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Monday, December 10, 2012

Kitz's big priority: a tax handout for Uncle Phil

This is so pressing that it couldn't wait a month or two? Wow. Just wow.

Comments (26)

This is so much shizz. Nike ain't going nowhere ever, and it's sole commitment is always to the bottom line. Oh, and whatever weird thing phil worships in the inner sanctum. 12K new jobs? Right.

So, the question from here is: what is the tax handout for really? Maybe a promise to support K's education agenda and keep his mitts off UO?

It smells faintly Goldschmidtesque. What's in it for the Republicans is anybody's guess. It's strange indeed.

12,000 more jobs here in Oregon in eight years? Doing what?

Really quite simple:

Nike is looking to expand, and has those expansion plans dangling in front of several localities. Like any business would do, it is shopping for the best deal.

Would Nike move their headquarters elsewhere? Not likely. Would they expand in other areas? Of course they would, if provided the right incentive, and if the locale is attractive enough to pull in the world-class talent it would seek.

I suspect these aren't manufacturing jobs, and more likely to be above the average pay level.

An interesting game of chicken.

At least Nike's not promising to use the tax rebates to manufacture green solar powered shoes.

There would be an estimated 2,900 jobs in construction for campus expansion. Also included in the 12K jobs is undetermined "indirect employment". Clearly, this isn't Nike expanding it's operations as much as expanding it's waistline.
Kitz is going glassy eyed over *potential*. Maybe that word should be added to the gag list!

Agreed, Mike. I've been watching this game for years in many different states, and it's all the same. Nike won't move unless the tax deal is really good, and you can't blame it for taking free money being waved in front of its face. In fact, this suggests to me that Kitzhaber is being preemptive in his butt-kissing, because the one fear he probably has is not having his tribute to offer when other states start offering. (This is what happened to Wisconsin when Kimberly-Clark held out its hand in 1985 and the state pleaded poverty. KC promptly moved to Dallas because of the massive Texas tax writeoffs, and those writeoffs keep getting offered every ten years or so to prevent KC from moving. The local HQ is a figurehead only, and all of the real decisions are still made in Neenah, WI, literally down the street from where my parents live. In the process, KC gets kickbacks from both Texas and Wisconsin not to move current facilities, so it's good money while it lasts.)

As I understood what Kitzhaber said today, Nike simply wants assurances that certain tax laws affecting them that are in place now won't be changed after they make their commitment to make a huge new investment and hire a significant number of new employees.

I assume this is primarily directed at the single sales factor but could also include corporate tax rates generally and maybe availability of certain tax preferences already in place.

I believe what Kitzhaber wants the legislature to do is give him the power to find the state to continue certain tax treatment for companies that make certain commitments relating to investment and job creation.

If I'm right, Jack, your headline is at best misleading. I also think this is a no-brainer for the State of Oregon.

Isn't this (again) part of the same "Sweetheart Deals" giveaway competition you posted about just last week? One of them must think it's urgent.

Apparently Chairman Knight has rethought his notion to leave the state if/after Measures 66/67 passed. Those measures have hardly "saved" the state budget. He may want to protect himself against the possibility of more such. Since the Democrats are virtually guaranteed not to wrestle the PERS dragon to the mat. Or probably barely try.

I'm with Nike on this one.

I assume this deal has been in the works a while.
Never ask the question to which you do not already know the answer. This is a done deal.
Nike splits 2 for 1 and adds an extra dividend today.
They have been working on a new machine that knits the shoes. I suspect the shoes for North America will be made here very shortly.

The Republicans should not plays Grandpa Kitz's game.

Grandpa Kitz get to say he kept Nike here and claim all 12,000 jobs whether they show up or not.

The lefties Democrats can safely vote against it an campaign in to eternity as the anti-corporate-welfare party.

The Republicans then get painted as the party of Nike and corporate welfare.

No thanks, Governor. This should be decided by the new legislature.

As I understood what Kitzhaber said today, Nike simply wants assurances that certain tax laws affecting them that are in place now won't be changed

Lots of businesses would like those assurances. But none get them. As my headline indicates, Nike wants special treatment.

Wow. Maybe next Unka Phil wants the first option to purchase UO outright, including all the land and buildings. Just think. Club Nike right on the UO (or UN) campus.

Personally, I'm hoping this means a sales tax is off the table.

"As my headline indicates, Nike wants special treatment."

Your headline says "a tax handout for Uncle Phil."

As near as I can tell, there is no tax handout. They're just trying to get Oregon to commit to keep the same rules they are touting now to entice Nike to invest and create jobs here. And as an act of good faith, Kitzhaber is asking the legislature for the authority to make that commitment.

Which, by the way, the proposed legislation will apparently make this same deal available to any business that creates at least 500 new jobs, invests at least $150 million and meets certain wage standards--all of which is much less than what Nike is planning to do.

I get the feeling that this is part of a deal that commits Nike to stand on the sidelines during the upcoming "tax reform" fight(s) in Oregon.

Gimme tax break. Love you long time.

I don't think either the governor or the legislature can bind a future legislature under these circumstances. However, if the taxes in question are property taxes abated under some sort of enterprise zone scheme, that is contractual and likely could not be impaired once relied on.

Pardon my venom, but I'm damned tired of the morons in the "media" that passes for news delivery and analysis here. Nike employs 44,000 people globally, including 8,000 in Washington County, home to its world headquarters in the Portland suburb of Beaverton. The company said its Oregon workers make an average wage of more than $100,000.
Average. Try looking at the median salary for some meaningful information. If you average Phil and the top exec's earnings with the rest of the workers there you get a beautiful number. "Oh, $100,000 a year average -- let's be nice to the man! Maybe Junior can get a job there!" You would get just as nice a number if you averaged it with their slaves overseas. Averages are meaningless
The papers and broadcasters do the same thing with Intel's numbers. Feh. Lickspittle labdogs.
The O is gonna' continue to shrivel into nothingness and the broadcasters will sell their precious spectrum to the cellphone companies and walk away with a fistful of cash. With damned few exceptions of the decent reporter and the intelligent columnist they have long ago become irrelevant except as purveyors of puffery and hucksters of cheap advertizing. Good riddance! [rant:off]

Rock on, Old Zeb!

"it couldn't wait a month or two?"

Nope. Phil wanted to get it out of the way before the bowl season.

I can kinda understand this, IF it weren't a NIKE only deal, however, if the bar is a $150M investment, it's probably only going to affect Nike and Intel.

Which makes us more dependent than ever on just two employers. In turn it gives them a lot more bargaining power.

Why do I get the feeling that if it was a Republican governor trying this, that there would be a cloud of pepper spray over the Capitol Mall in Salem right now from the State Police beating back all the Occupy protesters?

dg asks

"12,000 more jobs here in Oregon in eight years? Doing what?"

Assembly line work, they are going to hire local workers to lace up all the $130-$150 dollar tenny runners made in Twain for one dollar and seven cents so they can put the "made in America" tag on them.

"Which makes us more dependent than ever on just two employers. "

The majority of jobs in Oregon are in small businesses.

WOW...those 12,000 jobs coming at us should blend well with the 10,000 OHSU Biotech jobs, uh, er uh, oh,sorry.

So all this talk about getting a more reasonable minimum corporate tax (what is it now, like $1000?) is too high for the big boys to pay?

And the Gov wants authority to take taxing legislation away from the legislature because there are too many to pay off and slap around?


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