The state Senate is poised today to follow the lead of the House, which voted yesterday to repeal the so-called tech tax in a finger-pointing session that left business leaders concerned that lawmakers just don't understand the technology sector.
"There were some surprising words out there that continue to indicate that (legislators) don't fully understand our industry or even understand it at all, so we need to talk to them," said Andrew Mazzarella of the SPARK Coalition, a group of tech businesses that organized to push for repeal of the tech tax.
The 6.25 percent tax on software services was part of the $500 million transportation financing bill passed in July and it caused an almost immediate outcry from the state's tech industry, which said it would drive away business. Gov. Deval Patrick and House and Senate leaders reversed course earlier this month, agreeing to pursue a repeal of the tax many lawmakers had voted for.
"We got what we needed," said Joe Baz, president of the SPARK Coalition, adding the group will make sure lawmakers have a better sense of what matters to the tech industry. "We're going to be trying to build some more relations with some of the folks that are suggesting there needs to be reform in the process and see how we can continue to protect the interests of small business."
Lawmakers yesterday traded barbs on the House floor, with Democrats calling Republicans "revisionist" and Assistant Minority Leader George Peterson (R-Grafton) telling Democrats, "We told you so."
Boston mayoral candidate and Dorchester state Rep. Martin J. Walsh backed the repeal of the tech tax he initially voted for, dismissing any suggestion the flip-flop would be an issue in the race.
"When the tech tax was originally voted on, the intent of the tax wasn't what it turned out to be. There was a flaw in the legislation in the way it was written," Walsh said.
House Minority Leader Bradley Jones (R-Winthrop) called the tech tax "a stupid thing, and told his colleagues, "Thank you for finally seeing the light of day on this issue."
Gov. Deval Patrick, asked if he'd veto the repeal if it didn't have an appropriate "plug" for the $161 million in lost revenue, said "that's not where I am."
"The Legislature, the leaders and I have talked about the hole that's left in the budget," Patrick said. "I can't deal with it without them, so I'm waiting to see what they do. And whether they do it all today or do it over the next several months remains to be seen."
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