SWOPblogger

You do realize that when Intel upgraded it's Rio Rancho manufacturing facilities in 2002 by spending an additional $2 billion dollars (cha ching New Mexico) the computer industry was in a completely different place then it is right now. Times change very fast in the computer industry and Rio Rancho's plant was one of Intel's many mistakes in the early 2000s.


The Pentium 4 processor, which was built in Rio Rancho, was designed to scale up to about 10 Ghz, it didn't. (Heat and power issues) Intel topped the P4 out at about 3.8 Ghz today.

Intel hemorrhaged cash for little performance gain for years until recently with the introduction of the new Core technology.

Intel will upgrade Rio Rancho's plant again sometime but right now the Rio Rancho plant is a slow footed dinosaur in a industry that is moving as fast as a New Mexico roadrunner.

2002 120nm processor (Rio Rancho)
2003 90nm processor (Rio Rancho)
2004 65nm processor (not Rio Rancho)
Q3/Q4 2007 45nm processor (not Rio Rancho)
 

unfortunately I don't understand what you are writing.

I understand the techonology industry moves at lightning speeds. And no one is saying they shouldn't keep up.

What we are saying is that, one of the poorest states in this country should not be handing out 16 million dollars in revenue bonds to a multinational corporation.

Who's helping who? And why? What are the real social benefits we get from Intel being here? And not just charity work either. How is Intel helping our state grow economically?

What it looks like to me is that they are taking our money, created unemployment and wasted a huge amount of our water resource.

I don't think Intel should leave, but I think Intel should be responsible and pay the tax breaks back.
 

You're talking about millions Intel should give back as if it's a large number. Over the past 27 years Intel has invested billions in New Mexico. Each year at least a quarter-billion dollars is paid in wages, which in turn get reinvested in New Mexico's stores and tax coffers.


It is horrible that a tiny percentage of people are losing their job at Intel, but this isn't the 1900s anymore where jobs are guaranteed for life. Without these cut backs all across the country Intel would go bankrupt and many more would be out of work.
 

My apologies. I made a mistake. It wasn’t 16 million. It was 16 BILLION.

Lets go down the line:

1993 – 2 billion in IRB’s
1995 – 8 billion in IRB’s
2004 – 16 billion in IRB’s – the biggest tax giveaway in the history of the United States.

Intel’s argument to get the IRB’s is that they are providing jobs to New Mexico. But as we see now, they are not in fact bringing jobs they are taking them away. The only reason why they got the IRB’s in the first place is because they promised the jobs.

We should also be clear that job lay-offs doesn’t mean they are trying to save a buck, what it really means is re-shifting the work force elsewhere. They still need to produce their product their market is always expanding. (MACINTOSH)

And to make the argument that Intel would go bankrupt is a total joke. As if they struggle to keep afloat. As if they live pay check to pay check, are you trying to make me feel sorry for them?

I don't buy it. They are an international corporation. They don't become that without having money and HUGE profits.

Here's the news of today that proves my point:

The European Commission has confirmed that it will be charging Intel with violating European Union competition laws by abusing its dominant position in the chip market.

How do you explain that and then not paying NM taxes to "help keep them from going bankrupt?" Makes no sense.

Intel is a dirty neighbor. When they came to NM they made it public that they would set up shop in the state that offered the sweetest tax deal. And what do you know; New Mexico won the race to the bottom. Not only that, they set up shop anyway in the other competing states where they also don’t have to pay taxes!

We’re tired of it. Intel needs to pay their taxes like everyone else.

Sandoval County neglected to put in provisions to the bonds, and now there is nothing left to show for it. Intel got what it wanted.

Still don’t believe us:

The $8 billion IRB previously (1995) given to Intel cost taxpayers a total of $568 million, as reported in the April 27, 1993 Weekly Alibi. The breakdown was:

* $441 million in unpaid property tax
* $70 million in unpaid sales tax
* $55 million in investment tax credit
* $2 million in employee training funds

This $568 million does not include unspecified additional corporate tax breaks to Intel that could not be calculated.

http://www.faceintel.com/tax$subsidizeintel.htm

…and that’s only for 1 IRB in 1995, imagine the cost of all the IRB's together. Outrageous!
 

You're right no jobs have ever been created by Intel, I remember how thriving Rio Rancho was before Intel came to town, it was great now look at it.

Albuquerque, Santa Fe, Las Cruses,and Rio Rancho all black eyes on face of New Mexico because of evil big business wanted to make a profit.

Wake up sweetheart your socialist society doesn't exist.
 

First of all, no need to call me sweetheart. I would like to continue respectful discourse.

Second of all, I'm not against companies making profit. My point is around paying taxes. And the amount of taxes they would pay would be extremely beneficial to NM and Sandoval County would it not?

Third of all, how did socialism enter the discussion? How does holding companies accountable and paying their taxes bring up socialism. Last I checked don't we do that IN capitalism now?
 

In case folks are paying attention to the comments, I'll weigh in.

For real, public monies for private profits just isn't cool. Intel is one of the wealthiest corporations in the world - top in its field. What does it really need with our tax dollars?

And it's become an entitlement to these big companies. Since the beginning, they've held up taxpayers and pitted communities against each other. New Mexico had the sweetest deal. Yes, the lowest labor costs. A tax giveaway. And cheap, yet precious, natural resources - especially once Intel applied pressure to weak politicians.

Folks ask me all the time, what would make all this worth it?

In the end, I think when most know the whole story they feel public monies should be spent on public infrastructure, services, goods and in the public interest.

So back to the question, what would make it all worth it. I think I'm starting to form an answer.

First, they'd have to put their innovation towards making sure their production process clean. The stuff they've emitted on top of the community in Corrales can't be forgotten. People are sick. It's Intel's fault.

Second, NM's children have the least access to opportunity in the country - search this blog for stories on it. While most of NM's political and economic leadership has bent over backwards for Intel, they never asked for Intel to invest in NM's children. Just as we've invested in them over the years. And not just in one high school in Rio Rancho (which SWOP should take credit for), or even in centers and schools. I mean every child. Why can't they have the best. We paid for it. A top of the line computer for every child in the state, and free broadband (fast) wireless across the state. It would be a drop in the bucket to them. It doesn't have to been intel alone - the other IRB beneficiaries can pitch in too. It's time to pay back NM for making Intel so profitable.

That brings me to talking about these profit thing. It has been put forth that profit is a human right in our global economy. It's even beyond that - it's like a super trump card right. Like it squashes all other human rights. This is a story put forth by multinationals. The international declaration of human never mentions profits.

peace,

karlos
 

Your absolutely right Karlos. I think a frank discussion on profits is a conversation we should venture to have.

It's sketchy sometimes because people write you off (like lobofanina did)because the moment you question profits or discuss a different notion of profits, then that's not capitalism therefor you must be a socialist or a communist. they never get past that.

It so clear we have different values. Our bottom line: people.
Their bottom line: profits.

I also like that you are coming up with answers. That's what we need to have, the alternative and the answer, ready to go. We know what we want, so lets get it.
 

I'm a native New Mexican who was brought out of poverty by Intel when I was 20. Intel paid for my college education. There are many other stories just like mine. Not too many options in this state for technical workers except for military/industrial jobs. If you get rid of the bonds, intel will move. there are many states and countries who want Intel to move in.
 

I can't tell you how important your story is. You are why we aren't against having intel in our community. It's one of the best jobs to have in the state. Unfortunately, your story is relatively rare. And your point about the bonds is the problem. This is one of the most profitable corporations in the history of the world. When they pit communities against each other (particularly ones that have a history of poverty) no one wins - except intel. You are the exception.

When Intel came in, they weren't promising any jobs to New Mexicans. When SWOP called it highway robbery and asked who was going to get the jobs, Intel countered with somewhere around 50% local hires as a goal. They never quite reached that goal and even went as far as changing the definition of local to make their new mexico hires look more substantial. We said, if you want these tax breaks (really what they're going after with these bonds - they don't need the money to be lent to them since they are really paying back a loan to themselves) you have to hire local people since it's their tax dollars and revenue we're dealing with.

So, in effect, your job and college education were subsidized by taxpayers (including you and your family). Now, I'm not against that. I'm glad you got a job and education. I just don't think the state's and Sandoval County's taxpayers should have subsidized it. Intel is super rich.

In the case of the last round of bonds (the largest corporate welfare package in the history of the nation), it was super over subsidizing. This was a fab that was obsolete, almost a dinosaur. They knew they were going to downsize, because this plant wasn't equipped to make the newest chips. Yet they still asked for and received the largest handout yet. So what's left? Tons of folks out of work, yet less and less tax revenue for sandoval county. And we've seen a direct effect on people's property taxes as a result of giving away the candy story to the Intel's of the world.

Anywayz, you should give SWOP more credit for your story. Believe me, Intel doesn't do things out of the goodness of their heart. They do things for profit..and good PR.

SWOP fought for the taxpayers and people of the state to get at least something out of the deal. We wish we could have gotten more. But hey, we'll take your story as proof of the value of organizing and advocacy on behalf of taxpayers and employees.
 

In response to previous comment. I agree everyone should pay their fair share in taxes including corporations. But look around you, subsidies are everywhere. Intel subsidies pale in comparison to the handouts given to Big Oil(free land to drill, military protection etc..) and numerous other things we take for granted. How do you think Intel and AMD can afford to sell advanced technology for cheap, by taking advantage of every cent they can get.

As for the shutdown fab it was actually very advanced. Lots of unknowns on that one.

As for my "subsidized" education from intel/Sandoval county. That happened before the high $$ bonds were issued. At intel you'll work your ass off to keep your job and go to school. I'd hardly call that a subsized education. It would have been much easier to just go to school full time and soak up educational handouts from the government or whoever. How about some free scholarship money from gambling revenue, maybe that would make everyone happy.
 

Intel competes with all of those industries you mentioned in corporate welfare, and often beats them. Look at further in our site for more information. If you give your name and contact info, I'll glady get a Intel Inside New Mexico book to you, written by SWOP. And that just chronicles the early rounds of handouts.

You're right, though, about your education and job. They weren't subsidized. You did the work, studied. Intel's profits are really what's subsidized by taxpayers.

Again, search Intel on our blog, and you'll find much on the subject.

thanks for the comment,

karlos