The government in Washington isn’t taking necessary actions to ensure that our economy remains competitive, says Intel CEO Paul Otellini.
“More of the country is beginning to recognize that we are not taking the right steps as a nation to ensure that our economy is on a long-term trajectory of growth and leadership,” he said in a speech.
“Businesses have yet to resume broad-based hiring, and there remains a fundamental lack confidence that is holding back our economy.”
The stakes are high Otellini says. “Unless government and business take firm actions to improve education, create a culture of investment and job creation in this country, then the next Intel or the next big thing will not be invented here,” he said.
“Jobs will not be created here. And wealth will not accrue here.”
We need a comprehensive trade strategy. And rebuilding our research and development capabilities is crucial, Otellini says.
Corporate taxes are a key issue as well.
“Our combined state and federal corporate income tax rate, after all, is the second highest in the industrial world,” he said. The rate must be lowered.
“Making the R&D tax credit permanent and more competitive globally also is necessary,” Otellini said.
Chris Marangi, a portfolio manager at Gamco Investors, echoes Otellini’s thoughts. “Capital is agnostic. . . . It goes where it finds the highest returns," he told Cnet.com. Unfortunately, “(other) countries have a more friendly regulatory regime than we do."
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