we cannot afford this 6 percent tax."
Because small employers are more likely to hire an outside consultant or vendor to provide tech support than larger companies who have tech support in-house, the tech tax will hit small employers disproportionally hard.
"Small employers create two out of every three net new jobs in the economy, and the tech tax will hit these entrepreneurs the hardest," Valentino said. "Repealing this tax will should be a top priority for those concerned about jobs and economic growth in Maryland."
