McCullagh reports, “The U.S. legal environment has become so hostile to business, Otellini said, that there is likely to be ‘an inevitable erosion and shift of wealth, much like we’re seeing today in Europe–this is the bitter truth.’ …Otellini singled out the political state of affairs in Democrat-dominated Washington, saying: “I think this group does not understand what it takes to create jobs. And I think they’re flummoxed by their experiment in Keynesian economics not working.”
“Since an unusually sharp downturn accelerated in late 2008, the Obama administration and its allies in the U.S. Congress have enacted trillions in deficit spending they say will create an economic stimulus — but have not extended the Bush tax cuts and have pushed to levy extensive new health care and carbon regulations on businesses,” McCullagh reports. “‘They’re in a ‘Do’ loop right now trying to figure out what the answer is,’ Otellini said. As a result, he said, ‘every business in America has a list of more variables than I’ve ever seen in my career.’ If variables like capital gains taxes and the R&D tax credit are resolved correctly, jobs will stay here, but if politicians make decisions ‘the wrong way, people will not invest in the United States. They’ll invest elsewhere.'”
McCullagh reports, “Take factories. ‘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.”
“The rub: Ninety percent of that additional cost of a $4 billion factory is not labor but the cost to comply with taxes and regulations that other nations don’t impose,” McCullagh reports. “(Cypress Semiconductor CEO T.J. Rodgers elaborated on this in an interview with CNET, saying the problem is not higher U.S. wages but anti-business laws: ‘The killer factor in California for a manufacturer to create, say, a thousand blue-collar jobs is a hostile government that doesn’t want you there and demonstrates it in thousands of ways.’) ‘If our tax rate approached that of the rest of the world, corporations would have an incentive to invest here,’ Otellini said. But instead, it’s the second highest in the industrialized world, making the United States a less attractive place to invest–and create jobs–than places in Europe and Asia that are ‘clamoring’ for Intel’s business.”
Full article here.
[Thanks to MacDailyNews Readers too numerous to mention individually for the heads up.]
Germany has taxes that are as high or higher than the US, yet they manage to retain manufacturing jobs. Maybe if CEOs and the rest of upper management did not feel it was necessary to have salaries 400X that of the average worker as opposed to 40X as was the case only a few decades ago, we could afford to manufacture in the US?
@John C. Randolph
If you actually read Paul Krugman’s NYT column, you would know that he predicted and identified the causes of the Sept. 2008 crash at least two years before it happened. Had a few politicians taken note, we might not be in the present situation.
“Obama is a colossal stupidfsck… This Kenyan Muslim Community Organizer (KMCO, aka stupidfsck)… Which of you fsckups voted for this assclown? Fessup, morons.”
Writing from outside your fair country, I must say I do enjoy a good, rational piece of learned political debate. (Just in case — That’s learn-ed, in this usage, not learnd.”
“Okay conservatives, a little challenge for you: Give me a specific example of a change in tax code that has occurred since Obama took office that makes things worse than when Bush was in office.”
Ahhhhh! A rational point.
It is noteworthy that one side of this debate does seem to lean heavily towards vitriolic diatribe, while the other puts forward actual ideas.
By the way, conservative lot, when exactly do you think the world’s economy crashed? (Clue, it was before Obama.) Do you have ANY understanding of why? You may like to read this article… http://www.dailywealth.com/506/How-AIG-s-Collapse-Began-a-Global-Run-on-the-Banks.
maccam,
“Maybe if CEOs and the rest of upper management did not feel it was necessary to have salaries 400X that of the average worker as opposed to 40X as was the case only a few decades ago, we could afford to manufacture in the US?”
Sounds great, but not supported by basic math. You must be a Liberal.
Seems like he is seeing the wintel model start to shrink in the future.
The tax cuts were in place during the Bush administration….I dont recall there being any significant job growth then. So what makes Intel’s CEO think a Tax cut is gonna make things better?
The simple fact is the middle class stop buying because people were scared that they may loss thier job the next week. Meanwhile companies were laying people off in droves all the while banking the tax cuts. So i guess he wants another tax cut because the cost of inflation has canceled the last one out!
‘Keynesian economics not working’
Yeah, well: Tinkle-Down Neo-Con-Job Economics got us into the ongoing Bush Depression!
Third option? How about a new US revolution where we tear down the Corporate Oligarchy that’s screwing over citizens with one hand and taking government bailouts with the other, replacing it with serious, honest capitalism!!!
“Okay conservatives, a little challenge for you: Give me a specific example of a change in tax code that has occurred since Obama took office that makes things worse than when Bush was in office.”
That’s not the problem, straw-man.
The problem is the threat of Obamacare going into effect (cost), the threat of Cap and Tax going into effect (cost), the looming expiration of the Bush tax cuts (cost), and the threat of whatever other misguided socialist crap they might dream up.
Business hates uncertainty. They are not and will not hire in the climate that Obama and the Dem-controlled congress have fostered.
Things will begin to turn around on November 2nd, if the Republican gains are deemed enough to thwart Obama’s Liberal agenda. If it’s possible to gut or defund Obamacare, unemployment will decrease and the economy will rebound that much the quicker.
Mark my words.
“Sounds great, but not supported by basic math. You must be a Liberal.”
Math geniuses like Reagan got us into this mess. Idiocy in generalization- as if all “liberals” agree on everything, including economics. Capitalism is far from perfect. greed trumps math, party affiliation, and morality. Even intelligence. A lot of stupid people looking for a single target to blame. The right, of course, choose Obama. So do the far left.
But, since I came here for Mac news and commentary, I am disappointed and, once again, staying away from these stories.
Neo-Con-Job Hyperbole:
CUT TAXES!
&
CUT THE DEFICIT!
Problem: Missing logic. Cut taxes = higher deficit, not higher government tax income. Consistently proven. Massive DUH factor.
So why is this dis-logical hyperbole consistently spewed at us via Neo-Con-Job propaganda? Read this:
http://en.wikipedia.org/wiki/Starve_the_beast
Starve The Beast = Psychopathic? Oh yes! Witness today.
1) We can’t compete with China when it comes to manufacturing. No only are their workers paid far less, they also have very lax environmental regulations and yes.. far fewer taxes. But I doubt many in the US would really advocate that we allow our heavy industries carte blanche to pollute as China does. Also keep in mind that China has hundreds of millions of people that they are just trying to pull up from the stone ages. They will be willing to tolerate things that US workers would never tolerate in order to have a steady income and assurance against starving to death if this years crop is bad. We can cut taxes to zero and it really wont make us competitive with China when it comes to manufacturing.
2) I would be all for extending the capital gains tax credit as long as it is given to people who are actually putting their money towards real investment. In other words, I’m all for giving tax breaks to money that is really an investment. Unfortunately too much of the money that pours into Wall Street is used for gimmicky shell games that really do not serve to capitalize any business endeavor and has very little benefit to society.
@ acid
“We will see how long the boom in China lasts.”
I think the boom will last longer than we want it to or desire it to. Esp as China is still holding a significant amount of US Treasury Securities. This is not going to change overnight.
http://www.ustreas.gov/tic/mfh.txt
Ottelini’s comments are telling. The tax code in this country is due for major reform and simplification. To help both individuals and businesses.
Conundrum:
Since the Neo-Con-Jobs got US into the ongoing Bush Depression, and supposedly the Obama Administration can’t get us out of it… Who exactly do we vote for to get us OUT of the ongoing Bush Depression?
Hmm?
Anyone willing to seriously answer that question?
Idea: Screw BOTH the Republicans & Democrats and come up with a SANE PARTY that knows how to use balance, logic, fiscal responsibility and fairness in an actual, factual REPRESENTATIVE GOVERNMENT. No Corporate Oligarchy allowed!
Imagine that.
“‘the next big thing will not be invented here. [Steve] Jobs will not be created here.'” What Otellini meant to say.
“I would be all for extending the capital gains tax credit as long as it is given to people who are actually putting their money towards real investment.”
Spot on! Further, I would extend that to investments that will actually benefit people in the Unites States. Many overseas investments do little to assist the U.S. And we should offer these investments a tax break?
“I would be all for extending the capital gains tax credit as long as it is given to people who are actually putting their money towards real investment.”
Spot on! Further, I would extend that to investments that will actually benefit people in the Unites States. Many overseas investments do little to assist the U.S. And we should offer these investments a tax break?
“I would be all for extending the capital gains tax credit as long as it is given to people who are actually putting their money towards real investment.”
Spot on! Further, I would extend that to investments that will actually benefit people in the Unites States. Many overseas investments do little to assist the U.S. And we should offer these investments a tax break?
“I would be all for extending the capital gains tax credit as long as it is given to people who are actually putting their money towards real investment.”
Spot on! Further, I would extend that to investments that will actually benefit people in the Unites States. Many overseas investments do little to assist the U.S. And we should offer these investments a tax break?
“I would be all for extending the capital gains tax credit as long as it is given to people who are actually putting their money towards real investment.”
Spot on! Further, I would extend that to investments that will actually benefit people in the Unites States. Many overseas investments do little to assist the U.S. And we should offer these investments a tax break?
“I would be all for extending the capital gains tax credit as long as it is given to people who are actually putting their money towards real investment.”
Spot on! Further, I would extend that to investments that will actually benefit people in the Unites States. Many overseas investments do little to assist the U.S. And we should offer these investments a tax break?
“I would be all for extending the capital gains tax credit as long as it is given to people who are actually putting their money towards real investment.”
Spot on! Further, I would extend that to investments that will actually benefit people in the Unites States. Many overseas investments do little to assist the U.S. And we should offer these investments a tax break?
@First 2010, then 2012
You’d impress me if you didn’t just regurgitate the most base of talking points spewed by the right-wing hate media.
You aren’t even 1/10th as smart as you think you are. Even Bush’s own economic advisers say his economic policies were reckless. But you will never admit that. It would require too much thinking on your part.
Some reform is needed. But my main point is that I will not buy anything Otellini have to sell – no matter where it is made – if it were not put together as a great product by Apple, no matter where or how it was put together. Between a $400 Dell/HP or $1000 Mac, I will pick the Mac every time, even if I have to wait longer to save up the money for it.
@MidWest Mac:
Running a business is not only about the here-and-now. It’s about preparing for the future- hiring, capital investment, business strategy, etc. As a part owner of a large medical practice (Ob/Gyn in Reading, Pa), we’re walking on eggshells at this point. We’re faced with:
1. An extremely expensive and overburdening new healthcare law.
2. The reality that taxes are going up, both for individuals and businesses, in 2011 and 2012, to pay for all of this deficit spending.
3. Unemployment that isn’t going to budge downward any time soon (thus effectively leaving us with fewer people visiting their docs- the majority of the healthcare bill doesn’t take effect until 2014)
These are the top three, so you can see why we’ve frozen expenditures for upgrades and equipment, and on hiring new docs and nurses. How does that help our community? We’re about to be hit with an additional 30 million new patients in our field, and we’ve got nothing with which to prepare for it.
This administration doesn’t seem to understand this, or they just don’t care. Obama and the dems have passed the biggest piece of ideological legislation since Medicare in 1965, and have also taken over an additional 1/6th of our nations economy in the process. I’d be happy to explain the real and potential effects of this new healthcare law via email if you’d like (it’s probably beyond the scope of this forum to do so here).
I’ll be joining this debate when it’s a reasonable hour in my neck of the woods. Frankly, what I’ll be saying Democrats and Republican supporters won’t be happy.
As a taste to what I’ll be saying is that the US has some painful decisions to make and they have a few years to do it. I’ll return on this matter in a few hours.