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Arlington, VA – Americans for Prosperity Vice President of Government Affairs Akash Chougule issued the following statement urging defeat of the so-called CHIPS Act under consideration in Congress this week:
“Poll after poll underscores what we are hearing firsthand at our ‘True Cost of Washington’ tour events across the country – the biggest problem facing Americans right now is inflation driven by out of control spending and bureaucracy run amok. But rather than address this crisis crushing American families, Congress is focused on dishing out billions in taxpayer subsidies to massive corporations and further injecting the government into the economy through the so-called CHIPS Act.
“The CHIPS Act taxpayer subsidies are not just unfair corporate welfare – they are also unnecessary. There are already strong commercial and security incentives pushing semiconductor companies to increase capacity and upgrade technology in the United States. Just since the beginning of 2021, semiconductor companies have announced nearly $80 billion in domestic investment plans through 2025, before any of the taxpayer subsidies under consideration kick in. Contrast that to China, where this government-centric ‘industrial policy’ approach has failed. After tens of billions of dollars in government subsidies and support, China remains a net importer of semiconductors to the tune of $300 billion.
“The United States didn’t become the strongest and most prosperous society in the history of mankind by emulating the Chinese government’s central planning, and we shouldn’t start now. Furthermore, the litigation likely to result from injecting billions of taxpayer cash into the mix could actually delay key investments that would have otherwise moved forward. If we want to see more American investment, the U.S. government needs to stay out of the way. Congress should reject the CHIPS Act and focus on reforming the federal budget to rein spending, pursue energy abundance, and reduce regulations to unleash innovation.”