Saturday, April 02, 2005

More capital flight

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."
In contrast, Otellini pointed to Israel, which
offers a 20 percent capital grant, a 10 percent
tax rate and a two-year tax deferral. Malaysia
offers a 10-year tax deferral and Ireland offers
a 12.5 percent tax rate. Two-thirds of the most
advanced factories being built, those producing
300-millimeter chip wafers, are in Asia, Otellini

Better to look for contract work on the internet
in a field that interests you...or start your own
internet business to reach the world.

Your "employers" are leaving you, Americans.

Best to sell to the world, as they have. I've said
it here before...Sony has no plants in Japan. Soon
Intel won't have any in the uS.

Do you recognize a pattern when you see it?

Soon, Intel and many more will also leave the uS.

Now, that said, how does this all relate to this

It's all about taxes, as the article says...