MARIA: VENTURE CAPITAL ICON ALAN
PATRICOF OUR GUEST THIS WEEKEND.
THE SUPREME COURT RULING WILL
ALLOW STATES TO COLLECT SALES
TAX FOR ONLINE SHOPPING.
THIS IS A LONG TIME COMING FOR
SOME PEOPLE.
BUT THERE IS A DEBATE, IF YOU
DON'T HAVE A PHYSICAL PRESENCE
YOU SHOULDN'T PAY TAX.
>> I'M SUPPORTIVE OF THIS
DECISION.
IT'S MADE IT DIFFICULT FOR A LOT
OF PHYSICAL PRESENCE RETAILERS
TO COMPETE WHEN IN YOUR ORDER
BAG YOU START OUT WITH AN 8% OR
WHATEVER THE SALES TAX RATES
ARE.
THE LOGIC BEHIND IT, IT'S LIKE
AN OUTDATED LAW OR ALLOWANCE
THAT SHOULD HAVE BEEN CHANGED A
LONG TIME AGO.
MARIA: AT A DEPARTMENT TYPE WHEN
ONLINE SHOPPING WASN'T LUKE IT
IS TODAY.
>> ONLINE SHOPPING IS 40% OF ALL
RETAILING TODAY.
I WAS WALKING UP LEXINGTON
AVENUE IN NEW YORK LAST NIGHT.
FIVE BLOCKS.
AND I WILL TELL YOU 50% TO 60%
OF THERS TO ARE EMPTY.
IF YOU GO AROUND THE COUNTRY AND
GO TO SHOPPING MALLS.
THE IMPACT OF ONLINE INTERNET
BUYING DIRECT TO CONSUMER, AND
WE ARE PARTICIPATING IN IT.
WE INVESTED A LOT OF MONEY IN A
LOT OF COMPANIES ONLINE.
IT DECIMATED THE WHOLE
NEIGHBORHOOD ASPECT.
AND EVEN HOW PEOPLE USED TO
DATE, THEY USED THE TELEPHONE
AND CALLED SOMEONE.
NOW THEY USE ONLINE DATING.
THAT AFFECTS SALES TAXES.
BUT IT'S HOW INTERACTION WAS SO
DIDN'T GOING INTO YOUR LOCAL
WASTE WAS.
PEOPLE LOST A LOT OF THAT.
I THINK THIS IS ONE COMPONENT OF
SALES TAX.
I THINK A LOT OF LOCAL RETAILERS
WILL BE -- WILL WARMLY GREET
THAT.
MARIA: YOU SAID YOU WERE WALK
AND ALL THESE SHOPS WERE OUT OF
BUSINESS.
WHAT DOES THAT SAY ABOUT THE
ECONOMY?
WE ARE GETTING GOOD NUMBERS,
VIRTUAL FULL EMPLOYMENT.
GROWTH BEING TALKED ABOUT UP TO
4% IN THE NEXT YEAR OR SO.
FEDERAL RESERVE HAS THE SECOND
QUARTER.
ARE YOU SEEING THAT FROM YOUR
VANTAGE POINT?
>> IT'S INTERESTING.
FROM THE STANDPOINT OF THE
COPIES.
I DID BY WENT ON THE SHOW JUST
FOR THE FUN OF IT.
I DID A RANDOM, WE HAVE 140
COMPANIES.
I SENT IT OUT TO 20 COMPANIES.
I SAID WHAT IS THE IMPACT OF THE
COMPANIES AND THE TARIFFS.
WHAT'S THE IMPACT OF
IMMIGRATION.
VENTURE CAPITAL COMPANIES DON'T
BORROW MONEY, SO THEY DON'T MEAN
ANYTHING.
MOST OF OF THEM ARE DEALING WITH
U.S.-BASED ACTIVITIES SO THAT
DOES IT.
THE ONLY THING THAT CONCERNS
THEM.
AND THEY DON'T SPEND THAT MUCH
TIME FOCUSED ON POLITICS.
THE ONLY THING THAT HAS SOME
IMPACT FROM THE REACTION I GOT
WHICH I WOULD HAVE EXPECTED WAS
THE IMMIGRATION ISSUE AND THE
ABILITY TO HAVE EMPLOYEES AT A
LOWER SALARY LEVEL, AND THE
HIGHER LEVEL WITH THE VISAS HAT
HAVE BEEN READILY AVAILABLE UP
UNTIL NOW.
OTHER THAN THAT, I WOULD SAY
VENTURE-TYPE INVESTMENTS -- MOST
OF OUR COMPANIES ARE GROWING AT
50% A YEAR.
NOT THAT WE ARE SO SPECIAL.
THAT'S THE NATURE OF THE
COMPANIES VENTURE CAPITALISTS
INVEST IN.
EVEN IF THE ECONOMY IS SOFTER.
SO 40% INSTEAD OF 50% IN THIS