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Engler Angles For Tech; Democrats Look
At New Economy Future
Michigan Gov. John Engler, R, took his place as vice chairman of the National Governors' Association alongside new Chairman Maryland Gov. Parris Glendening, D, last week. The pair has committed technology as a high priority for the upcoming year after spending the weekend at the group's annual summer conference in State College, PA.
Engler spokesman John Truscott said Engler and Glendening will focus on technology in education, in particular.
"I think a lot of it will have to do with higher education, making sure that students have access," Truscott said. "The problem is, it's changing so fast, how do you keep up?"
NGA members have an uphill climb trying to standardize Internet taxes as lawmakers on the federal level continue to debate how to regulate and tax e-commerce transactions. Truscott said there are currently over 700 different tax codes throughout the country.
"How can we streamline it so it's not a mess for an online company" is one issue the group will look at this year, he said. "There's a push at the state level for Michigan to come up with a master plan on how we can synchronize our tax systems better."
Michigan's move dovetails with other states' efforts to take the responsibility of online taxes upon themselves, as many state lawmakers are in agreement that they do not want the federal government taking states' power of regulation away.
"We'd rather do it on a state level than have Congress force it on us," Truscott said. "There's a big disconnect between the government and the states."
Since Engler's swearing in as governor in 1991, Michigan's $1.8 billion deficit has turned into a $1.2 billion surplus. Record-low unemployment rates, greater financing of public schools, increases in charter school competitiveness and tax cuts are some of the state initiatives championed by Engler's administration.
Democrats Dig Deep Into Party Ideals
The Democratic Leadership Council's annual National Conversation conference in Baltimore last weekend hosted federal lawmakers, state delegates, lieutenant governors, information technology representatives and others as they brought the new economy to the forefront of party politics.
Baltimore Mayor Martin O'Malley, R, opened the forum, saying there's no escaping the new economy and that the party should embrace it.
"It's something in the minds of city officials to state halls to Congress," he said. "In the past, our party tended to cling to an old economy…we need to support policies that allow businesses to innovate in new areas. We need to remind ourselves at the DLC that the real strength in this economy is the people."
DLC President Al From stressed the importance of Democrats winning back control of Congress this election year and stressed that nationwide efforts by the New Democrats at the grassroots level must be made to identify the party with the new generation.
"New Democrats are the modernizers…of politics in the information age," he said. "We are the party of inclusion."
Maryland Lt. Gov. Kathleen Kennedy Townsend, D, cited education priorities as 'must-haves' as the party considers how to integrate technology into every aspect of the economy and peoples' lives.
"Our aim now is to make certain that the economic breakthroughs not only continue, but in turn engender the seeds for longer-term, broader and still faster growth," she said. "The key, of course, lies in harnessing the explosive power of technology."
President Clinton was scheduled to speak at the conference, but had to cancel due to ongoing peace talks at Camp David between Israeli and Palestinian officials. Vice President Al Gore was the closing speaker on Saturday. He focused on the importance of education and fiscal responsibility.
Ballmer, Barnes Stop To Chat
Georgia Gov. Roy Barnes, D, took time to chat with Microsoft's Steve Ballmer when the software giant executive was in town for a Fusion 2000 technology conference in Atlanta Friday. A Barnes spokeswoman said the two have met in the past, and "they used the opportunity to get together again," calling the meeting "just a courtesy visit." Microsoft spokesman Rick Miller said "they had a great meeting," adding that the pair talked about education and technology issues — two areas both are concerned with. They have a "good rapport," Miller added.
In related news, Barnes swore in the 12 members of the Georgia Technology Authority Monday at the State Capitol. The Authority was created by the Georgia Technology Authority Act, proposed by Barnes and enacted by the General Assembly this year. It will be responsible for overseeing the planning, procurement and management of state government's telephone, Internet and computer systems. Seven members were appointed by Barnes and two each by Lt. Gov. Mark Taylor, D, and House Speaker Thomas Murphy, D. There is also an ex-officio member appointed by the Chief Justice who has not yet been named.
Idaho's Digital Government Ranked No. 3
Idaho has been recognized among the top three states in the nation for its progress in providing citizens with electronic access to information on government branches. The Center for Digital Government, CA, in conjunction with the Progress and Freedom Foundation and Government Technology magazine, announced the results from part three of a four-part, year-long "Digital States Survey" exploring areas of technology progress around the country.
Kirk, Dawson Play Hardball
Dallas, TX, Mayor Ron Kirk and Information Technology Industry Council President Rhett Dawson played "Hardball" with TV personality Chris Matthews on CNBC last week over the issue of taxing online Internet business. On Capitol Hill and in state governments, politicians and industry representatives have been attempting to address the numerous effects of a rapidly growing e-commerce economy.
Kirk cited a recent University of Tennessee study that estimated how much revenue states would lose each year if online sales were not taxed. Some figures included California losing $2 billion, Texas losing $1.7 billion and New York losing $1.6 billion. All 50 states would lose about $20 billion of retail revenue in total, Kirk said.
"In the state of Texas, a $2 billion hit is a pretty big hit," Kirk said. "That's less money we have to finance our police forces, our libraries, schools."
Kirk continued, saying the real losers in not taxing the Internet will be the poorest of Americans who have no credit history to take advantage of e-commerce opportunities.
"It's not so much it's an Internet economy, it's a credit card economy," he said. "If you don't have credit, you don't benefit. It doesn't make good tax policy."
Dawson countered from an industry standpoint - a sector generally opposed to taxing online businesses — and said the states need to be more "adaptive and flexible" in their tax regulations.
"We're not trying to exempt ourselves from sales taxes," Dawson said. "States have to be more adaptive and flexible" and less reliant on a patchwork tax system.
Kirk said it's very difficult for local governments to do any long-range planning because of the rapid evolution rate of technology, but that mayors are trying to work with Congress to come up with a solution that doesn't compromise public services if the Internet remains untaxed. He agreed that states and local governments need to simplify their tax systems to be somewhat in accordance with each other to accommodate an "industry born out of a miracle."
- by Liza Porteus
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