That IS what Biden was trying to do though with the CHIPS Incentive Act. He was trying to onshore production of semiconductors in a partnership with TSMC. Didn't do him any favors, and Harris lost the state of Arizona anyway. Americans had the choice between a party that was serious about trying to onshore some manufacturing and a party that wasn't, and it made the wrong choice because vibes, basically.
This may be more accurate than you realize. Both Democrat and old Republican party rhetoric and policies were pro-globalization/offshoring, with the occasional exception such as CHIPS (and corn subsidies). It's not surprising nobody believed they were changing direction, if for every "we're bringing semiconductors back", they heard ten "your car is German your phone is Chinese your tacos are Mexican, how dare you interfere with glorious Free Trade!"
Also one can't ignore that the GOP managed to remarked the CHIPS act as a key source of inflation, which they also managed to pin on "Bidenomics". Which was another source of "vibes, basically"
Weren't we hearing for years about how it went to waste because Intel did stock buybacks or whatever using the CHIPS money. Now we are supposed to believe it's critical?
CHIPS incentive funding is way bigger than just Intel, so it’s a bit disingenuous to write off the whole program just because of one (or even several) high profile bad actor. We should have a nuanced discussion and fix the shortcomings of our programs, but at least assess things in a balanced way.
If you check the transcript of the confirmation hearing for the current Commerce secretary, practically every Senator brags about their state’s CHIPS funded R&D hub. Lots of growth in small and medium businesses there. And CHIPS incentive funding played a huge role in bringing the new TSMC fab in Arizona
This entire post is so wrong, it is difficult to know where to start. The first sentence about taxes is wrong. The second statement is an entirely unsupported opinion. The final statement miscategorized "cost centers" as some sort of federal investment? As for "clear path", the road US exceptionalism is paved with the gold derived from sensible investments in R&D and tech advancement. There was no clear path to paying back our investment in the federal highway system, but it did pay back indeed. There was no clear path to paying back our investments in basic physics, chemistry, and biology, but it did pay back indeed.
> R&D is a cost center that can no longer be written off of a company’s taxes.
Can you elaborate on this? It was my understanding a company only pays taxes on profit. So isn't the revenue that goes into R&D effectively taxed at 0%, since at that point it's not yet profit? I.e. only dividend payouts get taxed.
2017 Tax Cuts and Jobs Act made it less beneficial to use R&D for tax credits because they had to be amortized over five years. Not good when you're an MBA looking to financially engineer your way into a fat bonus.
