State Tax

Nike gets NO NEW TAXES

Oregon- Nike is proposing on being a job creator in Oregon in exchange for a freeze on their state taxes. This proposal could amount to hundreds of jobs for the state which has prompted legistlators to approve this measure as emergency legislation.

Critics of the approval are suspicious about the timing and intent of this special session. When other legislators were out on holiday break Oregon legislators came together and approved an emergency assurance to one of the largest shoe and athletic companies in the world.

This deal once again proves that Oregon will go to great lengths to protect this corporate giant and all it brings to the state. Money and power has once again tromped common sense and assessing fair taxes equally on all taxpaying parties.

“We have a wonderful, wonderful company that’s going to be remaining in Oregon because of what we’re doing here today,” said Democratic Sen. Ginny Burdick of Portland.

This Nike deal is completely unconventional in a world where tax cuts for the wealthy have become commonplace in the political world.

Due to its emergency nature the meeting cost taxpayers $13,000 and came right before the regular legislation was set to be held. With all of these circumstances the deal seems rather peculiar that it happened in such a manner.

Such factors led Kitzhaber to acknowledge the emergency legislative session was “extraordinarily awkward.”

With this initiative in place Nike has promised to make more than 500 jobs and invest at least $150 million dollars into Oregon’s economy. The bill could be signed as early as next week by the governor.

It is still unclear as to why the emergency legislation took place but one could surmise that Nike may have been threatening to expand outside of Oregon. Nike declined to comment.

In a statement, Nike spokeswoman Mary Remuzzi thanked legislators for acting “quickly and decisively.”

“This is a very positive step forward, not only for our company but for the state of Oregon,” the statement said.

This new infrastructure and job creation is critical in a state that has low property tax, no sales take and relies heavily on personal income taxes. Why in such a tax strapped state legislators are actually giving up tax collection on one of the largest employers in the state. No one knows.

Nike justifies this by claiming that these new jobs to be made are in high income positions and therefore will help bolster the economy.

Nike has been quiet on its new expansion plans or what it plans to do or what the workers plan on doing.
Nike has roots deep within Oregon when it was created in the 1960’s by a runner and his college track coach. Nowadays this company has blossomed into one of the most influential and popular brands in the world. The company is also a very large donor to the University of Oregon.

One can see just how much pull money and power can bring into the legislative sphere. It looks like Nike has their state politicians calling emergency legislative sessions and pulling favors for them. What’s next?

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Posted by Taxmaster - December 19, 2012 at 7:21 pm

Categories: Income Tax, State Tax, Tax Law   Tags: , , , , , , , ,

November spells end of term for Shulman

The United States Commissioner for Internal Revenue Douglas “Doug” Shulman will step down from his position at the IRS on the last day of his term, which is on the 9th of November this year. Having served since his nomination back in March of 2008, the 47th IRS Commissioner has made plans to step down at this point in time. According to law, an IRS Commissioner who is nominated by the United States President, and consequently confirmed by the United Stated Senate, can serve a term of up to 5 years, ending on the 12th of November on their last term year. In Shulman’s case, since November 12 has been declared a federal holiday, his last day of work will be on November 9.

Before serving the country through the IRS, he began his career at a consulting firm in New York. Shulman has formerly held some very important positions in the country’s top institutions as well. He is a former Chairman for FINRA (Financial Industry Regulatory Authority – NASD) and a former board member of the DTCC (Depository Trust and Clearing Corporation).

While in NASD, he led numerous efforts toward modernizing NASD’s technology systems in order to optimize its functions. He also launched NASD’s TRACE (Trade Reporting and Compliance Engine) which served as NASD’s regulatory and informational system for real-time corporate bonds. One of his most notable accomplishments was having successfully negotiated the sale of the American Stock Exchange as well as the NASDAQ Stock Market.

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Posted by Taxmaster - October 10, 2012 at 5:44 pm

Categories: Federal Tax, State Tax, Tax Law   Tags: , ,

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