Oregon Center for Public Policy
Is Intel Bluffing?
Washington County commissioners are proposing to
sign a new "Strategic Investment Program" tax break
agreement with Intel. In response to Intel's thinly
veiled threats to abandon Oregon, the commissioners
are planning to give away $579 million of property
taxes that are dedicated to funding public services.
If Intel stays and makes the investments anyway
their property tax liability would go up by $39
million per year over 15 years. Because property
taxes are deductible from the 35% federal corporate
income tax, Intel's actual additional out-of-pocket
costs without the tax break would be $25 million per
How likely is it that a company with $24 billion in
annual expenses would disrupt the mainstay of its
worldwide operations in any way, shape, or form over
a property tax bill that's one-tenth of one percent
of its annual expenses? How likely is it that a
company that paid its Oregon employees $1.5 billion
in 2002 is going to abandon that trained and
talented workforce over a relatively small expense?
Read the rest of Is Intel Bluffing?, OCPP's
May CenterPoints ( link to rs6.net)