Monte Koch was at the Economic Development Authority public hearing Tuesday to advocate for tax breaks for a new consulting business on St. Thomas.
However, because of his experience in aviation, questions from the board occasionally turned the conversation to climate change and transportation issues.
Michael Cribari, the owner of the second business being considered for tax benefits because of his experience as an entrepreneur, fielded questions about artificial intelligence, referred to as AI, by board members.
The conversation first went to climate change when board member Jose Penn asked Koch whether he believed in climate change. Koch told a story about how much warmer mornings were in Alaska, which he visits yearly. He then said that businesses have “no choice.” They had to consider the future, which the scientific consensus says will be warmer. The Virgin Islands, as evidenced by two Category 5 hurricanes in 2017, is exceptionally vulnerable to climate change. Koch defended the aviation industry, saying it contributed only two percent of the CO2 emissions. However, he said the industry was doing everything possible to cut emissions, such as developing alternate fuels and changing routes.
As for inter-island travel, which board member Positive Nelson pointed out as a difficulty, Koch said a solution was not near but not far off either. He pointed to recent developments in vertical take-off and landing an aircraft. According to Koch, these aircraft don’t need a runway and may be cheaper to operate. He called the aircraft VTOLs, which might recall to territory residents the financially disastrous deal that the Water and Power Authority had with Vitol.
Koch applied for EDA benefits for his consulting business, TBCA USVI, which offers management advice to other companies.
EDA potential benefits include:
- 90 percent reduction on personal income tax
- 90 percent reduction on corporate income tax
- 100 percent exemption on excise taxes
- 100 percent exemption on business property taxes
- 100 percent exemption on gross receipts taxes
- Reduction in the customs duty from the standard six percent to one percent
Cribari was presenting a request for benefits for PMX1, an investment firm specializing in digital marketing. He was asked what effect AI would have on his business. He said it would be a “very positive” effect. He said it was amazing what AI could do. He said it would be possible to take the design made by one person and leverage it into 20 designs. However, he said fears about AI replacing workers were unfounded.
His assessment was contrary to what the former vice president of Google, Geoffrey Hinton, said in a Harper’s article this month. He reportedly has said that “we have not replicated our intelligence but created a superior one.” According to Microsoft’s AI, Michael Cribari is associated with High Roller Technologies and Spike Up Media.
Cribari, at the hearing, mentioned “prompting.” This is a way to narrow down AI and get more precise answers. The Source, in a way of “prompting,” asked AI whether Cribari was involved in the Virgin Islands. The answer that came back, journalistically, appeared too strange to print. Journalistically, even the association with High Roller and Spike Up Media would not pass the verification test.
Koch’s career in investment banking includes roles at Deutsche Bank Securities Inc., the U.S. investment banking and securities arm of German banking firm Deutsche Bank. He currently serves on the board of the National Business Aviation Association.
Board members Philip Payne, Nelson, Kevin Rodriguez, Anise Hodge, Penn, and Gary Molloy attended the hearing.
