Americans for Tax Reform opposes the CHIPS Act and urges all lawmakers to vote NO.
The legislation would authorize the appropriation of $200 billion and add $79.3 billion to the deficit, according to estimates from the Congressional Budget Office. This includes corporate welfare in the form of $52 billion in grants to semiconductor companies and an additional $24 billion in tax credits.
Originally a bill totaling 73 pages, Democrat leadership has now tacked on a 1,054-page amendment that includes $81 billion in funding for the National Science Foundation, $50 billion in funding research for the Department of Energy and $11 billion for “regional technology hubs.”
Grover Norquist, President of Americans for Tax Reform, issued the following statement in opposition to the CHIPS Act of 2022:
“Congress should reject this taxpayer-dollar giveaway program. We outcompete China by growing an economy that benefits ALL industries. Not by subsidizing special interests handpicked by Congress four months out from an election. Taxpayers should not be expected to subsidize private companies. If Congress wants to pursue policies that would ensure semiconductors are built in America, then it would be better off cutting the corporate tax rate to 15 percent and permanently allowing businesses to expense research and development costs.”
With inflation at 9.1 percent in June and at a 40-year high, Congress should not be adding fuel to the inflation fire with more deficit-funded spending. Republicans in Congress have rightly argued that Democrats’ trillion-dollar spending sprees contributed significantly to inflation that’s reduced real wages and lowered family budgets. Republicans have stood as a bulwark against Democrats’ reckless spending thus far and are campaigning on a return to fiscal responsibility. They should not cave now and join in on Democrats’ spending spree.
Americans for Tax Reform urges all lawmakers to oppose the CHIPS Act.