Gillmor says technology is key

Columnist calls idea to raise sales tax ‘regressive’

The impact of the technology sector on the future economy “is going to be profound,” but it could be the emerging economies of China and India that reap many of those benefits.

Julie Howard
The Idaho Statesman

That was one of the messages delivered to Idaho legislators and business leaders Wednesday at an annual legislative luncheon presented by the Boise Metro Chamber of Commerce and The Idaho Statesman.

Dan Gillmor, a syndicated columnist who covers technology for the San Jose Mercury News, did a quick scan of the troubled industry for his audience, moving from lowered revenues and profits that “went through the floor” to an optimism that technology growth will return with a vengeance.

Gillmor, whose column appears Thursdays in The Idaho Statesman, also warned legislators to stand firm against lobbying efforts by telecommunications firms who don´t want to share their lines with competitors. Giving in to primary carriers who own the infrastructure and don´t want to share access would cast a pall on competition, he said.

“I hope the people here do whatever it takes to promote competition on local lines,” he said.

He forecasted the end of land lines in the proliferation of wireless usage, adding “once we´re free of telephone companies — and this will happen — bandwidth will improve.”

While his address was wide-ranging, Gillmor turned his eye on Idaho and discouraged increasing the sales tax, calling Gov. Dirk Kempthorne´s proposal for an increase in the sales tax from 5 percent to 6.5 percent “regressive.” At the same time, he praised the governor´s “idea of protecting education.”

Gillmor also encouraged Idahoans to embrace cultural diversity.

“We are in a county with no majority population,” said Gillmor, referring to Santa Clara County, the seat of California´s Silicon Valley. “There´s a great advantage in attracting smart, energetic people of other cultures.”

Gillmor´s talk was lauded by many of those in the tech community who attended Wednesday´s luncheon, saying they were pleased legislators heard the message of technology´s importance.

“This is a rich, diverse part of the economy that needs their attention,” said Holmes Lundt, president and CEO of Portsmith, a Boise company that focuses on connectivity options for mobile computer users.

Nurturing the industry is important, said Steve Simpson, CEO and president of Boise´s Extended Systems, a wireless software company.

“The Legislature has a huge challenge,” Simpson said. “We need to make sure we´re sustaining technology, which has been a growth engine for the state.”

The Boise Metro Chamber of Commerce also took advantage of being before legislators by presenting all attendees with their agenda for 2003. That agenda included:

• Maintaining essential education programs.

• Supporting tax simplification to keep administrative costs down, and accelerating depreciation on qualifying new property.

• Preserving corporate income tax rate reduction.

• Keeping the investment tax credit as an economic development tool.

• Freezing unemployment insurance tax rates until a comprehensive analysis of the system is completed.

• Supporting a health care program for small business.

To offer story ideas or comments, contact Julie Howard
[email protected] or 373-6618

http://www.idahostatesman.com/Business/story.asp?ID=30099