Tag Archive: State of Oregon


Muhammad Ali was the self-proclaimed, ‘Greatest of All Time.’

And then Joe Frazier walloped him with a massive left hook, sending Ali and his pretty red tassels sprawling on the canvas.

The lesson: Be careful about labeling someone, anyone — particularly anointing yourself — as the ‘Greatest.’

As an on-and-off naturalized Oregonian since 1975, Almost DailyBrett believes it’s now safe to make the call about the state’s greatest-ever citizen.

Hands down, it has to be Phil Knight.

Happy Birthday #82, Uncle Phil.

Some may want to immediately contend that Knight is being named Oregon’s greatest simply because he the 16th wealthiest in the world with an estimated fortune of $35.9 billion (Forbes). Bernie Sanders says billionaires should not exist. Oregon should be proud that Phil Knight more than exists; he thrives and cares.

To be considered by Almost DailyBrett for this lofty honor, one has to be born in Oregon. Salem lists among its most influential: President Herbert Hoover, Governor Tom McCall, trail blazers Meriwether Lewis and William Clark, but alas … none of them were born in Oregon.

Some worthy native Oregonian candidates for the ‘greatest’ designation include: Oregon track coach Bill Bowerman, Senator Mark Hatfield, author Ken Kesey, Senator Wayne Morse, runner Steve Prefontaine and democratic socialist John Reed.

Sorry being the only American to be buried in the Kremlin Wall (played by Warren Beatty in the interminable “Reds”) does not put Reed at the very top of the greatest Oregonians list.

Why is Phil Knight the greatest? Let’s Just Do It.

Never In Recorded History Have So Many Oregonians Owed So Much To One Man

If one Googles (21st century verb) the word, “entrepreneur,” the image of one Philip Hampson Knight should serve as the definition.

His best seller, “Shoe Dog,” tells the story of how he turned a $1,000 loan from his father and almost failing about nine times, he actually turned the proverbial corner with his athletic apparel company, Nike.

Today, Almost DailyBrett is a happy-camper-investor for many moons in the global athletic apparel market leader by far, Nike (NYSE: NKE).

The total amount invested in Nike stock is $156 billion (e.g., Feb. 21 market capitalization figure) with shares trading at 35 times multiple compared to the prior year’s earnings (P/E ratio).  Beaverton, Oregon-based Nike reported annual revenues of $39.1 billion in FY ’19. In total, 70,000  employees work for Nike globally, 8,000 of them in Oregon.

Without any doubt, Phil Knight’s Nike is the largest and most influential publicly traded company in the history of the State of Oregon. Think of Nike this way, great company, great products, great employer and great publicly traded company. How’s that for fiduciary responsibility?

Nike pioneered its much copied marketing campaigns celebrating The Athlete: Michael Jordan, Tiger Woods, Roger Federer, LeBron James,  Rafael Nadal, Kevin Durant, Rory McIlroy, Stephen Curry and many, many others.

Almost DailyBrett has not always agreed with Nike’s marketing decisions (e.g., Nike Takes A Knee), particularly designing and selling apparel associated with NFL persona non grata, Colin Kaepernick. Your author has never expected perfection with any individual or organization (impossible distinction to achieve, let alone maintain), and the same is true with Nike.

Giving Back To His Native State, Oregon

“And here at home in Oregon, we believe the potential to arm our talented young people with the skills and tools, they will need to have a lasting impact on the world and to pursue rewarding careers, make such (charitable) investments essential.” — Phil Knight upon making a $500 million pledge to the University of Oregon for a new science center

When discussing Uncle Phil’s financial impact you are reaching the end of the beginning of the Phil Knight story, not the beginning of the end. Knight’s legend particularly revolves on his giving back to his native Oregon and the world.

Preparations for the opening of the Knight Cancer Research Building, August 21, 2018. (OHSU/Kristyna Wentz-Graff)

Considering that Phil’s business strategies and his company focused on sports (e.g., track and field), it’s only natural to first emphasize his sports philanthropy, particularly for his alma mater, the University of Oregon (e.g., BA in Business Administration, 1959). He has given more than $300 million (and counting) to the school’s Athletic Department, including $100 million to the UO Athletics Legacy Fund.

Academically, he contributed the lion’s share to the $27 million renovation to the University of Oregon Knight Library. The name of his late father and 1932 Oregon Law grad, William W. Knight, adorns the 68,000-square foot UO law school.

He has also directed $500 million-plus to Oregon Health Sciences University’s (OHSU) Knight Cancer Institute, and $125 million more to establish the OHSU Cardiovascular Institute.

Knight’s generosity is not limited to Oregon universities, as he gave $105 million to the Stanford Graduate School of Business (e.g., MBA, 1962). Recently, he pledged another $400 million to Stanford to establish an on-campus new graduate scholarship program.

With all due respect to the memories and accomplishments of Governor McCall and Senators Hatfield and Morse, Bowerman, Pre, Kesey and Kremlin Wall fixture, John Reed … none of them rose to the level of entrepreneurial and philanthropic success and impact on Oregon’s past, present and future than Phil Knight.

Yes indeed without any conceivable doubt, Phil Knight is the greatest Oregonian of all time.

https://sos.oregon.gov/blue-book/Pages/explore/notable/knight.aspx

https://sos.oregon.gov/blue-book/Pages/explore-oregonians.aspx

https://www.oregonlive.com/life-and-culture/erry-2018/07/227b06fbff2915/the-100-greatest-oregonians-ev.html

https://www.forbes.com/forbes-400/#39cd30857e2f

https://www.businessinsider.com/athletes-endorsements-nba-golf-tennis-2019-6

https://www.oregonlive.com/business/2016/10/phil_and_penny_knight_will_giv.html#incart_river_index

https://almostdailybrett.wordpress.com/2012/09/25/taxing-uncle-phil-to-death/

https://almostdailybrett.wordpress.com/2018/09/04/nike-takes-a-knee/

Doesn’t the Declaration of Independence provide for life, liberty and the happiness of pumping our own gas?

There is certain joy that comes from feeling the surging petroleum rocket from the pump directly into my little green chariot. This Freude is kosher in the State of Washington and in California.

But what about that state in between?

Since 1951, it has been Verboten for a mere mortal motorist to pump his or her own gas in the State of Oregon. This antiquated 20th Century law requires petroleum transfer engineers (e.g., popular major at Oregon State University), and only PTEs to exchange fluids in the Beaver State.

What’s that Elon Musk?

Are you saying that EVs could spell doom to the PTEs?

The first affordable Tesla Model 3s are coming off the production lines in Fremont, California (the old NUMMI plant). The initial plans call for 110,000 this year and 500,000 next year.

From $35,000 upwards to $60,000 with all the fixins’, the intrepid all-electric motorist can roar from zero-to- 60 mph in 5.6 seconds with just a tap on the dashboard tablet without omitting one fossil fuel particle into the atmosphere.

Elon Musk, CEO of US automotive and energy storage company Tesla, presents his outlook on climate change at the Paris-Sorbonne University in Paris on December 2, 2015. / AFP / ERIC PIERMONT (Photo credit should read ERIC PIERMONT/AFP/Getty Images)

How’s that sound green Oregonians?

Even a Prius requires a PTE now-and-then. And despite all the hype and owner strutting, the Toyota hybrid still contributes to Climate Change. The proud owner may still be gluten free, but his or her precious Prius is nonetheless putting CO² into the air.

In contrast, the Tesla Model 3 can travel 220-to-310 miles on one charge of electricity. What does that mean to Oregon’s PTEs (same for New Jersey’s legally mandated PTEs)? Are each of you heading for the same crash landing as those who made buggy whips?

Electronic vehicles make PTEs as uncomfortable as a former sales dude or sales dudette at Borders as the imposing Amazon digital shadow hovered over the bricks-and-mortar store. Did you have that out-of-print book, Borders? Do you sell that obscure concerto, Barnes & Noble? Amazon does (Google “Long Tail” Theory”) as there are no physical restraints on its inventory.

Maybe the Oregon PTEs will unionize (if that haven’t already) and march into Salem (not the one where they burned witches) and ask for a new law requiring ETEs (Electricity Transfer Engineers) to recharge EVs in Oregon.

Wait a minute? Oregon could actually mandate that ETEs recharge your Climate Change friendly EV? Don’t bet against it.

Think of it this way, if the state Legislature in its infinite wisdom for 66 years and counting required PTEs to pump gas into each car and expressly forbids the motorist from doing the same, then what’s to prevent them from requiring highly trained electricity transfer engineers (ETEs) to recharge your EV Tesla, Volvo, BMW, Chevy etc.?

What’s next? Will the state mandate an ETE to plug in your toaster or change a light bulb?

Incentives Today; Taxes Tomorrow

Immediately south of Oregon, the Golden State’s one-party Legislature is weighing adopting the California Electric Vehicle Initiative, which would designate $3 billion for larger rebates for those who purchase Tesla and other electric cars.

In April, the same Legislature passed legislation raising California’s gas tax by 12 cents to 30 cents per gallon.

Let’s see the state is considering incentivizing EVs to the tune of $3 billion. And nearly at the same time raising gas taxes to raise $5.2 billion.

What happens if the EV revolution is real and a precipitous decline in fossil-burning vehicles ensues? Does that mean gas revenues will simultaneously decline? Oh dear.

And does that lead to actually taxing EV recharges even though these environmentally friendly cars have been incentivized by the state?

What’s more important in Sacramento and other state capitals? The environment? Tax revenues?

Seems like a silly question to even ask.

https://www.cnbc.com/2017/07/31/tesla-falls-after-model-3-as-street-thinks-musk-sounded-squeamish.html

https://www.washingtonpost.com/news/innovations/wp/2017/07/29/i-spent-three-minutes-inside-teslas-model-3-and-im-still-thinking-about-it-a-day-later/?utm_term=.98459e459664

https://www.quora.com/Why-is-it-illegal-to-pump-your-own-gas-in-New-Jersey-and-Oregon

https://www.wsj.com/articles/tesla-model-3-arrives-as-elon-musk-tries-to-manage-expectations-1501234208

http://www.mercurynews.com/2017/06/28/new-bigger-incentives-for-electric-cars-could-be-ahead-in-california/

http://www.latimes.com/politics/la-pol-sac-gas-tax-signing-20170428-story.html

 

 

 

 

Is the return of the red robin the true harbinger of spring?

How about azaleas at Augusta with a Tiger lurking in the rough?

Or how about millions of taxpayers struggling with the effects of 70,000 pages of federal tax code (before the impact of Obamacare), up just a tad from the 400 pages that existed in 1913?

Presidents may come and presidents may go, but the Internal Revenue Service is forever. This week’s edition of the Economist www.economist.com provides a simply numbing set of stats about the growth of complexity associated with filing tax returns by April 15.

Quick: Which American industry is six times larger than the other? Tax preparation or automotive design and manufacture?

According to the British business “newspaper,” Americans spend 7.5 billion hours annually grappling with the tax code. Here’s another way of looking at the same stat, America employs the equivalent of 3.8 million people or the same as every man, woman and child in the State of Oregon to fill out tax returns . . . That’s right a whole state, everyone in Portland, Eugene, even Corvallis…all devoted to doing nothing else during the course of a work year than preparing taxes.

The result of this complexity and exploding tax codes is that 60 percent of American taxpayers hire tax accountants or attorneys and 22 percent use tax-preparation software. Regardless of whether the economy is expanding or contracting, the government still wants its money. So does this growing dependency on tax accountants, attorneys and software result in recession-proof brands?

Here’s one for consideration, H&R Block (NYSE: HRB) http://www.hrblock.com/company/index.html, which has been around since the year that I was born (shortly after the earth cooled) and prepares one out of every seven American tax returns. The company describes itself in this manner: “The world’s largest tax preparation business, employing 100,000 tax professionals and having served more than 500 million clients. Brothers Henry W. Bloch and Richard A. Bloch founded the company in 1955 and grew the business to become a brand and franchising icon.”

And here’s another tax-complexity related brand, Intuit Inc. (NASDAQ: INTU) which provides its “Turbo Tax” software http://turbotax.intuit.com/?cid=intuit_tt_TY09bottomrail and other application software offerings for consumers and businesses.

Bringing it all together, Americans as a result of 70,000 pages (and growing) of federal tax code are employing the equivalent of the State of Oregon spending 7.6 billion hours annually and hiring a legion of accountants, lawyers and software, which together constitute a business that is six-times the size of the American automobile industry, in order to pay the US Treasury and the coffers of state and local governments.

And the federal government?  Even the head of the IRS, Douglas Shulman, has an accountant to prepare his taxes. And Washington DC now owns General Motors and Chrysler. Go figure.

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