5 Myths Circulated By Memos In Massachusetts Legislature About Tech Tax


Myth 1: The Tax Mostly Affects Larger Corporations

When explaining what computer system design services were, the fact sheet said that some examples of industry leaders affected by the change would be IBM, Hewlett-Packard and Oracle.

Michael Widmer, president of the Massachusetts Taxpayers Foundation, an organization closely following the tax fallout, disagreed, saying that small businesses that cannot absorb the added costs would be most affected by the tax.

"They totally neglected to discuss the impact on small businesses," Widmer said. "Small businesses totally got slammed with this."

The effect on the Massachusetts economy as a whole, Widmer said, is that it is much easier for smaller companies to pick up and move across state borders where there is no tax.