Comment by reg_dunlop
16 hours ago
Forgive me...how is this different than taxes?
And wouldn't it be better to oh, I don't know, enforce the standard corporate tax rate?
16 hours ago
Forgive me...how is this different than taxes?
And wouldn't it be better to oh, I don't know, enforce the standard corporate tax rate?
Corruption is worse than taxes, because it's unfair. Now the government has an incentive to hurt AMD and free competition.
The distorts incentives and destroys the free market.
It's not like taxes because they are just making up the rules as they go along.
I look forward to the people who always claim “taxation is theft” to comment on a single man deciding to strong arm a company into giving 10% to the government.
This is a bailout; it's the opposite of taxes.
Isn't it the opposite of a bailout, given that the US gov't is seizing an ownership stake retroactively based on past grants/bailouts but giving no new money at this time?
The CHIPS Act was the bailout; this is just replacing the previous profit sharing with equity.
2 replies →
Most of the money has already been given:
> The government’s equity stake will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program. Intel will continue to deliver on its Secure Enclave obligations and reaffirmed its commitment to delivering trusted and secure semiconductors to the U.S. Department of Defense. The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has received to date, making for a total investment of $11.1 billion.
So it kinda is something weird? It's not really a pure bail out, the Chips act already did that, and it's also not really a tax because they aren't going to get money out unless there's dividends. It's more like a power play which makes sense given that Trump is uncomfortable without anyone getting anything for nothing.
No No No.
Grant money is counted as income. It is thus taxed.
If this were really an investment it wouldn't have been taxed.
Forget the grant. The grant has nothing to do with what happened.
Intel's board of directors voted to give 1/10 of the company away and thus devalued your shares.