In what could be the most consequential piece of legislation from Biden’s presidency thus far, the U.S. Senate passed a bill on Wednesday that empowered corporations to do business with Communist China.
Fortune 500 companies could receive over $280 billion in tax subsidies if the House of Representatives passes the CHIPS Act — a bill that ostensibly accelerates semiconductor manufacturing, which Democrats claim will help lower prices amid a record-high period of inflation.
In a 64-33 vote, the U.S. Senate passed the semiconductor bill on Wednesday. It will now head to the House, where lawmakers will consider the legislation with the goal of sending it to President Joe Biden before Congress’s August recess.
The bill will provide billions of dollars to fund innovation and factory construction. Most notable, it will provide $52 billion in subsidies to semiconductor factory projects around the country.
Joe Biden urged the House to vote on the bill “ASAP” in a tweet his team posted in celebration of the Senate vote.
I took a moment today to watch the Senate pass the CHIPS and Science Act, a bipartisan bill that will accelerate semiconductor manufacturing in the U.S.
It will lower prices, create jobs, and – critically – decrease our reliance on imported chips.
The House should pass it ASAP. pic.twitter.com/dnsa3xVdDr
— President Biden (@POTUS) July 27, 2022
Here’s why the CHIPS and Science bill that just passed the Senate is a really big deal. pic.twitter.com/MgODo5Jd4D
— President Biden (@POTUS) July 27, 2022
The manufacturing of semiconductors has largely wanned in America and factories have struggled to keep up with supply, causing a massive delay in their work. Environmental regulations and supply chain issues have compounded the difficulty many manufacturers face in producing the critical technology needed for several key products, including automobiles and computers. Toyota, for example, cut its car production quota by 50,000 in July 2022 due to a lack of semiconductors.
However, the subsidies given to U.S. corporations for semiconductor research and production come with zero oversight or guarantee that chip production will remain in America. There are no stopping companies benefiting from these subsidies from supporting semiconductor manufacturers in China, which has been the status quo all along.
There’s the additional issue of cutting federal revenue at a time of record-high inflation, and the bill’s price tag will only make matters worse. Middle-and-low-income Americans will bare the brunt of even higher consumer prices as the value of the dollar shits the bed.
The CHIPS Act did unfortunately receive bipartisan support and is expected to pass in the House. But some GOP lawmakers are warning against the harrowing effects that could come about due to this legislation.
Today, I sent a letter to members of the U.S. House of Representatives urging them to reject the massive, pro-China “CHIPS” Act.
This bad bill will spend $280 BILLION we don’t have. We must stop it & demand accountability to American taxpayers. https://t.co/rWl0dljCq8
— Rick Scott (@SenRickScott) July 28, 2022
Unchecked corporate welfare for America’s largest corporations at a time when Americans are struggling to feed their families is not only a bad idea, it will potentially devastate the U.S. economy to the point of no return.
Author: Robert Bogart
