Last night I started my testimony with, “You are probably wondering why CPAs are here against the 'digital download' tax.”
We were among hundreds of people in groups gathered to testify on the governor's budget bill, the Budget Reconciliation and Financing Act of 2012 (SB 152 / HB 87) in the Senate Budget and Taxation Committee. Most groups were there to oppose the numerous tax surprises contained in the bill.
The realtors and many others were there to oppose the reduction of the mortgage deduction. Then there were various groups against the increases of the income tax rate, additional sales taxes on tobacco products, and of course the digital download tax.
The hearing started at 1 p.m. with a lot of chaos as the hearing room was overflowing with people lining up to testify. We finshed up around 7 p.m. and the hearing was still going well into the night.
Here are our key points:
Then I just found out that even blogs are covered by this far-reaching legislation!
This just seems to be an idea whose time has not come. It was not well thought out and sets a very bad precedent in addition to ulimited compliance and collection challenges.
Here is some coverage from yesterday about our testimony: Hometown Annapolis
In other news: There is now talk about a general increase in state income tax of .25 percent to balance the budget. Other proposals are to broaden the sales tax base by taxing services. Yep — accounting, tax and consulting on the table as a major proposal in addition to the bill we will be fighting next week (HB 1051 Sales Tax on Services).
Buckle up, it will be a wild ride.
According to the BBJ, Maryland ranks 42nd in the nation for a favorable business climate. This kind of legislation can send us even further down the list.
For more background: