Intel Spending $6B Upgrading Israel Manufacturing Plant

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
Intel has brokered a deal with Israel to spend $6 billion upgrading its manufacturing plant there in exchange for tax breaks and other incentives.

Intel has negotiated a deal with the Israeli government under which the company will spend $6 billion on upgrades to its chip fabrication plant in Kirya Gat, the country's finance and economy ministries announced Monday. In turn, Israel will grant Intel a total of $300 million over five years. In addition, Intel's corporate tax rate will be set at a lower-than-normal 5 percent for 10 years.
Click to expand...
 
Thank god they got the tax breaks, I was worried Intel would go under.
 
Its insane how Intel basically pays no taxes in Israel, they don't even pay that 5% company taxes they blackmail the government for. (and its normally 25% for 'regular' companies)

and lets be honest , they wont leave - where else can they pay near-third-world wages and get first world level employees?...

p.s
you`ll also notice there is no 'made in Israel' Intel products- they ship the die's to Malaysia etc. to be packaged and packed , meaning they don't even need to pay much taxes as its lower value good than full product that is shipped out.


just saying...
 
T_A said:
Its insane how Intel basically pays no taxes in Israel, they don't even pay that 5% company taxes they blackmail the government for. (and its normally 25% for 'regular' companies)

and lets be honest , they wont leave - where else can they pay near-third-world wages and get first world level employees?...

p.s
you`ll also notice there is no 'made in Israel' Intel products- they ship the die's to Malaysia etc. to be packaged and packed , meaning they don't even need to pay much taxes as its lower value good than full product that is shipped out.


just saying...
Click to expand...
Yup, and I'd do the exact same thing if I was the Intel CEO. Exact.
 
T_A said:
Its insane how Intel basically pays no taxes in Israel, they don't even pay that 5% company taxes they blackmail the government for. (and its normally 25% for 'regular' companies)

and lets be honest , they wont leave - where else can they pay near-third-world wages and get first world level employees?...
.......
Click to expand...

so the government using threat of force to take money from individuals and companies is OK... but a business using leverage to keep more of their lawfully acquired earnings is blackmail?
 
So if Israel decided not to give Intel tax breaks and other incentives were they not going to upgrade anything? They likely would have done it anyways.
 
BryanSTG said:
So if Israel decided not to give Intel tax breaks and other incentives were they not going to upgrade anything? They likely would have done it anyways.
Click to expand...

they would have invested money elsewhere... new mexico, arizona, ireland, or oregon.
 
spintroniX said:
so the government using threat of force to take money from individuals and companies is OK... but a business using leverage to keep more of their lawfully acquired earnings is blackmail?
Click to expand...
Taxes fund things like roads, drinking water, police, etc. Intel prospers by being able to operate in a places that have these things, which generally help civilization. The alternative to the threat of force in enforcing taxes is only rich people having these things while everyone else essentially lives like savages.
 
tumblr_inline_nbk8lz24B01raprkq.gif
 
tetris42 said:
Taxes fund things like roads, drinking water, police, etc. Intel prospers by being able to operate in a places that have these things, which generally help civilization. The alternative to the threat of force in enforcing taxes is only rich people having these things while everyone else essentially lives like savages.
Click to expand...

Exactly. Companies evading taxes while the poor and middle class can't is a moral crime. Everyone benefits from the government, everyone shouldn't be exempt unless they don't have a job.
 
Edit: No one should be exempt from them unless they don't have a source of income. *
 
tetris42 said:
Taxes fund things like roads, drinking water, police, etc. Intel prospers by being able to operate in a places that have these things, which generally help civilization. The alternative to the threat of force in enforcing taxes is only rich people having these things while everyone else essentially lives like savages.
Click to expand...

yes... only government can provide these things. We could never figure out how to have roads or clean water if it weren't for government.
 
JaiWebb said:
Exactly. Companies evading taxes while the poor and middle class can't is a moral crime. Everyone benefits from the government, everyone shouldn't be exempt unless they don't have a job.
Click to expand...

This isn't tax evasion though. The government decided to give a company tax break when they believe the other benefits such investment brings outweigh the tax itself. These company create job opportunities, and the nation do benefit from income taxes. You can tax anyone if they do not have a job to begin with. So it's a win situation for everyone. People have jobs, they are able to pay taxes, etc.

There's a reason why gov offer tax breaks. They wouldn't do it if they stand to lose out at the end of the equation.
 
spintroniX said:
yes... only government can provide these things. We could never figure out how to have roads or clean water if it weren't for government.
Click to expand...
Well you say this sarcastically, but I'm only envisioning two alternatives to the government commissioning publicly available drinking water:

1. Someone selling it for-profit, which is rather monstrous considering everyone needs it to survive and water doesn't really belong to anyone. That would be discriminatory against the poor and immoral.

2. Some utopian existence where everyone cooperates and is on the same page, so no sort of government is actually needed since everyones' interests are aligned. These don't really work beyond small communes.


This isn't tax evasion though. The government decided to give a company tax break when they believe the other benefits such investment brings outweigh the tax itself. These company create job opportunities, and the nation do benefit from income taxes. You can tax anyone if they do not have a job to begin with. So it's a win situation for everyone. People have jobs, they are able to pay taxes, etc.

There's a reason why gov offer tax breaks. They wouldn't do it if they stand to lose out at the end of the equation.
Click to expand...
Well technically you're right, it's tax avoidance, not evasion, the latter being illegal, the former being something only the wealthy can do in a meaningful way. Of course Israel stands to benefit by the deal, but it just shows how the corporation has more power than full countries when it's essentially the country that has to accept Intel's demands, not vice-versa. This may not seem like a big deal, but next time you see unemployment rise or wages fall in USA, where Intel is headquartered to begin with, stuff like this is pretty much directly at the other end.
 
NY started doing that, no taxes for 10 years to lure companies there. Course once they insert $$ and get established NY will probably hit them with a 40% tax and they will invested to the point they could take a huge hit to leave.

It looks like their fab in Israel is going to be the most productive and cost effective after this upgrade.
 
Hornet said:
This isn't tax evasion though. The government decided to give a company tax break when they believe the other benefits such investment brings outweigh the tax itself.
Click to expand...
It should be illegal to do so.

These company create job opportunities, and the nation do benefit from income taxes. You can tax anyone if they do not have a job to begin with. So it's a win situation for everyone. People have jobs, they are able to pay taxes, etc.
Click to expand...

They can do this and pay their taxes, too. The rich are getting richer and the poor poorer by this flawed thinking. They shouldn't receive tax breaks I can't get when I'm living month to month.
There's a reason why gov offer tax breaks. They wouldn't do it if they stand to lose out at the end of the equation
Click to expand...

There's a reason governments go to war, too, for the rich to get even richer. I don't care, it should be illegal.
 
Jews~

Intel cores, made with 100% middle eastern blood sweat and tears ...

and repackaged in malaysia !!
 
tetris42 said:
Well you say this sarcastically, but I'm only envisioning two alternatives to the government commissioning publicly available drinking water:

1. Someone selling it for-profit, which is rather monstrous considering everyone needs it to survive and water doesn't really belong to anyone. That would be discriminatory against the poor and immoral.

......
Click to expand...

Everyone needs shelter and you will survive longer without water than you will without shelter. Is selling housing for a profit therefore monstrous and evil?
 
JaiWebb said:
......
There's a reason governments go to war, too, for the rich to get even richer. I don't care, it should be illegal.
Click to expand...

you realize what you're saying is internally inconsistent?

when you're saying "it should be illegal" - you're saying that a group with a monopoly on force should use force to prohibit a certain activity.

The existence of a group of people with a monopoly on violence will ALWAYS lead to injustice, as it is an unjust institution.
 
spintroniX said:
The existence of a group of people with a monopoly on violence will ALWAYS lead to injustice, as it is an unjust institution.
Click to expand...

Then burn it to the ground and start over until we get it right.


you realize what you're saying is internally inconsistent?
Click to expand...

Not when a government actually listens to its citizens.

when you're saying "it should be illegal" - you're saying that a group with a monopoly on force should use force to prohibit a certain activity.
Click to expand...

The groups with the monopoly change, in that change, people get change.
 
What the fuck is with all the uproar and hate over this? You realize that their Israel facility is one of their very few non-US fabs, right? They have 3 in Oregon, 3 in Arizona, 2 in New Mexico, and 1 in Massachusetts. 9 of their 12 fabs are in the US. The remaining 3 are in Israel, Ireland, and China.

Also they do indeed assemble chips in Israel. They have assembly/test facilities in the US, Israel, Costa Rica, China, Malaysia, and Vietnam.
 
JaiWebb said:
Exactly. Companies evading taxes while the poor and middle class can't is a moral crime. Everyone benefits from the government, everyone shouldn't be exempt unless they don't have a job.
Click to expand...

No, the government benefits from everyone. Government generates hardly anything. Government is funded by taxes collected. Those funds are what are distributed for infrastructure. That infrastructure is built and or funded at the state/local level. There are very few federal infrastructure projects. Either way, it is we, the people that fund government. Not your idea that everyone benefits from government. You have it backwards. In effect, the US should be a tax haven, not a tax hell. The idea that Intel sought a better tax position outside the US is an indictment of the tax structure in the US, not from how Intel negotiates these deals.
 
Methadras said:
No, the government benefits from everyone. Government generates hardly anything.
Click to expand...
You can play word games all day but the power resides with the government, not the people. Their guns are pointed at you and not the other way around. The government fucking owns your ass, you're their property. You owe them taxes, they don't owe you shit.


Government is funded by taxes collected.
Click to expand...

You say it like you had a choice in the matter...lol.

Either way, it is we, the people that fund government. Not your idea that everyone benefits from government. You have it backwards.
Click to expand...

No, you have it backwards. We the people have no choice in our taxation and are forced into it by gunpoint, we have no power in the game while it's being played, any power you think you have is an illusion of power. To verify this, decide you'd like to pay 50% less in taxes and see how that goes for you. I'll wait.


In effect, the US should be a tax haven, not a tax hell.
Click to expand...

The top 10 (or more) corporations pay no taxes in the US. That is a haven for the rich. Do you know any normal people not worth billions having such luxuries. Go on, keep telling me how nice your masters treat you.
 
JaiWebb said:
You can play word games all day but the power resides with the government, not the people. Their guns are pointed at you and not the other way around. The government fucking owns your ass, you're their property. You owe them taxes, they don't owe you shit.
......
Click to expand...

You... I like your style.
 
Nice, as they left Costa Rica citing reason of electricity cost getting too high and not getting enough tax breaks and yet they got $6billion to spend there...
 
spintroniX said:
yes... only government can provide these things. We could never figure out how to have roads or clean water if it weren't for government.
Click to expand...

This. The world would be a lot better if EA Games and Comcast were the ruling powers instead. We could pay a small additional fee for more than one gallon of water per day delivered at a rate faster than a small trickle and there'd be a DLC expansion for police investigators to actually keep someone who murdered your husband in prison instead of releasing them after the trial. :)
 
Elon Musk gets a $1.25B deal from Nevada, and it's a GREAT deal

Intel gets $300M deal from Israel, and people are in an uproar

:confused:
 
Bad reporting is bad.

It's 6 billion worldwide. I live in hillsboro,oregon. I hear intel people talk and know quite a few who work there.
 
CreepyUncleGoogle said:
This. The world would be a lot better if EA Games and Comcast were the ruling powers instead. We could pay a small additional fee for more than one gallon of water per day delivered at a rate faster than a small trickle and there'd be a DLC expansion for police investigators to actually keep someone who murdered your husband in prison instead of releasing them after the trial. :)
Click to expand...

EA and comcast are government, not free market, creations. Nice attempt at trolling, though
 
spintroniX said:
Everyone needs shelter and you will survive longer without water than you will without shelter. Is selling housing for a profit therefore monstrous and evil?
Click to expand...
You're coming across like a true-believer libertarian, so let's cut to the chase, I have a question for you where your answer will save us a lot of time:

You have eaten the belladonna berry, which is poisonous. I have the calabar bean, which is the antidote to that. I come across you, but I refuse to give it to you, because you have nothing to offer me in return. Am I being unethical?
 
tetris42 said:
You're coming across like a true-believer libertarian, so let's cut to the chase, I have a question for you where your answer will save us a lot of time:

You have eaten the belladonna berry, which is poisonous. I have the calabar bean, which is the antidote to that. I come across you, but I refuse to give it to you, because you have nothing to offer me in return. Am I being unethical?
Click to expand...

why the fuck would I eat belladonna berry?
 
tetris42 said:
It's irrelevant to the question, let's say you ate one by mistake thinking it was edible.
Click to expand...

the question itself is irrelevant because it is contrived.

Either you have a valid counter argument to the non aggression principle (and the logical consequences there of), or you don't.
 
spintroniX said:
EA and comcast are government, not free market, creations. Nice attempt at trolling, though
Click to expand...

Horse blinders. :p

Free markets are competitive. Someone eventually wins. Thus, EA and Comcast exist and are worse.

Notably, the Koch brothers liberally use government justice systems to their benefit as evidenced in the lawsuit one of those morons launched after he was duped into spending lots of money on fake vintage wine.
 
CreepyUncleGoogle said:
Horse blinders. :p

Free markets are competitive. Someone eventually wins. Thus, EA and Comcast exist and are worse.

Notably, the Koch brothers liberally use government justice systems to their benefit as evidenced in the lawsuit one of those morons launched after he was duped into spending lots of money on fake vintage wine.
Click to expand...

I'm sure you think there's a point somewhere in there, but I sure don't see it.

corporations are created and protected by laws - they are purely statist creations. Comcast and EA are two examples of mega corporations, given varying degrees of monopoly power - they therefore have nothing to do with a free market
 
Fine, we'll do this the hard way. My basic problem with libertarian reasoning is the end result comes across as sociopathic, caring more about property value than human lives. I care about utilitarian good, trying to maximize happiness (which includes base needs) for the greatest amount of people in a sustainable way. My understanding of the libertarian way of thinking tends to champion property value over the suffering of others, which I see as a veiled form of oppression and runs counter to utilitarian good.
 
BryanSTG said:
So if Israel decided not to give Intel tax breaks and other incentives were they not going to upgrade anything? They likely would have done it anyways.
Click to expand...

This is a hotly debated issue, In this case it is possible Intel would just do it somewhere else. But in some cases it makes no sense. There was recently an article about movie studios doing this for movie filming. A particular studio was filming a movie about New York, lol well really were they going to film the movie in Detroit about New York when the city was a major component of the story? But anyhow NY still fell for it and gave them a big subsidy.
 
You must log in or register to reply here.
Back
Top