Business & Tech

Governor: Don't Raid Surplus to Replace Tech Tax

The stars seem aligned to repeal a controversial new tax on tech services. But what about the $161 million hole that will create in the state budget?

By Chris Helms

A controversial new tax on technology services appears to be headed for repeal, as political powers from the governor to House and Senate leaders want it gone.

But what to do about the estimated $161 million the new levy was expected to gin up? The Herald reports that legislative leaders are eyeing higher-than-expected tax revenues to fill the gap.

But Gov. Deval Patrick says that plan won't fly with him. He wouldn't say how he would bridge the gap, though.


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