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Tag: tax credits

  • 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.

    David Gross

    Follow me at https://x.com/dgapps and https://davidgrossapps.com

  • Part III: Analyzing the “Big Beautiful Bill”: A Look at New Taxes, Fees, and Revenue Raisers

    The proposed “Big Beautiful Bill” (BBB) introduces a sweeping range of new taxes, fees, and revenue-generating measures that demand close scrutiny. This article examines key provisions, aligning with a vision that prioritizes American interests and fiscal responsibility.

    Measures to Potentially Bolster American Interests:

    Several proposed measures in the BBB could be seen as aligning with an “America First” approach:

    • Excise Tax on Remittance Transfers (Sec. 112104): This provision introduces a new tax on money sent abroad. Such a measure could be viewed as a way to retain capital within the country and generate revenue from outflows.
    • New Immigration-Related Fees (Title VII, Part 1): The bill imposes new fees for various immigration processes, including asylum applications, employment authorizations for certain non-citizens, and for sponsors of unaccompanied children who fail to meet court appearance requirements. These fees ensure that the immigration system is not an undue burden on the taxpayer and that those who use the system contribute to its costs.
    • Fee on Natural Gas Exports and Imports to Non-FTA Countries (Sec. 41002): This establishes a fee on natural gas trade with countries not part of a Free Trade Agreement (FTA) with the U.S. This is a strategic move to favor trade with FTA partners and generate revenue from other international gas transactions.
    • Modification of Vessel Tonnage Duties (Sec. 100002): Changes to vessel tonnage duties (taxes on ships entering U.S. ports based on their cargo capacity) updates these fees to better reflect modern shipping practices and ensure fair contribution from international maritime commerce.
    • Termination or Restriction of Clean Energy Tax Credits (Title XI, Subtitle C, Part 1): The bill calls for ending or limiting various clean energy tax credits, such as those for electric vehicles, alternative fuel refueling property, and energy-efficient home improvements. This aligns with the perspective that such credits may represent market distortions or handouts and that their removal levels the playing field.
    • Increased Excise Tax on Private Foundation Investment Income (Sec. 112022): An increase in the excise tax on the net investment income of certain private foundations, based on asset size, is proposed. This is a way to ensure that large, tax-exempt foundations contribute more to public revenue, particularly if there are concerns about how these funds are being utilized or if they are perceived as benefiting from arrangements that do not primarily serve domestic charitable purposes.
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  • Reforming Individual Income Taxes: A Focused Approach (Part I of a BBB Critique)

    The current discourse around individual income taxes is cluttered with temporary fixes, unpopular mandates, and provisions that miss the mark for many Americans. Instead of a sprawling bill, a more focused approach is needed, prioritizing permanent, common-sense changes while jettisoning controversial or ineffective measures. Here’s a look at what such a refined individual income tax bill should, and shouldn’t, include.

    Core Tax Provisions: Stability and Simplicity

    At the heart of a sensible tax reform should be the permanent extension of several key provisions initially from the Tax Cuts and Jobs Act (TCJA). This includes making permanent the modified individual income tax rates, the increased standard deduction, and the termination of personal exemptions. These measures offer a baseline of stability for taxpayers.

    However, the idea of a temporary enhancement to the standard deduction, proposed for taxable years 2025-2028, should be rejected. Such short-term measures are often gimmicks, creating fiscal uncertainty and providing future leverage for increased government spending without addressing the immediate need for significant fiscal discipline now.

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