Case in point: As congressional committees continue to debate differences between the House and Senate versions of the America COMPETES Act, the so-called China bill, some lawmakers are pushing to include tax laws that would blatantly subsidize unprofitable private investments.
Ron Wyden, D-Ore., and Michael Crapo, R-Idaho, respectively-want to add another massive subsidy disguised as a tax credit to build semiconductor manufacturing facilities.
The federal government would offset every $100 a company spends on the purchase or construction of semiconductor facilities with $25 in tax credits.
Supposedly, the tax preference is meant to strengthen U.S. semiconductor manufacturing.
Tax subsidies for semiconductor investments would make every other industry weaker, too, by starving them of the capital they need to make sound investments.
The tax code is filled with artificial barriers to investment.
Along the same line, one new barrier to investment in the tax code, as of January, is the requirement that businesses amortize research and development expenses over five years.
It's becoming increasingly difficult to discern fact from fiction, and unfortunately the media has a strong bias. They spin stories to make conservatives look bad and will go to great lengths to avoid reporting on the good that comes from conservative policies. There are a few shining lights in the media landscape-brave conservative outlets that report the truth and offer a different perspective. We must support conservative outlets like this one and ensure that our voices are heard.
Tuesday, May 24, 2022
Proposed Amendment to “China Bill” Would Wrongly Reward Unprofitable Investments
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