By the numbers, the U.S. is falling behind China on several key national security fronts: shipbuilding capacity, power generation capacity and infrastructure funding.
Andrew King, general partner of Bastille Ventures, proposes a solution: “Patriotic investment zones” that would offer highly lucrative financial incentives to drive investment in those sectors. Mr. King argues that U.S. public pension funds, which have tens of billions of dollars tied up in Chinese venture capital, can be leveraged to spur economic growth at home.
“We can reverse this flow by offering a simple, radical incentive: zero federal income tax on pension distributions derived from patriotic investment zone investments,” he writes in an op-ed in The Times.
“Here’s how it would work: Currently, state pension funds pay no capital gains tax, but retirees pay ordinary income tax on their monthly checks. Under a patriotic investment zone structure, if a California teachers fund allocates 10% of its capital to domestic shipyards and rare earth mines, then 10% of every retiree’s monthly check becomes tax-free,” Mr. King says.