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We Live In Taxing Times 12 July 2001 Edition
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I've been sitting here for a couple of hours trying to come up with a suitable topic for today's commentary -- but there is nothing particularly inspiring happening out there that I haven't already covered.

Days like this can be very hard work for an impoverished commentator who has to grind out bright and sparkling prose on exciting new topics day after day :-)

One thing I did notice on the Telstra/Saturn Business programme this morning (6:30am on TV1) was the noise people are making about the compliance costs associated with doing business in New Zealand.

(Note to TVNZ -- Why isn't the Telstra/Saturn Business program included on this page where most sensible people would expect to find it?)

While it's true that anyone starting a business for the first time in New Zealand will probably be gobsmacked by the amount of paper that starts streaming through their mailbox, at least we're not quite as badly off as some places in the USA.

Take for example the case of Huges Electronics, the company which operates a large number of satellites positioned over 22,000 miles above the earth in geostationary orbits. A number of these satellites just happen to be operated out of Los Angeles County -- so the local tax assessor there has decided that, since they are such valuable pieces of property, and since they ARE effectively within the boundaries of his tax area, he's going to levy an extra property tax (based on the value of the satellites) on Huges.

Yes, that's right -- the taxman has decided that, for the purposes of tax liabilities, distance is no object.

How crazy is that? -- almost as crazy as claiming a cultural right to the radio spectrum I suspect.

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Microsoft Shows Its Age
Even the most powerful and successful companies have eventually lost the plot and come unstuck by either not keeping up with technology -- or simply going too far in the wrong direction.

The bigger and more successful you are, the more likely you are to think that the market will adapt to your products rather than the converse. This is why we will always see bright, innovative new companies overtaking their larger, bloated forebears.

One such victim of this old-agedness is Polariod in the USA. It seems that they've been unable to make the transition from film-based instant photography to the newer digitally-based stuff. Word on the wires is that Polaroid is so far down the gurgler that it may soon file for bankruptcy protection.

I wonder if Microsoft isn't also starting showing its age and contempt for the demands of the market as it prepares to roll out HailStorm.

Does Microsoft really expect the market to embrace a product/service to which they will surrender some of their most valuable data when that service is being delivered by a company with one of the worst security records in the business?

What's more -- it's a company that has on several occasions shown that it is incapable of quickly fixing their online systems when things go wrong. Most recently we've seen this with the week-long outage of its instant messaging system and previously it has left HotMail users high and dry for protracted periods.

Just a word to Microsoft -- just because you build it doesn't mean they will come. You're big and powerful -- but perhaps not so big and powerful that people will accept that level of risk.


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