Why I Love to Hate the OCPP

Before I thrash him here, I should say that I actually like Chuck Sheketoff. He's an excellent public speaker, which I like and admire. He's witty and thinks quickly on his feet. I recommended him to be part of a City Club of Portland panel, and he did very well. Sit next to him at dinner and you'll have a fine time.

But Chuck's political writing gets under my skin because his approach is inductive and emotional, and he uses that approach to gloss over otherwise troublesome facts. If you're looking to have your liberal prejudices reaffirmed, he's great. If you're looking to understand what's going on in detail, he's worse than useless.

Consider his recent [when I first wrote this] column regarding an apparently huge piece of corporate welfare, "Is Intel Bluffing?" - it's a masterpiece of the genre.

The public policy question is, should Intel get a huge property tax break on a planned multi-billion dollar investment? Useful related questions are, what will happen if they don't get the tax break, and what's the purpose of property taxes and of selective tax breaks? Is the (fairly common) practice of excusing very large capital investments from taxation a nod to the virtues of the Land Value Tax?

Sheketoff sidesteps all of that. To him, all taxes are just and good. There are no opportunity costs, and the hypothetical tax revenue is as good as in the bank - so the tax break "give[s] away $579 million of property taxes that are dedicated to funding public services."

Except of course it doesn't "give away" what it hasn't collected yet, and the whole question is, will Intel make a huge multi-billion dollar investment in Oregon if Oregon is planning to tax that investment to the tune of half a billion dollars? More pointedly, what are Intel's other options, and how likely is it that another location (Arizona, for example) might waive the tax if Oregon doesn't, and thus get the investment?

I think the whole subject of local governments competing with tax breaks and giveaways to lure jobs is fascinating. I'm convinced most of it is stupid; it's often a zero-sum game where tax dollars get spent to shuffle existing jobs between cities and states, and the firms that aren't threatening to move find that their taxes are being used to subsidize their competitors.

Here too, Sheketoff can't give us any facts, just innuendo mixed with irrelevant statistics.

[Postscript - Sheketoff won by getting the tax break killed, and Intel did NOT invest in Oregon. Perhaps that was his goal all along - to chase away those pesky jobs that make people independent of their government, and keep as many people unemployed and downtrodden as possible.]