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Washington county plans new tax break giveaway to Intel

The U.S. has a chronic shortage of jobs. Governments at all levels are using this as an excuse to give tax credits to big business. The result is a loss of tax revenue to support public services. We are throwing people out of the lifeboats. Another result is a shift in the tax burden from corporations to the rest of us. And from what I've read, the tax credits do NOT produce jobs. We need to demand that our elected officials stop playing this game.
Oregon Center for Public Policy
 http://www.ocpp.org/cgi-bin/display.cgi?page=cp0505


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
year.

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)
column.

homepage: homepage: http://www.ocpp.org/


Catch-22 07.May.2005 00:32

Yossarian

I love how Intel says our kids are too dumb to work for them. Yet they don't want to pay any property taxes that would help fund Oregon's schools.

Maybe Intel Should Go Into The For-Profit School Biz 12.May.2005 12:12

alsis38 alsis35@yahoo.com

Why not kill two birds with one stone, I always say... :/