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OPINION
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Citizen Intel
Just what is the semiconductor giant's commitment to Oregon?

It should have come as no surprise last month when Intel attached a condition to its proposal to upgrade the company's Washington County facilities: approximately $100 million in tax breaks.

No surprise because everywhere Intel has facilities, both in the United States and abroad, it has demanded and won substantial tax concessions.

No surprise because Intel rarely hesitates to flex its muscle. This is, after all, a company that is about to go to trial against the Federal Trade Commission over charges of unfairly using its monopoly position.

Our first reaction to Intel's request for a tax break was to tell the company where it could shove its motherboards. But it's not that simple. You can't overlook the fact that Intel has become the most important economic engine in the state. It is Oregon's second largest employer (with 11,000 workers) and its biggest income-tax payer. In addition, its operations have a mostly benign impact on our environment. Intel's presence in Oregon--and the prospect of its continuation--is one of the principal reasons the Silicon Forest has a bright future.

There are, however, other ways a company can benefit a community--in its willingness to show political leadership, engage in the civic issues of the day and step forward at times of crisis.

Measured against these criteria, Intel falls short.

Last week the Coalition for School Funding Now! descended on Salem to lobby for adequate school funding. This year's effort is headed by Ken Thrasher, chief administration officer for Fred Meyer, and Larry Ogg, president of Bank of America in Oregon, and has received financial support from companies all across the state.

Intel is not one of them.

Intel publicly calls for better-educated students--the company will certainly benefit from better schools--yet it remains absent from what is arguably the most crucial debate in Salem. At the same time it is aggressively pursuing a tax break.

In recent years, the company has improved its public profile. But there are many leaders in Oregon who will privately acknowledge that this $26 billion California-based company has miles to go. Like many others in the high-tech industry, Intel still operates with the selfish mind-set of a start-up--even though it has become one of America's more stable companies, a firm that dominates its competition in a very healthy industry.

It may be difficult for a company that aggressively pursues shareholder value to understand that its continued operation here isn't just about money. It's also about establishing roots in a community, giving a damn about social policy and exercising the same sort of leadership at the civic level as it does in its own industry. If Intel understood this, a tax break might even end up being a bargain for the people of Oregon.


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Willamette Week | originally published February 24, 1999

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