1. United States
2. Calif.
3. Letter

I respectfully urge you to reconsider California’s new tax on digital software and Software-as-a-Service (SaaS). California is home to the nation’s leading software industry, and software has become an essential input for nearly every business—from healthcare and manufacturing to education, logistics, retail, and small businesses. Taxing software increases operating costs throughout the economy. Economic research indicates that taxes on business inputs are often passed through, at least in part, to customers through higher prices, lower investment, or slower wage growth. I am concerned this policy will reduce California’s competitiveness while contributing to higher costs for consumers and employers. California’s budget challenges should be addressed by improving government efficiency rather than expanding taxes on productive industries. I encourage the Legislature to prioritize rigorous oversight of state programs, eliminate fraud, waste, and ineffective spending, strengthen performance audits, and ensure taxpayer dollars are delivering measurable results before asking families and businesses to pay more. California’s technology sector has long been an engine of innovation, investment, and high-quality jobs. We should be encouraging its continued growth—not increasing the cost of doing business in our state. I respectfully ask you to support policies that promote fiscal discipline, economic growth, and affordability by opposing this tax.