I don't think he is going to leave.

My issue with most of the people who say he won't leave and then raise taxes - Forget about any expansion/growth ever. I know a couple of high-tech companies who have chosen to grow eleswhere and the tax structure is part of the issue.

I thought the way Knight worded the bit you quote was interesting . . . as though it might be another company he was talking about . . . and if he was talking about Nike, referring to himself in the third person. Weird. Maybe "royal."

Nike has such an investment in property and profile, as well has effectively having Beaverton under its thumb and U of O (and shortly OSU) sitting up and begging for uniforms and various amenities, I don't see them making a move to a place where they have less influence, perks and voice.

An they can't move manufacturing, can they? It's already all offshore.

I thought Knight's op-ed was brilliant and both thought-provoking and stinging. He has the ground on which to make it. He's a rare breed, a homegrown home-stater, enormously successful and self-made, and has generously benefacted the institutions and state he has allegiance to. Has anyone in Oregon done so much for the state in the last few decades? I think his words should be read with respect and regard even for those who do not agree.

I call him a Great Oregonian. Damn, he still looks good, too.

The thing is, Nike is already "elsewhere". Nearly all manufacturing is overseas, money is carefully moved about like any good multinational. Only one set of corporate offices is here. Even Knight is often not in Oregon.

In other words, Nike "leaving" Oregon would mean nothing more than moving the corporate headquarters; nearly all Nike employees and business is elsewhere.

Right, ecohuman, what's another 7,000 Oregon jobs lost? "Nearly all" employees are elsewhere mainly if you count workers in global factories. To be dismissive of what Nike AND Knight give to Oregon on that basis would be what I call throwing the baby out with the bathwater.

Phil Knight is no idiot: Oregon needs him more than he needs Oregon. Troof.

I thought it was kind of sad, to be honest. Didn't cite a single statistic ... Most of the companies he named didn't move out because of the business climate; they got swallowed up in the M&A boom. Surely he knows that.

Reminded me of Al Davis.

Most of the companies he named didn't move out because of the business climate; they got swallowed up in the M&A boom. Surely he knows that.

That is normal turnover. Where are the ones coming to Oregon that used to balance things out? Why are some states keeping Fortune 500 corporate HQ & we aren't?

Last shoe company I read about regretted the move to Oregon due to all the petty regulations. (IE: planners)

Thanks
JK

Last year Mr. Knight sold stock and paid $145 million dollars, that right 145 million in Oregon capitol gains taxes. This amount actually made the budget for that biennium. If Phil moved over to Washington he could have kept that amount in his pocket. Now he is facing a 22% increase in his state income taxes under measure 66. When the proponents say it is only a 1.8% to 2% increase in the tax rate is certainly misleading. That amounts to a twenty to twenty two percent increase in income taxes for the folks in that bracket. For Mr. Knight that would have been thirty million and change. What would you do? I would most certainly move my residence to Washougal.

Try driving from there to Beaverton at 8:00 in the morning. And explaining to the world press why you're the world's greatest Duck fan but you live in Husky country. I'll agree that Oregon has a lousy, lousy business reputation, but Phil Knight's not moving.

BTW, that state income tax is probably deductible on his federal tax return, and so if the state gets him for $25 million, it's really "only" something like $16.25 million.

For about 4 million a year he could have a helicopter ferry him every day. That still would be twelve million in his pocket.

Minus sales tax.

JK: Why are some states keeping Fortune 500 corporate HQ & we aren't?

Phil Knight: "Can (our leaders) get a company to move to anti-business Oregon without waiving taxes, passing even more burden onto the rest of us?"

Steve, I don't know whether Nike will leave either. But I do know that many companies don't want to come here, even with extensive tax incentives.

Remember Chinese solar-panel maker Suntech that Kulongoski and Sam were courting for a long time to come to Oregon. They both went to Asia to offer all kinds of federal, state, local tax incentives, grants, work training programs and free land. In November Suntech announced they had chosen Phoenix as their U.S. headquarters and manufacturing plant site. Nothing was in the Oregonian about Sam and Ted's failures.

"Suntech said it selected the Phoenix area because of Arizona's leadership in solar research... and statewide renewable-energy policies". I've been told by Sam and Ted that we are the leaders. "First Phase of Suntech's 100,000 square-foot facility will bring a $13 million investment and 125 jobs...". "This is a company that's capable of creating thousands of jobs in a state like Arizona."

Tax climate, cost to build (Arizona is a "right to works state), and ease to build and prosper are all part of why Arizona was chosen over Oregon even though we promised "the farm" and have all kinds of "livability credits"-so we think.

Keep on dreaming, Oregon, and vote yes on 66 and 67.

Phil could move LAIKA without any repercussions.

Let's not forget the electric smart car company that went to Indiana.

If Phil Knight decides to move, it won't be just him that will be moving. And it won't be to Washougal. With a presence there, how long do you think it will take OHSU to incorporate in Florida. And we've heard rumblings about Columbia Sportswear forever. Of course no one thought Boeing would ever leave Seattle either. In an odd way, I hope both measures pass as the long term impact would likely force major change in our tax structure (sales tax anyone). At least we'd have zero growth for awhile without passing any ordinances and the Port of Portland could stop building parking garages.

It's foolish not to care just a little bit about what someone like Phil Knight thinks. Despite what ecohuman and others might think, if Nike left it would be a HUGE blow to this town.

It might be pleasant to think that we can have a thriving local economy consisting of people running food carts and selling coffee. But the fact is we need corporations and rich people.

There is a lot of dissonance in Oregon right now with people simultaneously complaining about the lack of good jobs, but still harboring a basically anti-business attitude.

Can't have it both ways, folks.

daveg: "In an odd way, I hope both measures pass as the long term impact would likely force major change in our tax structure"

I'd rather they fail so we would force that change now.

Isn't this is the same Phil Knight who insisted that Nike be an (untaxed) island in the middle of Beaverton, rather than pay taxes to the city? The state legislature wrote special exemptions for his company to mollify him.

Don't let the door hit you on the way out, Phil.

daveg & snards:
The changes I would like the legislature to implement are certainly not a new tax as in “sales tax”. How about the old fashioned way of doing it by cutting the fat. I would propose rules that would mandate funding of education, public safety and human services first. I cringe every time I hear the budget has been cut to bare bones. Let’s let PERS retirees have the same retirement age as Social Security beneficiaries excepting fire and police that have physical requirements. Is there any reason a desk jockey working for the DMV should retire at 55 with full benefits? Just pension and medical benefit reform would cut hundreds of millions from the state budget. Getting rid of the energy tax credits, a whole bunch of phony do nothing commissions would save countless more millions. We could cut DAS in half and it still would be over manned. I could go on and on, but Jack would have a fit me using up all the space.

"Remember Chinese solar-panel maker Suntech that Kulongoski and Sam were courting for a long time to come to Oregon."

Heck, it only took $12M worth of tax credits to get SOlarWorld here - And they sold those to WalMart for $8M!!!

I am in total agreement with you John, but also realistic. We live in Oregon, not Texas. Where do you think we'll be headed once we elect Kitzhaber? Certainly not down the path you suggest. His idea of a pay freeze is to match employee PERS contributions. We're already on the California path without possibility of recovery because we lack critical mass and private sector investment. Our only hope will be a full state bankruptcy, one that will force the changes you suggest.

daveg:

You are correct. Lets form a mutual admiration society.

John and Dave, we are in agreement. I think that if these measures fail it will face the state's "hard look" now rather than later.

When Oregon becomes California, I will be in Boise. When Idaho becomes Oregon becomes California, I will be in Alaska. When Alaska becomes California, I will finally be forced to live in Texas or somewhere like that. Though I think Alaska can hold out until after I'm gone.

"Montana, The Last Best Place."

imagine the cost of a new campus elsewhere. Not going to happen!

You don't have to move the campus (Nike or OHSU) to change your corporate headquarters and avoid the gross receipts tax.

Exactly, daveg. One example is the Kuni automotive group, now headquartered in Vancouver, Washington.

Those of you thinking this is about Phil's personal finances are missing the point.

Phil's got more money than he knows what to do with.

He's giving it away by the hundreds of millions.

This isn't about him saving money on taxes.

It's about him telling the voters in this state, from someone who's got immense business acumen and credibility, that these are not good measures for a state that desperately needs to attract business/jobs/investment and will probably do the opposite.

For those of you who are all "good ridance Nike" You are ignorant and you really should learn something before making asinine comments on topics you know nothing about.

Nike employs 7000 people in high-paying, high-skill jobs in Oregon...beyond the $80-100 mil that adds in state payroll taxes, they donate tremendous amounts of money and time to the community - both the company and the employees. And, these are your neighbors and friends.

Try driving from there to Beaverton at 8:00 in the morning. And explaining to the world press why you're the world's greatest Duck fan but you live in Husky country. I'll agree that Oregon has a lousy, lousy business reputation, but Phil Knight's not moving.

Jack, think about that.

He really doesn't have to "explain" anything to anyone, does he? You, of all people, should be able to grasp that, should he decide that he's "had enough", he's more than able to act on principle and exit - stage left, if that's what he wants to do. Most of us can't tell the "boss" to shove it - but many of us would like to.

Money can't buy happiness, but it sure as hell is liberating in that way.

It truly is a testament to Oregon's failed tax policies that we're all here arguing about the fate of Oregon's most recognized employer.

Go 66 and 67! If we're going to run it into the ground, let's do it right!!!

He really doesn't have to "explain" anything to anyone, does he?

He likes to huff and puff, and usually it gets results. Remember when the kids at the U of O started acting up about the sweatshops, and Phil scared the poop out of Dave Frohnmayer? This time he's dealing with the public employee unions. Guess what? Those unions don't listen to anybody. He's lucky they aren't making more trouble for him than they are.

Jack, don't forget that the unions gave Boeing three times more trouble than Nike. They moved. And so did many of the factories of the auto industry to non-union states. Go for it, Oregon Unions! Make our day.

It truly is a testament to Oregon's failed tax policies that we're all here arguing about the fate of Oregon's most recognized employer.

Providence is Oregon's largest employer. Intel is a very close second (often the most recognized, and Portland's largest employer).

Nike? Not even in the top 5, in either economic impact or number of employees.

And Nike, like most international corporations, benefits from Oregon's "single-sales" law--meaning they only pay Oregon taxes on profits of sales *in Oregon*. Nike lobbied heavily for this rule, because it saves it dozens of millions in state taxes every year.

Measure 67 will complicate that benefit. Is it any wonder that Phil Knight would lobby heavily and publicly against it, attempting to make it about "jobs" and "the little guy"?

Eco,

Do you really think Nike and its executives will take a pay cut to absorb those added taxes?

Will they either (a) pass the cost, however great or small, to the consumer or (b) just decide not to hire a team of new designers or other employees?

It is about the "little guy," because many of those with the money who will get the biggest hit are in the position to pass it right along. Trickle-down economics if I've ever seen it.

Do you really think Nike and its executives will take a pay cut to absorb those added taxes?

No, they'll pay them, just like they do in other states (and countries).

Will they either (a) pass the cost, however great or small, to the consumer or (b) just decide not to hire a team of new designers or other employees?

You do realize just how minimal the potential added cost for Nike is, don't you? And that the majority of their sales are made outside the USA (about 65%)?

^^^ Yeah, but when the CFO gets hit with a personal tax of $100,000 or more, don't you think he'll find a few underlings to cut off the payroll to cover it? Yeah, you are so right that "they'll (the execs, that is) pay them." I'm sure nobody else will get stuck holding the bag.

Nike and other large companies will do the same thing on a different scale.

It isn't just THIS new tax. More importantly, it is the political unintelligence and lack of fiscal discipline in Salem. This is only the next of many times the local government will look to taxes as the one and only source to get their books in order.

Jack's other post about the momentum of an increasing government payroll is a scary sentiment, but a very real one.

it is the political unintelligence and lack of fiscal discipline in Salem.

I agree.

Jack's other post about the momentum of an increasing government payroll is a scary sentiment, but a very real one.

Yes, but it's only part of a larger trend. Income disparity is a nationwide phenomenon--the poor are getting *way* poorer and the rich are getting *way* richer. So, the middle class is disappearing at an alarming rate.

And without a solid middle class to shoulder its traditional tax and consumption burdens, and the poor with ever less money--who pays the taxes?

Providence is Oregon's largest employer. Intel is a very close second (often the most recognized, and Portland's largest employer).

Private employer maybe. The state is the largest employer in Oregon. Over 50,000 the last time I checked.
And I thought OHSU was the largest employer in Portland? Does Intel even have offices in Portland?

I think that Phil Knight should take his company right to Texas! Texas has the number 1 state economicly in the union! People in California are flocking there as well! This state of Oregon is full of idiots!

There's been waayyy too much talk about current industries leaving the state, and not enough talk about future industries coming to the state and making Oregon its home. Who the hell cares about maintaining current companies/employment levels when nobody is even hiring anymore? There's no jobs anyways. We need new jobs, not old ones.

It might be a stretch that companies just pick up and leave, but take the case that migrating companies and industries may be looking for future sites in Oregon due to the current global economic shake-up.

Oregon *could* have positioned itself above and beyond other states in gaining new business, but now we will probably not see much leverage from a big-time employer above any other state for a variety of reasons.

People need to ask themselves this: Will these current measures that passed entice new companies to take root in Oregon knowing the climate that Oregon citizens and Gov't gives off to businesses?

I'll answer that: N...O...

They'll, unfortunately, look to the Southwest (apparently people look for jobs over lifestyle -- which I feel is unmatched in Oregon and Portland in particular).

I believe Oregon could have some of the best business and income taxes in the country, while still maintaining very high (higher than we have now) land-use and growth regulations. Make the choice to come to Oregon a no-brainer, and make the growth that occurs from industries sustainable through logical (non-punitive) regulatory bodies.

Short-term gain over long-term progress is all these measures mean. Rock on.

ecohuman:"Yes, but it's only part of a larger trend. Income disparity is a nationwide phenomenon--the poor are getting *way* poorer and the rich are getting *way* richer. So, the middle class is disappearing at an alarming rate."

People are getting poorer because there's no jobs. Rich people provide jobs. The middle class is disappearing because companies that provide careers (not big box "careers", obviously) are not investing in our state.

Whereas you go north and Washington has how many Fortune 500 companies?