Posted on 04/01/2005 5:04:09 AM PST by Zon
The president of Intel, Paul S. Otellini, warned a federal panel addressing tax issues that because of high tax rates in the United States, his company may build its next $3 billion semiconductor factory overseas.
...
"The problem that we have and which the industry has is that it costs us $1 billion more to operate inside the U.S. than outside of the country," he said. "It's not wages and capital; its almost all attributed to tax benefits--or the lack thereof--in the United States compared to what is offered elsewhere."
ping...
bttt
We should raise taxes on imported semiconductors so that our semiconductor manufacturers can afford to pay taxes. Do I have it straight?
Ok let's give our business some tax breaks, we'll have to ban some Libs from political office for a million years!
You not only don't have it straight, you rather apparently didn't even read the article.
Potential solutions to the foreign tax advantage might include cuts in United States taxes, investment tax credits or permitting companies to take the full cost of building the factory as an expense during the first year, Otellini said.
How you got 'raising taxes on imported semiconductors' out of that is beyond me.
Naw we need more protectionism and higher tariffs to keep the jobs here /s
How do you propose I read the article? The link is dead. In any case, I am commenting on the fact that we have a small number of members here whose first reaction to the except posted above would be to propose tariffs on imported semiconductors. A tariff is a tax.
He's not asking for generic lower taxes, he's asking for industry-specific tax breaks and would probably be delighted with Intel-specfic ones. What this is is another 'businessman' looking for a government handout.
How do you propose I read the article? The link is dead.
The link works fine in my browser.
I am commenting on the fact that we have a small number of members here whose first reaction to the except posted above would be to propose tariffs on imported semiconductors. A tariff is a tax.
If you are trying to react to members here...you probably ought to at least wait until someone actually makes takes the position you oppose. Otherwise, you are setting up a strawman. And you really really shouldn't structure and word it to sound like it came from an excerpted article.
I'm getting a 404 error message from CNet News. As for my "strawman," perhaps you should spend some time on threads where the semiconductor industry is discussed.
He's not asking for generic lower taxes, he's asking for industry-specific tax breaks and would probably be delighted with Intel-specfic ones. What this is is another 'businessman' looking for a government handout.
He's telling the panel how it is. He understands the tax-lobby game. The New York Times article is catering to the status quo. ...Not a word nor implication in the article about a consumption tax, or flat tax for that mater.. The Point I made was in line with market principles being the driving force, yet hindered by the income tax.
Otellini is talking to a tax panel that is collecting information that will lead to a reform or restructuring the income tax. 25% of Intel's manufacturing plants are located in countries other than United States.
"The advisory panel, which has been holding hearings in different cities on the issue of tax reform, met in San Francisco to explore how the federal tax code affects economic growth and the nation's competitiveness."
Perhaps C/net has blackballed you.
I wonder if we could have sent Terri Schiavo overseas instead of killing her?
"We should raise taxes on imported semiconductors so that our semiconductor manufacturers can afford to pay taxes. Do I have it straight?"
That would kill the US computer industry. How about just lowering taxes? It's amazing. Every time a new industry pops up it does very well in the US until politicians figure out new ways to tax it then it goes over seas. It's almost like politicians don't want American companies to do well and create more jobs.
Rule of thumb. If you want less of something, tax it. If you want more of something, subsidize it. Politicians want fewer jobs and more welfare cheats apparently.
Ya other nations have really stepped up their game. They are lowering corporate taxes around the entire planet to attract corporations.
Fair tax would be even better.. because we are paying hte income taxes too. At least when we compete with Japan or Europe they are facing even higher income taxes. That might not be so true in the future against China.
That might be true for personal income tax rates. Our corporate income tax rate is one of the highest (if not the highest) in the world, and U.S. corporations have the singular "pleasure" of paying tax on their world-wide income, instead of simply paying on what they earn here.
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