Tag: Economic Policy

  • The New Cold War is Fought in Code: A “Digital Iron Curtain” is the Next Phase of US-China Policy

    The era of arguing about tariffs on steel and soybeans is over. The real battleground for global dominance is digital.

    The United States must move beyond traditional economic statecraft and implement a comprehensive “Digital Iron Curtain” strategy to counter China’s technological ambitions and safeguard its own national security, even if it means fundamentally altering the concept of a global, open internet.

    Explain what the core components of AI dominance are: advanced semiconductors, massive datasets, and cloud computing infrastructure.

    Discuss current U.S. export controls on chips (Nvidia, AMD) and the Commerce Department’s efforts.

    These controls have a loophole—Chinese firms can rent U.S. cloud infrastructure. Propose new regulations (like the one just announced) requiring cloud providers to act as gatekeepers, effectively denying adversaries access to America’s core computational power.

    Discuss the TikTok threat not just as propaganda, but as a massive data-harvesting operation.

    All data generated by U.S. citizens and businesses (from healthcare records to social media activity) should be treated as a strategic national asset.

    Propose legislation that prevents U.S. data from being stored or processed by companies with ties to adversarial nations, citing the risk of it being used to train their AI models.

    Connect the lessons of the COVID-19 pandemic (e.g., reliance on China for PPE, pharmaceuticals) to the technology sector.

    The U.S. cannot afford a similar vulnerability in its tech supply chain (e.g., circuit boards, drone components, network hardware).

    Analyze the role of tax credits and government spending (like the CHIPS Act) as a starting point, but argue for a more aggressive industrial policy to rebuild domestic manufacturing in critical tech sectors.

    Acknowledge the counterarguments: A bifurcated internet could stifle innovation, hurt U.S. tech companies, and run counter to First Amendment principles of openness.

    Rebuttal: The alternative is ceding the technological high ground to a strategic adversary, which poses a far greater long-term risk to economic prosperity and national sovereignty.

    Call to Action: Urge lawmakers to move with urgency to debate and enact a coherent, bipartisan strategy that treats digital infrastructure and data with the same seriousness as physical borders and military hardware.

  • MY UPDATED VIEWS ON “NO TAX ON OVERTIME” AND “NO TAX ON TIPS”

    A ‘no tax on overtime’ policy is a powerful and sensible tool for retaining a highly-skilled ‘varsity squad’ of experienced firefighters, for whom substantial overtime is a critical and routine part of providing for their families and ensuring public safety. However, this same policy is counterproductive and dangerous in lower-wage, hourly industries, like for a quality control inspector making $21 an hour, where it creates a perverse incentive to deliberately slow down work for a small bonus, undermining productivity. The immense benefit of properly compensating our most vital, high-stakes professionals like firefighters decisively outweighs the risk of this policy being exploited in sectors where it rewards inefficiency instead of essential skill.

    This same principle… that a policy must be targeted and not a broad, exploitable mandate… is why I am holding firm on my position regarding taxes on tips. While I fully support eliminating the tax burden on tips for service industry workers, a blanket, undefined exemption would be a mistake. It risks becoming a massive, backdoor handout to the cryptocurrency world, creating a tax-free loophole for digital transactions that have nothing to do with rewarding service. Therefore, any ‘no tax on tips’ policy must include a specific, carefully crafted exception for the traditional service and hospitality industry, ensuring the benefit goes to waitstaff, bartenders, delivery drivers, barbers, etc. not to anonymous crypto transfers.

  • Business Tax Devolutions: A Critical Dissection of Title XI, Subtitle B, Parts 1 & 2

    The recently proposed business tax measures under Title XI, Subtitle B, Parts 1 & 2, are presented as beneficial reforms. However, a closer examination reveals a series of provisions that range from questionably effective to deeply detrimental to American interests and fiscal responsibility.

    Sec. 111001: Extension of Special Depreciation Allowance (Bonus Depreciation) – A Recipe for Misallocation

    This section proposes extending 100% bonus depreciation for property acquired after January 19, 2025, and placed in service before January 1, 2030. This isn’t sound economic policy; it’s a blatant handout, likely to benefit well-connected insiders. Reports of companies already stockpiling assets suggest this will merely accelerate a pre-existing rush to capitalize on a temporary distortion. Such a policy actively encourages a misallocation of resources, incentivizing potentially unnecessary capital expenditure over more sustainable investments or debt reduction. It’s a short-sighted pump for certain sectors that will only exacerbate our national debt, not alleviate it.

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