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US to require companies winning chipmaking subsidies to share excess profits
Reuters via Yahoo ^ | February 28, 2023 | By David Shepardson

Posted on 02/28/2023 4:25:09 AM PST by Oldeconomybuyer

WASHINGTON (Reuters) - The Biden administration on Tuesday said it will require companies winning funds from its $52 billion U.S. semiconductor manufacturing and research program to share excess profits and explain how they plan to provide affordable childcare.

The Commerce Department on Tuesday is releasing its plans to begin accepting applications in late June for a $39 billion manufacturing subsidy program. The law also creates a 25% investment tax credit for building chip plants estimated to be worth $24 billion.

Recipients who receive more than $150 million in direct funding "will be required to share with the U.S. government a portion of any cash flows or returns that exceed the applicant’s projections by an agreed-upon threshold," the department said.

Commerce Secretary Gina Raimondo said companies must submit a workforce plan that includes an outline of workforce needs. Applicants seeking more than $150 million in direct funding must submit "a plan for how they will provide affordable and accessible childcare for their workers."

Applicants should also "create opportunities for minority owned, veteran-owned, and women-owned businesses; demonstrate climate and environmental responsibility; invest in their communities by addressing barriers to economic inclusion; and commit to using iron, steel, and construction materials produced in the United States."

"We're going to be doing our own diligence. We're not writing blank checks to any company that asks," Raimondo said. "We're making companies open their books."

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: fascism; marxism; semiconductors
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1 posted on 02/28/2023 4:25:09 AM PST by Oldeconomybuyer
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To: Oldeconomybuyer

Biden to semiconductor mfgs: “Here, take a hit of this drug. You’ll feel so much better.”


2 posted on 02/28/2023 4:29:32 AM PST by RoosterRedux
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To: Oldeconomybuyer

Basically Biden’s puppet masters are trying to run chip makers out of the US to cripple us even further.

This is about stopping the industry from developing in the US.


3 posted on 02/28/2023 4:30:30 AM PST by Skwor
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To: Oldeconomybuyer

4 posted on 02/28/2023 4:37:20 AM PST by IncPen ("Inside of every progressive is a Totalitarian screaming to get out" ~ David Horowitz)
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To: Oldeconomybuyer

Why are our tax dollars subsidizing chip makers, EV mfg. or any company for that matter? And then telling those companies what they can do and not do? That is not free enterprise. That is not freedom in any sense of the word and not the American way. It’s almost like our government wants to ruin this country and the people.


5 posted on 02/28/2023 4:38:46 AM PST by JoJo354 (We need to get to work, Conservatives!)
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To: Oldeconomybuyer

What are “excess” profits and who gets to determine that?


6 posted on 02/28/2023 4:46:39 AM PST by esquirette ("Our hearts are restless until they find rest in Thee." ~ Augustine)
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To: Oldeconomybuyer

Who is John Galt?

This story is ripped from the pages of Atlas shrugged. Literally.


7 posted on 02/28/2023 4:47:02 AM PST by cuban leaf (My prediction: Harris is Spiro Agnew. We'll soon see who becomes Gerald Ford, and our next prez.)
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To: Oldeconomybuyer

Moving closer to communism.


8 posted on 02/28/2023 4:47:17 AM PST by I want the USA back (News media are pond scum. My pronouns: Haha, heehee, hoho, hoo hoo. )
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To: Skwor

“This is about stopping the industry from developing in the US.”

...

What they want isn’t just a business, they want this to be the perfect business, the shining example that treats all ‘stakeholders’ fairly. By the time we get through this trough feeding, with the set-asides, and the equitable distribution of the jobs to the favored disadvantaged groups, then we can get around to finally making something.


9 posted on 02/28/2023 4:47:28 AM PST by Not_Who_U_Think
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To: JoJo354

It is textbook fascism.


10 posted on 02/28/2023 4:47:57 AM PST by cuban leaf (My prediction: Harris is Spiro Agnew. We'll soon see who becomes Gerald Ford, and our next prez.)
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To: Oldeconomybuyer

“Excess” profits? Who defines “excess”? This is so un-American!


11 posted on 02/28/2023 4:49:51 AM PST by MayflowerMadam (Stupid is supposed to hurt.)
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To: Oldeconomybuyer
In a truly free Capital economy, the Gov gives NO money to manufacturers, and any "excess" profits go to the share-holders and capital improvements (to make even more "excess profits").

What a travesty that we have allowed our God-given economic system to be corrupted so.

12 posted on 02/28/2023 4:51:41 AM PST by Psalm 73 ("You'll never hear surf music again" - J. Hendrix)
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To: Oldeconomybuyer

The whole thing sounded good ... for sound bites showing Biden was “doing something” - but on closer look the fund will do just the opposite and discourage chip makers, who will see this as US government control, making them government ‘profit’ centers. Any where but the US - so they will stay offshore.


13 posted on 02/28/2023 4:54:36 AM PST by PIF (They came for me and mine ... now its your turn)
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To: RoosterRedux

“Biden to semiconductor mfgs: “Here, take a hit of this drug. You’ll feel so much better.”

Biden’s the dealer, a receiving company is the user. The user has some responsibility for his addiction.


14 posted on 02/28/2023 4:56:37 AM PST by cymbeline
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To: MayflowerMadam

Exactly, this is what the mafia does, always need to have a taste. Id assume theyll be using the companies forecast to determine “excessiveness”. Which of course will lead to accounting tactics to bury the excessiveness of it all. Another unintended consequence will be pricier chips but hey inflations on its way out so..... we will all be fine.


15 posted on 02/28/2023 4:58:25 AM PST by MrRelevant
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To: Oldeconomybuyer

There won’t be any ‘excess’ profits.........................


16 posted on 02/28/2023 5:15:18 AM PST by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: esquirette

10 percent for the big guy


17 posted on 02/28/2023 5:25:14 AM PST by lowbridge ("Let’s check with Senator Schumer before we run it" - NY Times)
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To: Skwor
..companies must submit a workforce plan that includes an outline of workforce needs.

Recipients .. "will be required to share .. cash flows or returns that exceed the applicant’s projections..

Yes, Comrade, your government extends the bread with one hand and holds the pistol in the other. You must produce quality
and quantity in accord with our DIE strictures..or else. We are the new World Order and you will obey.

Welcome to our glorious 5 year plan!

From each, according to his ability. To each, according to his need.

18 posted on 02/28/2023 5:25:16 AM PST by Thommas (The snout of the camel is already under the tent.)
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To: Oldeconomybuyer

Can we agree that anyone using the term “excess profits” is not to be trusted?


19 posted on 02/28/2023 5:28:04 AM PST by Demiurge2 (Define your terms!)
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To: esquirette

All they have to do is distribute any profits to the CEO as a bonus to avoid this sharing.


20 posted on 02/28/2023 5:28:37 AM PST by oldasrocks (quew)
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