To: calgal who wrote (157720 ) 6/7/2000 12:30:00 PM From: John Koligman Read Replies (1) | Respond to of 176387
And along the same lines, here's 'Dell's best friend', Intel's Andy Grove and his view on internet taxes... Intel Chairman Says He Favors Sales Tax on Internet Purchases By TED BRIDIS Staff Reporter of THE WALL STREET JOURNAL WASHINGTON -- Breaking with most of the technology industry, Intel Corp.'s chairman told a congressional committee that Internet sales don't deserve exemptions from taxes, and he expressed support for new federal Internet-privacy laws. Andrew Grove, at 63 years old, is considered an elder statesman in an industry flush with start-ups run by young executives. His remarks were so extraordinary they overshadowed the testimony moments later by Bill Gates, Microsoft Corp.'s chairman, who also appeared before the Joint Economic Committee. Mr. Grove is acutely aware that his support for new privacy legislation and for new authority to collect sales tax on Internet purchases puts him at odds with most of his colleagues on two of the biggest issues facing the industry. While he included those positions in a written statement for the committee, he didn't elaborate on them until he was asked to by Republican Sen. Ted Stevens, of Alaska. Mr. Grove said he was reluctant to speak about the issues because he "didn't want to be hit" by colleagues when they testified following him. But under questioning he maintained that a failure to achieve "tax neutrality" between offline purchases and Internet sales will contribute to national economic disparities. He also said that the technical difficulties of collecting taxes across different jurisdictions are "not insurmountable." At a round-table discussion later with The Wall Street Journal, Mr. Grove and chief executives from other technology companies waged a remarkably spirited debate over taxes and privacy. Jay Walker, Priceline.com founder, said it already collects taxes on airline tickets, cars and some grocery items that its customers can buy on the Web. "It's not like we live in a tax-free zone," Mr. Walker said. "Jay, that's not true," Mr. Grove responded, saying that people who buy books online generally don't pay the same taxes as those who buy from bookstores. John Warnock, head of Adobe Systems Inc., noted that traditional retailers use roads and resources of the tax jurisdiction where they are located. "The Internet company uses none of that, except for the transportation of the product to the customer," he said. Mr. Grove said during his congressional testimony and again afterward that he believes federal Internet-privacy laws are "inevitable" and preferable to a patchwork of privacy laws in 50 different states. But he also described his thoughts as "in a very quixotic early stage." Nevertheless, Mr. Grove offered a way of framing the debate, arguing that consumers' data should be recognized as their private property, the protection of which could not be guaranteed by industry self-regulation. "History shows that property rights have not been left to voluntary treatment," he said. Mr. Gates's visit to Capitol Hill comes the same week that a U.S. judge here is expected to order the breakup of Microsoft for violating antitrust laws. The congressional panel pointedly didn't ask Mr. Gates about the pending judgment, and he didn't volunteer any comments about it.