Down with Pennsylvania’s tech tax!

In an informal partnership with Philadelphia magazine‘s new Philly Post daily news blog, Technically Philly will be offering our insight on Philadelphia technology to a broader audience of tech-interested individuals every Tuesday. As is true of so much of our effort, this is yet another opportunity to voice the triumphs and concerns of the community to a broader audience in the city and beyond.
Pennsylvania lawmakers sounded a warning bell last week, predicting a $1 billion deficit if taxes aren’t increased or significant spending cuts executed. And for the first time in close to two decades, computer services professionals are being looked to to help bridge the gap.
Governor Rendell’s proposed 2011 budget includes plans to broaden the tax base to 74 goods and services not currently taxable under the state sales tax, including computing and information technology work.
Call it history repeating itself.
In 1991, with an expected hole in the budget, Governor Casey looked to extend the sales tax to additional professional services, including computer services. Paul J. Mathison, who has analyzed state budgets and their impact on technology for close to two decades, remembers it well.
Read more at Philadelphia magazine’s Philly Post.