This can not be controlled.
We must raise taxes substantially to create economies of scale in heavy industry.
We can not win this race on the cheap.
The only reason the US is venturing into a dictatorship is that wealthy people are avoiding a day when taxes are much higher.
I don’t understand the role of wealthy people paying taxes in this.
Nvidia sees China as a major market and wants to sell there. To me our earlier blockage of chips to China caused China to invest in developing its own AI chips. I think that is inevitable.
National security issues which we began w Huaua telecom equipment applies in both directions.
So far Nvida has stripped out part of their best functions in chips for China to comply with U.S. export requirements. Made deal w US to share profit w govt in return for right to sell to China. But China now discourages buying Nvidia chips (made in Taiwan).
This looks like a geopolitical problem rather than a tax problem. Global competition from China seems likely. Some say we are so far ahead China cannot compete. Be assured they are working on it. Once people said they cannot build cars.
I could be wrong, but I think the suggestion is that if the US collects more tax revenue from individuals, it would put the government in a better position to fund advances in AI chip / software development…like China does. That of course is a ludicrous idea given our current shenanigans.
Now, if the 25% tariff Nvidia pays to the US government were directed into chip / software development, that would be something! Most people who don’t have their head in their arse suspect these proceeds will go to lowering taxes instead…
Our economy is substantial based on ai.
We need a policy driven heavy industry policy to drive economies of scale.
70% on the top bracket and the rich won’t take as much out of their corporations.
50% corporate taxes and the wealthy will reinvest.
We have to begin to exceed the Chinese economically.