Intel CEO: Things Need to Change in the U.S.
Intel's Paul Otellini predicts that the "next big thing" won't happen in the States unless government policies change.
Monday night Intel CEO Paul Otellini warned government officials that the U.S. will face a huge tech decline if government policies are not altered. In fact, the "next big thing" won't be invented here in the States, and jobs will be created outside our borders.
The warning was part of his observations about the Obama administration and the nation's economy during dinner at the Technology Policy Institute's Aspen Forum. He took aim at the U.S. legal environment, claiming that its become so hostile to business that there could be "an inevitable erosion and shift of wealth, much like we're seeing today in Europe--this is the bitter truth."
He went on to criticize the administration's Keynesian policy of economic stimulus and its inability to understand the concept of creating new jobs. "They're in a 'Do' loop right now trying to figure out what the answer is," Otellini told the audience.
"I can tell you definitively that it costs $1 billion more per factory for me to build, equip, and operate a semiconductor manufacturing facility in the United States," Otellini said. He also added that the majority of his costs were taxes and regulations not imposed in other countries. If the rates matched those with the rest of the world, outside corporations would have more of an incentive to invest in the U.S.
Former HP CEO and current Republican Senate candidate Carly Fiorina pointed out just a day prior that corporate tax rates are the second highest in the world. Fiorina also said that government policies are pushing jobs overseas rather than making U.S. companies more competitive against international rivals.
Bottom line, if politicians don't cut business taxes, people will not invest in the United States. "They'll invest elsewhere," Otellini said.
Remember that Simpson's episode where they were going to film the Radioactive Man movie? The town drove away the movie producers because they started taxing EVERYTHING. Well, that might have been fiction, but lots of communities behave that way. Microsoft would be located in Albuquerque today if it weren't for stupid tax laws in place when Bill Gates used to live there.
Some small county sees a big corporation and doesn't think "wow, thanks for all those jobs you provide, pumping in money to people's pockets which then gets spent at other shops, benefitting all of us". No, they think "how can we get more of those millions to fund important projects like gold-plated toilets in City Hall and putting up new fancy lights on Main Street to replace those old, drab, yet fully functional lights we already have?"
My uncle incorporated his business a few years ago. His single largest expense (more that wages, resources, anything) was hiring a business lawyer to make sure he complied with all the ridiculous laws (and he incorporated in Delaware, which was supposed to make it easier).
The days of forming a company in your mother's garage are done for. Heck, if you try to sell anything out of her garage, the local police would probably bust your ass for zoning violations. That's the main reason you hardly see lemonade stands anymore, them kids ain't got the right permits.
Learn to read. He wants the U.S. economy to be strong. That requires businesses being able to cost effectively do business. Stock holders want a business to do well for stock values and dividends. Keep in mind stick holders are people trying to save for retirement, 401k plans and many retirement funds.
So if building a plant in the U.S. is more cost effective they will and that makes jobs. Not rich getting richer, everyone being better off.
The claim of corporate greed is tired at best...
Businesses run where they can make money. As a publicly owned company (Intel) it is THEIR JOB to turn a profit. Expecting them to stay in the US from loyalty is not reasonable in a global world economy. It would be nice, but not reasonable.
So he is spot on....
all he wants to do is push the tax burden on the common man... the rich get richer and the poor get poor
Learn to read. He wants the U.S. economy to be strong. That requires businesses being able to cost effectively do business. Stock holders want a business to do well for stock values and dividends. Keep in mind stick holders are people trying to save for retirement, 401k plans and many retirement funds.
So if building a plant in the U.S. is more cost effective they will and that makes jobs. Not rich getting richer, everyone being better off.
If they cant tax you, they'll just sue you for anti trust violations
Remember that Simpson's episode where they were going to film the Radioactive Man movie? The town drove away the movie producers because they started taxing EVERYTHING. Well, that might have been fiction, but lots of communities behave that way. Microsoft would be located in Albuquerque today if it weren't for stupid tax laws in place when Bill Gates used to live there.
Some small county sees a big corporation and doesn't think "wow, thanks for all those jobs you provide, pumping in money to people's pockets which then gets spent at other shops, benefitting all of us". No, they think "how can we get more of those millions to fund important projects like gold-plated toilets in City Hall and putting up new fancy lights on Main Street to replace those old, drab, yet fully functional lights we already have?"
My uncle incorporated his business a few years ago. His single largest expense (more that wages, resources, anything) was hiring a business lawyer to make sure he complied with all the ridiculous laws (and he incorporated in Delaware, which was supposed to make it easier).
The days of forming a company in your mother's garage are done for. Heck, if you try to sell anything out of her garage, the local police would probably bust your ass for zoning violations. That's the main reason you hardly see lemonade stands anymore, them kids ain't got the right permits.
The claim of corporate greed is tired at best...
Businesses run where they can make money. As a publicly owned company (Intel) it is THEIR JOB to turn a profit. Expecting them to stay in the US from loyalty is not reasonable in a global world economy. It would be nice, but not reasonable.
So he is spot on....
Or all company's will slowly become rambus.
Not to mention I haven't paid a single dime to the IRS since I've entered the workforce. All that income tax? I got that back because I wasn't in a high enough tax bracket. And with enough know how, you could still reclaim a lot of your money that the government took.
So complaining that I now suddenly have to pay taxes just so I have the possibility of getting a (possibly better paying) job when I pay nothing to the Man sounds like a slap on the face.
Are you serious? What'd all those tax breaks Bush gave to the big companies do for the economy? It ruined it as you can see by the recession we have now. The move NEVER trickles down to the middle and lower classes. The people at the top just keep the money for themselves. If you can't see that, then wow...
Obviously someone hasn't read anything about the economic crisis. I'm probably pulling this out of my rear but I'm pretty sure there was something called unaccountability and irresponsible spending/loaning involved. Or you could start blaming Apple for conspiracy considering they are one of the few companies that had record profits during the recession.
As long as they do right by the environment and don't simply try to dump toxic waste somewhere, everybody wins.
Maybe Intel just needs to learn how to negotiate plant deals better. I'm sure they could learn a trick or two from Wal-mart, the demise of western civilization.
people. Hate the company if you want, don't buy their products if you don't consider them the root of all evil. But using them as uncle money bags is an unacceptable and self destructive practice. And before any body cries Intel fanboy I can assure you AMD and similar feeling on the issue.
we did, we got rid of an incompetent republican who dislikes terrorists with an incompetent democrat who lets terrorists do they as they please...that's change!