Repeal the computer tax

Technology companies and their trade groups have been mustering opposition to this pending burden and a showdown is scheduled today in Annapolis at hearings on several bills that would repeal the tax.

The legislature, more than halfway through its regular session, would be wise to overturn the tax and look for more ways to trim the costs of government and adjust other taxes before it adjourns.

Tax law changes that put Maryland companies at a competitive disadvantage need careful consideration and the computer services tax got little during last year’s special session. In Montgomery County, with its concentration of technology businesses, the additional tax could bring deeper problems if some companies make good on their threats to move away to neighboring states that don’t impose the tax. Can Maryland afford to lose jobs in a drooping economy?

While technology firms might appear to be an easy target, like any other business they face tremendous competitive pressures, the fallout from a slumping economy and higher costs.

Technology executives historically have not spent much time in the political arena fighting for their interests — they’ve been too busy building their companies, perfecting their science. The computer tax has pushed many into the spotlight and their message is more than rhetorical, their fervor unparalleled.

After economic development promoters have spent millions of dollars and thousands of hours touting Maryland as a warm, friendly place to build a technology business, a new tax on computer services is an unwelcome slap and would be counterproductive.