As the owner of a small IT consulting firm, I was astonished to see Senator Miller's comments regarding the effort to repeal the new "Tech Tax" being imposed on firms such as mine.  I was especially surprised by the comment that he was "not of a mood to repeal the computer services tax," his argument being that you would rather see the money taken from IT firms than from "Blue Collar" workers, commonly referred to as "the little guy".  I found his comments a bit misguided. 

Typically, blue collar workers are described as "the little guy."  In the case of this new tax, I think that one needs a better definition of who the little guy is.  I may have two college degrees and do "white collar" work but let's compare how my small firm operates compared to a typical "blue collar" firm.  If I don't work I don't get paid (or eat) - just like blue collar if one is referring to self-employed blue collar individuals.      

I pay for all of my own benefits, including retirement, business and health insurance - many blue collar jobs are unionized and protected by strong lobbyists that ensure excellent benefits.  I am a firm of exactly ONE person, me.  How different am I from the "blue collar" worker that Miller seems to be defending?  Firms like mine are the ones who will be affected most by this tax.  We are the "little guy", whether you call us blue, white, green or whatever color that you want.

As an independent contractor, most of my work is through other large firms and ultimately for the Federal Government. So I will pose a question that I hope legislators will consider.  If I have to charge larger integrators 6% sales tax and they have no way of charging the US government that same 6%, what do you suppose they will do?  I am no genius, but if I were them, I would simply not use Maryland companies to do the work or I would pass the 6% on to the smaller firms like my own with the argument, "Joe from Virginia doesn't have to charge me 6% tax so I'll hire him."

The administrative nightmare is going to cost the state more than the $200 million (note sure how that number was determined) that they believe this tax will bring in revenue.  It is amazing that there is only one other state in the union that charges a similar tax (CT), and theirs is 1%.

This tax is ridiculous and, as a business owner and MBA, I just can't see who thought this was economically smart.  To tax one of (if not the) fastest growing and important industries like this is just asking for economic disaster for this state.  I suppose we'll wind up like NJ and other states where mass business exodus is common.  Don't people see how clear the writing on the wall is?  The exodus has already started with USi.

I sincerely urge everyone to support the repeal of this tax. It simply makes no economic sense. I guess the real question is, "Why would ANY technology company choose Maryland?"

Robert K. Jerome

Jerome Technology Solutions

rob@jerometechsolutions.com