Deterring Adversarial Access to Americans’ Data Act
Summary
The "Deterring Adversarial Access to Americans' Data Act" aims to amend the Internal Revenue Code of 1986 by denying certain tax credits and deductions to businesses that utilize technology controlled by foreign adversaries. This bill targets information and communications technology or services designed, developed, manufactured, or provided by specified foreign entities or those dependent on such technology.
The Act seeks to prevent foreign adversaries from accessing Americans' data by discouraging the use of their technology through financial disincentives. It modifies several sections of the Internal Revenue Code, including those related to bonus depreciation, research and experimental expenditures, business interest deductions, and research activity credits.
If enacted, the amendments would apply to taxable years beginning one year after the Act's enactment date.
Expected Effects
The bill will likely result in businesses shifting away from foreign adversary-controlled technology to maintain eligibility for tax credits and deductions. This shift could increase costs for some businesses in the short term as they transition to new technologies.
However, it could also stimulate domestic technology development and reduce the risk of data breaches or espionage linked to foreign adversaries. The long-term effect would be a more secure and competitive technological landscape.
Ultimately, the goal is to safeguard American data and intellectual property from foreign interference.
Potential Benefits
- Enhanced national security by reducing reliance on foreign adversary technology.
- Stimulation of domestic technology development and innovation.
- Increased data security and privacy for American citizens and businesses.
- Reduced risk of economic espionage and intellectual property theft.
- Strengthened supply chain resilience by diversifying technology sources.
Potential Disadvantages
- Increased costs for businesses that currently rely on foreign adversary-controlled technology.
- Potential disruptions during the transition to alternative technologies.
- Possible delays in accessing certain technologies if domestic alternatives are not readily available.
- Complexity in determining what constitutes "foreign adversary-controlled technology," leading to compliance challenges.
- Risk of retaliatory measures from foreign adversaries, impacting international trade and cooperation.
Constitutional Alignment
The bill's focus on national security and economic well-being aligns with the Constitution's broad objectives of providing for the common defense and promoting the general welfare, as stated in the Preamble. Congress's power to tax and regulate commerce is established in Article I, Section 8.
However, the bill's potential impact on individual liberties and privacy should be carefully considered to ensure compliance with the Fourth Amendment, which protects against unreasonable searches and seizures. The First Amendment's protection of free speech could also be relevant if the restrictions on technology use are seen as limiting access to information.
Overall, the bill appears to fall within the constitutional powers of Congress, but its implementation should be mindful of potential impacts on individual rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).