The Daily Parker

Politics, Weather, Photography, and the Dog

Lest I forget where I am...

...the San Francisco Board of Supervisors voted 10-1 today to ban plastic bags at grocery stores:

San Francisco's Board of Supervisors voted 10-1 this afternoon to make the city the first in the nation to prohibit petroleum-based plastic checkout bags in large markets and pharmacies.
On the first of two votes needed for final passage, supervisors approved legislation sponsored by Supervisor Ross Mikarimi that would mandate the use of biodegradable plastic bags or recyclable paper bags. The legislation would take effect in about six months for some 50 large markets in San Francisco and would apply in about 12 months to large drugstore chains such as Walgreen's and Rite-Aid.

VSLive: Day 1

I hope to write more when the conference ends, or perhaps if I play hooky from a session or two tomorrow. Today, I would just like to point out that San Francisco offers more food options than a human can count, so I passed up the boxed-sandwich thing and headed into the streets. It's easy to be mostly-vegetarian here, too, especially when you find a good Mediterrenean restaurant four blocks away.

New session starting soon; I'll be back.

San Francisco

I'm sitting in the Hotel California lobby watching rain-soaked buses trundle down Geary Street. I'm in the lobby because the hotel's WiFi doesn't actually reach the fourth floor. This, and the unfortunate confluence of a room overlooking the street and a 23-year-old's birthday party Saturday night that spilled out of the lobby and down the block until the cops broke it up around 4 am, is my only complaint about the place. Old hotels have old windows, so it got a little noisy during the melée

The hotel is truly a gem. From the little perk at check-in—a frozen tequila shot—to the wine and cheese spread they put out every night, to the understated décor, to the lobby it shares with Millenium (a wonderful vegetarian restaurant with a tasty wine list), I love staying here. The bill adds to my pleasure: only about $100 a night, half of what hotels closer to the Moscone Center wanted. Since it's also only about 500 m from there—a 10-minute walk through Union Square—it was a no-brainer.

Of course, I'm in my third-favorite city on the planet (after Chicago and London), sitting in a hotel lobby. The one day that the conference sessions are truly uninteresting to me is the one day that it's pouring down with rain. It's supposed to let up a bit later, so I may have dinner at the Ferry Building or even, if the spirit (and Muni bus) moves me, Sausalito. And they put out the wine and cheese in an hour.

VSLive: Day 0

One would think that planning a conference for 1,500 or so software developers would involve planning for 1,500 or so laptop computers. This means, among other things, providing (a) power outlets and (b) decent WiFi access.

After searching for half an hour I found one lone power strip in the "Gold Passport Lounge," and the only reason the other 1,499 people here aren't using it is that they're patiently sitting upstairs listening to an ill-prepared presenter from Microsoft who will probably get a "BillG" email tonight asking him why he was so unprepared.

As for WiFi access, despite the relatively few people down here in the lounge, I'm still getting only about 77 kbps of throughput. Yes, I'm at a developer conference getting modem-speed Internet access.

I'll have more later on today's presentations, the final three of which I may skip. The pre-conference workshop I attended yesterday I found invaluable; I'm looking forward to Deborah Kurata's panel discussions later on this week.

Things forgotten

I realized last night that I forgot to bring some important things to VSLive:

  1. Business cards. I have about six with me. I have about 200 in my office. Hello, Kinko's?
  2. A USB cable, required to connect my phone and my camera to my laptop. There's a CompUSA about 100 m from here, fortunately.

It's always something.

Also, a propos of nothing, I got the best pitch from a panhandler today that I've ever heard: "Buddy, can you spare $1,000? I have a payment plan..."

Today's Daily Parker

Parker has gone on vacation for a week while I'm at a professional conference. When I dropped him off with the dog sitter I felt pretty sad:

Today's DP will return April 2nd, but I'll be checking in all week (and probably cross-posting to my professional blog). So if you're only interested in puppy photos, enjoy spring break, and think of Parker spending every day with all his play-group friends (since many of them are in day care).

Gov. Blagojevich's gross-receipts tax proposal

My accountant, Linda Forman, sent me this note on the Illinois Gross Receipts Tax proposed by Gov. Blagojevich. Now, I voted for the man twice, and I voted for my state senator (who also supports the proposal) twice, but if they go ahead with this proposal I'm not sure I will continue to support them:

The Gross Receipts Tax Proposal
There are thoughtful people in the political arena mulling over the proposal of a gross receipts tax and the prospect of health care coverage for the uninsured employees in Illinois.
While debate goes on, I would like you to visit with a company or two that could be a composite of many small business clients.
The Service Company
Currently, a service company employs 40 people and provides health care and life insurance, fringe benefits and a generous profit sharing plan.
It funds the fringe benefits and profit sharing with some of the $300,000 in profits it realizes on its $6,000,000 in service sales.
Oh, did I mention that the business owners would like some income each year from their capital investment in the company. That usually is a 9% return, or $90,000.
So the $300,000 in yearly profits is put to good use – excellent employee benefits and a reasonable rate of return on capital invested. This is a growing company. It pays taxes on its net income, pays various business taxes to the state and community and keeps 40 people on the tax rolls. It also uses the services of other Illinois businesses, contributing to a vital economy.
Under the gross receipts tax proposal, the $6,000,000 gross income will be taxed to the tune of $300,000. So there goes the profit that funded employee retirement plans and kept investors happy. BUT now, other businesses that provide service to this company have also raised their rates to cover the gross receipts tax, so this company is now operating at a LOSS. And it has lost its competitive pricing edge.
When companies operate at a loss, their usual options are:
  • Lay off employees
  • Cut benefits
  • Move to a more business friendly area
And this helps Illinois’s economy HOW??
  • More unemployment compensation payments.
  • More uninsured workers? Loss of tax revenue from income taxes.
  • Loss of a productive business if it moves out of state.
Raising “prices” may work for government, but in this global economy, it is often NOT an option.
The Widget Company
The Widget Company competes with other widget makers, striving to make a good quality product at a competitive price. It has made a commitment to stay in Illinois, even though the state has hiked fees in the past. The corporate income tax is 7.3% of net income, certainly a significant tax but bearable, since net profit is only 4% of gross receipts of $6,000,000; the tax is approximately $17,000.
The company’s margins on its product lines cover the administrative and sales overhead. If it had to raise prices 5% to cover the gross receipts tax, it would lose business in a market where customers are swayed by even the slightest rise in price.
If the company has to pay a gross receipts tax of 5%, it would have to pay $300,000!! But its net profit is only $240,000 so it would be $60,000 in the hole. This is a company that is going to MOVE out of Illinois to a warmer climate in a state where business is appreciated. What other choice does it have – it can’t pass along the costs to consumers while dealing in a global marketplace.
My thoughts
The gross receipts tax idea is just that - GROSS. It will repel new business and seriously impede current business growth. There has to be an analysis of WHY some large corporations are not paying tax, since the formula for paying Illinois taxes is based on a factor of Illinois sales to total sales. And there has to be a corollary analysis of what other taxes big business is paying to Illinois, since other fees on businesses have risen sharply in this administration.
I have clients who will be severely impacted by a gross income tax - and attempts to remain in Illinois and deal with the tax will only result in loss of jobs and benefits for their employees.
There has to be an intelligent game plan - and we need more information from the governor before we can assess where the issues are.
AND, with regards to an expanded Illinois health care plan, I think a good health plan needs to be national in scope and administered like Medicare - and that the state of Illinois, in its precarious financial position, can't take on health care while it has to correct huge pension and other funding deficits. And given the historically poor reimbursement payment rate and lateness of payment, where will Illinois find the health care providers to accept families covered by the proposed health insurance plan?
Linda Forman, CPA
Evanston, Ill.

By the way, no, Inner Drive Technology is not the service company she mentioned, as much as I might wish for $6 million in revenues.

Update, 8:49 am: Linda adds the following:

The gross receipts tax rate may have lowered in discussions since this was first written, but the concept is still there, along with the health insurance issue. Actually many companies are toying with the idea of dropping their coverage and only paying the state's 3% rate, which will cause a larger population to be in the state's insurance fund - another negative result of this proposal.

Even luckier I came along

On Sunday I posted about catching a dog running loose in town. This afternoon I spoke with the local animal shelter to see if she had gotten back home.

Short answer: no.

It seems that Sandy, the slightly-overweight, very sweet beagle mix that Parker and I collared, is a regular visitor to the shelter. Six times, in fact. And each time, the owner gets cited, and each time, the owner takes several days to collect her. Sandy also has a brother, who is also a slightly-pudgy, very sweet beagle mix, whom the owner has voluntarily surrendered to the shelter. As soon as he's neutered—he's about 7—they'll put him up for adoption. The shelter also told me that they're about to send Sandy's owner a 24-hour notice, saying essentially "get your dog today or we're keeping her."

I had assumed that her owner would be worried about her, given that she had current tags and all. But no, the owner isn't worried, not one whit. Not even worried that someone (me) picked the dog up half a mile away and across a major street from home. Apparently the only reason Sandy had current tags is that the shelter won't release a dog without them, even if she comes in stray, so Sandy only got those from previous visits to Hotel Hound.

So, if you know anyone who wants a really sweet but slightly pudgy beagle-ish dog—or two—drop me a note and I'll put you in touch with the shelter.

Oh, yeah, here's the irony: if Sandy had an ID tag around her neck, I would have dropped her off at home, and the owner would not now be facing yet another citation. Then again, this will probably work out better for Sandy and her brother in the long run.

Ouch: $38 bn fund data wiped out

This has to hurt:

While doing routine maintenance work, [a] technician accidentally deleted applicant information for an oil-funded account — one of Alaska residents’ biggest perks — and mistakenly reformatted the backup drive, as well.
There was still hope, until the department discovered its third line of defense, backup tapes, were unreadable.

The article said "no one was blamed." Right.