Comment by kelipso
12 days ago
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?
12 days ago
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
https://www.azcentral.com/story/money/business/jobs/2024/04/...
R&D is a cost center that can no longer be written off of a company’s taxes.
I don’t believe that cost centers are a good example of returning manufacturing onshore. Or an example of a state using federal funding well.
Cost centers are not a good investment for federal funding, without a clear path to paying back our taxed dollars.
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.
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