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April 16, 2006

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Thanks for writing on this. I did a write up early Sunday morning when I saw that story. While we disagree on the candidate (I'm a supporter of Lew), we do both see a huge problem here that needs to be fixed.

It makes me so mad that our family of 3 made less than $28K last year, but we had to pay $797 in state taxes. Intel will make $10 billion (yet under Oregon's new corporate tax structure will show less than $100 million), and will pay $10 in income taxes.

There's something majorily wrong there.

Here is what Betsy Hammond wront on Intel's potential 2006 "tax bill":

"Intel -- Oregon's largest employer and a company that paid $50 million a year in Oregon corporate taxes a few years ago -- will see its 2006 tax bill fall to a fraction of that amount, potentially as low as $10. Businesses in Oregon benefit from $40 million in corporate tax breaks, more than $100 million in corporate kicker credits and the final phase-in of a $40 million tax cut from a new tax formula."

I do not know what Betsy means by "(Intel's) 2006 tax bill" or why she would use such vague references about Intel to represent the effects of Oregon corporate tax policy on all Oregon corporations.

If she means 2005 taxes due in 2006, Intel gets a 36% tax credit under provisions of the kicker in addition to existing corporate tax breaks and the new tax formula. The $10 minimum is the least amount of tax Intel will pay. Intel's actual tax liability dependent upon their profits, provisions of the tax code, the kicker and other factors.

All in all a hazy analysis by Betsy and a shaky foundation on which to construct meaningful conclusions.

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