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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Dinesh who wrote (59484)	3/12/2004 11:41:31 AM
From: Lizzie Tudor	Read Replies (4) \| Respond to of 64865

Well, all I have to go on is that little article from an indian paper. What it looks like to me is that California has a loophole they tried to exploit with Infosys, being able to tax on the whole business vs. just local business. I'm sure the rationale for the loophole was to try to skirt businesses setting up in Nevada and basically acting as California businesses, or something lightweight like that. Of course Infosys is a huge company selling to much more than California so it is improbable that CA will be successful with this. But here's the thing. Forget this situation, look at the intent of the legislature. I fully concur with their conclusion that California suffers dearly when our state is used as a "market", with all value add goods and services produced elsewhere, and sold here. We can't have this at a state or national level and that is whats happening, the US is turning into a giant B2B exchange with nothing produced here, only sold here. The immediate effects of what we have in California is that the state is broke due to huge shortfalls in income tax receipts. Long term is even more ominous. If laws like this result in less offshoring, which I think would be the case, then I'm all for it.