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O'Malley backs tech tax repeal

He calls $200 million computer levy unfair

General Assembly

March 14, 2008|By Gadi Dechter and Bradley Olson , SUN REPORTERS

Just weeks ago, he told an angry group of computer industry executives that he did not support a repeal of the technology tax.

"We are very appreciative of the governor's leadership on this issue," said Julie Coons, CEO of the Tech Council of Maryland. "Clearly, the voices of average businessmen and -women in the computer services industry has made an impact."

But Miller was decidedly lukewarm on O'Malley's high-earner levy, noting there could be intense opposition to it from Montgomery and other wealthy counties.

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"He's certainly entitled to his opinion, and we'll wait to see if a consensus develops in the House and Senate committees," Miller said. "I will not actively oppose it."

Busch, leader of the House of Delegates, said the computer services tax was born in the Senate, so it's up to senators to provide an alternative revenue source.

If the Senate passes an income tax increase, "the House will respond," Busch said, "quite possibly" endorsing the "millionaires' tax."

The tax is set to take effect in July. Comptroller Peter Franchot, a technology tax opponent, said his office is set to release draft regulations for the levy's implementation today.

gadi.dechter@baltsun.com bradley.olson@baltsun.com

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