Monthly Archives: May 2021

May 26, 2021Federal Communications Commissioner Brendan Carr said Tuesday that hes concerned about the power of big tech to being able to remove applications like controversial chat website Parler.

The app, which is used by supporters of former President Donald Trump but has fostered an environment of hate-speech, was removed from the Apple and Google app stores in light of the Capitol riot of January 6. The platforms gave the app time to deal with its policies on those matters.

Carr said at a virtual event hosted by The Heritage Foundation that when technology companies have the power to pick and choose what to remove, it creates inherent biases and promotes an echo chamber, where Americans only hear one side of matter. He said there must be a push to promote more diverse opinions.

He noted that the big technology companies often point to their algorithms when called to account for inconsistent content moderation and account suspension. Facebook, for example, has said it removes thousands of groups and accounts, which often promote violence, from its platform regularly.

Carr noted the example of a New York Post article written about Hunter Bidens dealings with Ukraine, the merits of which were dismissed and the story allegedly suppressed by big tech platforms.

Big tech companies have been given too much power, Carr said.

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FCC Commissioner Carr Says Big Tech Has Too Much Power To Determine What Information Is Seen - BroadbandBreakfast.com

Theres plenty of wrangling in Congress right now regarding potential changes to Americas corporate tax code. The corporate tax rate currently stands at 21%. However, Sen. Joe Manchin, D-W.Va., prefers a 25% rate, while President Joe Biden is aiming for 28%. Regardless of the rate, though, Congress must still address an overlooked problem: Plenty of larger U.S. multinational corporations are continuing to avoid paying their fair share of taxes.

Corporate tax reform is obviously a thorny issue. But several of Americas largest tech companies just came out in favor of Bidens suggested 28% rate. Through a partnership with the brand-new Chamber of Progress, Amazon, Google, and Facebook have jointly offered support for Bidens proposal. Its a nice gesture on their part, but rather hollowsince theyll hardly be affected by any tax increase.

Last year, the Coalition for a Prosperous America published a report showing U.S. multinational corporations paid an average of only 8.7% in corporate taxes in 2019far less than the current 21% rate. Large tech companies remain some of the prime beneficiaries of this tax avoidance since they repeatedly shift much of their profits to Bermuda and other tax haven nations.

Amazon is a perfect example. The e-commerce giant paid zero state or federal taxes in 2018 despite earning more than $11 billion in profits. While enjoying massive revenues, Amazon simply took advantage of current tax loopholesand assigned much of its profit to low-tax countries outside of the U.S.

When companies like Amazon shift profit abroad, they shrink the available U.S. tax base. And so its somewhat disingenuous for them to support the 28% Biden tax proposal because it will hardly affect their bottom line. Essentially, if Congress votes to raise Americas corporate tax rate by 7% but doesnt simultaneously address tax avoidance, multinational corporations would likely face only a small increase. However, domestic companies would have to carry the full amount.

Gaming the system like this offers a competitive advantage. Amazon paid a mere 4.3% average tax rate over the last three years while competing with thousands of brick-and-mortar retailers across the country. If the U.S. corporate tax rate climbs to 28%, these Main Street businesses will bear an outsized portion of the increasenot Amazon.

Concerns about such tax disparities arent new, though. The Coalition for a Prosperous America estimates that multinationals avoided paying $97.8 billion in corporate taxes in 2019. In response, the Biden administration has even offered some potential solutions through its Made in America tax plan. However, the complexity of these proposals could make them unwieldy and hard to sell in Congress.

Whats needed is simplicity and equity. Since Bidens Build Back Better plan aims to strengthen domestic U.S. manufacturing, its time to implement a system that fully taxes all multinational companies. The logical answer is to adopt a system of sales factor apportionment in order to impose taxes specifically on the location of a companys final sale. That means if a company generates $1 billion of profit on its U.S. sales, it should pay U.S. corporate taxes on that $1 billion. No more convoluted profit calculationsor claiming residence in an obscure, offshore locationin order to skirt U.S. tax obligations.

Americas large tech companies are among the multinationals that keep dodging a full tax load. Its somewhat meaningless, then, that they appear to be supportive of a tax hike. In reality, their main goal is to prevent anything that would include more of their profits in the U.S. tax base.

The American people already recognize that its unfair for multinational firms to sell products in the U.S. market but pay little or no federal taxes. That includes the tech firms that consistently generate massive profits from U.S. consumers. Its time to shift to an SFA system that closes loopholes and ensures that all companies pay their fair share of taxes.

David Morse is tax policy director at the Coalition for a Prosperous America Education Fund. Follow him on Twitter @CentristinIdaho. He wrote this for InsideSources.com.

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Morse: Don't be fooled by Big Tech's apparent support of higher corporate taxes - Gazettextra

WASHINGTONLina Khan, a progressive champion nominated by President Biden for a key enforcement post, wants to transform antitrust policy into a bulwark against corporate power by blocking more mergers, attacking monopolistic practices and potentially breaking up some of Americas largest companies.

Ms. Khan, 32 years old, is awaiting Senate confirmation for a Democratic seat on the five-member Federal Trade Commission after she was cleared by the Senate Commerce Committee. She has risen to prominenceand gained bipartisan supportas Democrats and Republicans alike have said lax antitrust enforcement, especially in the tech sector, has allowed dominant firms to hobble rivals and stifle competition.

Her targets have included not just Big Tech but also Big Chocolate and others. She has argued for hawkish positions that would overhaul legal doctrine and go well beyond the approach of recent antitrust enforcers. While her most ardent supporters believe such changes are long overdue, her views have prompted a debate on whether her approach is realistic and potentially so sweeping that it could prove jarring to the economy.

Stepped-up antitrust enforcement is one thing, said Howard University law professor Andrew Gavil, who was a top FTC staffer the last time Democrats controlled the commission. Changing the standards is a different matter, he said.

Mr. Gavil, who favors more enforcement, said Ms. Khan will have to consider how to translate her views into something that can be applied in practice. Thats more challenging than simply being a critic on the outside, he said.

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Big Tech Adversary Poised to Take Assertive FTC Antitrust Role - The Wall Street Journal

Rising concerns about higher inflation and interest rates are on investors' minds lately, and many are wondering howthiswill affect some of thebiggest technology stocksgoing forward. These companies have been huge winners over the years and benefited greatly from a pandemic-fueled boost in 2020, so investors could very well be taking some profits off the table.

There are some smaller, high-qualitybusinesses, however, that have been beaten down over the past few months for various reasons, but still have solid long-term outlooks. Here are threegrowth stocksthat are on sale right now and are worth taking a look at.

Image source: Getty Images.

With astock price that has fallen 31% since March 1, Etsy(NASDAQ:ETSY), the leading online marketplace for handcrafted and special goods, should be on every investor's watch list.

Thecompany's 4.7 million active sellers and 90.7 million active buyers accounted for $3.1billion of gross merchandise sales in the most recent quarter, an increase of 132% from the prior-year period. Revenue (up 142%) and net income (up 1,048%) have also increased significantly, demonstrating just how valuable the e-commerce platform is.

Management's comments regarding a deceleration of growththisquarter, on the backs of a record-breaking 2020,certainly pressured the stock. A slowdown is to be expected after last year, but Etsy will continue riding the secular shift to online shopping for many years to come.

Etsy empowers and supports local entrepreneurs looking to showcase their products, and it provides consumers access to goods no one else sells. In a 2020 survey, 88%of Etsy buyers agreed that the site had items they can't find anywhere else.

Thebusinesscurrentlyoperatesin the U.S., U.K., Canada, Germany, Australia, France, and India, and its sellersoffereverything from home furnishings and jewelry to craft supplies and beauty products. There is still a massive untapped market opportunity in front of Etsy, supporting growth for a long time.

Peloton Interactive(NASDAQ:PTON) has become somewhat of a household name, but its stock, which has dropped 40% since mid-January, hasfallen out of favorwith Wall Street.

The connected fitness company's business surged during the pandemic (sales soared more than 100% in each of the past four quarters) as people stuck at home searched for ways to work out. But persistent supply chain issues leading to long wait times and delayed deliveries have resulted in irritated consumers.

Further adding to the list of problems is the recent recallof its Tread+ and Tread treadmills. This was after Peloton initially resisted a warning by the Consumer Product Safety Commission that cited numerous injuries and one child death. Not a good public relations showing.

But let's face it. Customers don't just use Peloton's equipment and digital app. They rave about them. The company has a cult-like following primarily due to its easy-to-use software and social connectivity. Peloton makes working out fun, while adding a powerful interactive element to the mix.

Memberchurnin Q3 was an impressive 0.31%, andthe average number of monthly workouts (a measure of engagement) was 26 in the quarter, a record for the company.

Peloton's flagship product, the Peloton bike, is back to pre-pandemicdelivery wait times. The company has already released asoftwareupdatefor its recalled treadmills and is working on a hardware fix to enhance safety. This should ease any shareholder anxiety.

Peloton still has the potential to be a global-scale fitness company. These recent stumbles are just an opportunity to fix mistakes and bolster its competitive positioning.

The streaming wars are in full swing, and no company sits more perfectly in the middle of it all than Roku(NASDAQ:ROKU). The streaming player and platformbusinesscontinues to register solid gains, with revenue and gross profit up 79% and 132%, respectively, in the most recent quarter. Thecompanynow has 53.6millionactive accounts that watched 18.3 billion hours of content in the three-month period.

The stock price has diverged fromthese strong fundamentals. Since Feb. 16, Roku is down 30%, which could be a result of the gradual reopening of the economy that will leave consumers spending less time at home. This is certainly warranted, but management is expecting another blowout quarter coming up, a sign that momentum hasn't slowed yet.

What separates Roku from the streaming service companies you're probably more familiar with is that it actually creates the platform for these content companies to reach viewers, while at the same time providing an avenue for corporations to advertise their products and services on a streaming ecosystem.

Roku is quite literally building the TV operating system of the future. Its platform segment, which is where advertising and subscription revenue is accounted for, sports a rapidly expanding gross margin of nearly 67%.Thisbusinessis on its way to producing profits at scale.

Over time, as more people stop paying for traditional cable-TV subscriptions and move to streaming, Roku stands to benefit immensely. It isestimated that 27% of U.S. households will cut the cord in 2021, providing a powerful and durable tailwind for Roku.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Big Tech Tumbles, But These 3 Growth Stocks Are On Sale Now - Motley Fool

The world's largest game streaming service Twitch said on Wednesday that players will be able to add a transgender label to their videos - a move the company said would aid inclusion among its 30 million daily gamers.

Twitch, which lets users broadcast themselves playing video games, introduced "transgender", "bisexual", "Black," and "disabled" among more than 350 new tags - labels that users can add to their videos.

"This has been one of the most popular requests we've heard, and the simple truth is that we should have done this sooner," Amazon-owned Twitch said in a blog last week.

It then broadcast the news to users on Wednesday.

Tech firms have come under pressure to make their products more inclusive of trans people, with Instagram and LinkedIn allowing users to add their pronouns to profiles, amid fierce debate over what it means to be male or female.

A raft of US states want to bar young, trans Americans from playing school sports or getting medical help, with a record 18 "anti-LGBTQ" state bills signed into law this year, according to advocacy group Human Rights Campaign.

"Adding that trans tag it makes it very, very easy for us to find each other and to connect with each other," Casey, who streams under the username CaseyExplosion and did not want to give her full name, told the Thomson Reuters Foundation.

"That's something that is vital because for a lot of gaming spaces, if you're LGBT, there's a sort of unspoken, 'Don't ask, don't tell'."

The existing 'LGBTQIA' tag was not specific enough to help trans people easily connect, particularly as it was used by many people who considered themselves 'allies' of the community, said Laura Dale, who streams herself playing Pokemon and Zelda games as LauraKBuzz.

"LGBT is a pretty broad range of identities," she said.

Twitch says about 70 percent of its users are aged 13 to 34. They collectively watch 68 million to 73 million hours of game play each day, according to unofficial data site Twitch Tracker.

Thomson Reuters 2021

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Twitch Adds 'Transgender' Tag as Big Tech Vies to Be Inclusive - Gadgets 360

Bill Cotterell, Your Turn Published 6:02 a.m. ET May 27, 2021

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Gov. Ron DeSantis did what he needed to do in signing Floridas new Big Tech law, even though the statute fairly shouts its unconstitutionality.

The Constitutions very First Amendment, the cherry on top of the whole Bill of Rights, says the government cant infringe on freedom of the press or freedom of speech. If they could have foreseen Facebook, Twitter and the sewer that so much of social media hasbecome, the Founders probably would have written it differently.

But they didnt.

So as much as we might wish to make those information giants stop de-platforming those whose ideas they find false or dangerous, we cant. Its their platform.

The bill DeSantis signed would impose fines of $250,000 a day on tech giants for removing statewide political candidates from their platforms. The fine would be $25,000 a day for sending a non-statewide candidate to Coventry.

More: GOP-controlled Florida Legislature approves elections overhaul, social media crackdown

Individual users stifled by the companies can sue them, under the law DeSantis signed in Miami on Monday. Users must be notified when their postings are censored or tagged with a warning of false or disputed information.

An odd part of the law provides an exemption for companies owning theme parks like Walt Disney Co., which owns the Disney+ streaming service. A skeptic might wonder why, if the governor and Republican Legislature are so appalled by big-tech censorship and liberal bias on the internet, their solution would exempt Floridas most famous tourism company.

The law could be named for former President Donald Trump, whose exile from Twitter and Facebook sparked cries of censorship and liberal bias in several states with Republican governors and lawmakers. Trumps continuing lies about a rigged 2020 election, and his Jan. 6 performance that prompted many members of his cult to attack the U.S. Capitol, were the basis for his social-media banishment.

DeSantis, who owes his election to Trump, said Facebook, Twitter and the others use secret algorithms and shadow banning to shape debates and control the flow of information. They claim to be neutral a virtual wall on which we can all scrawl a message or paste a poster but they act as the proverbial Big Brother and 2021 looks an awful lot like the fictitious 1984.

Hes right about the need for making the tech giants more responsive. Congress, not the states, should hold them responsible for knowingly and continuously spreading libelous or deliberately hurtful untruths that get posted maliciously.

For example, just last year Trump Tweeted a vile smear about the death of an aide to former Pensacola congressman Joe Scarborough, even though the womans family pleaded with Twitter to stop it.

DeSantis is also right, mostly, about a prevailing liberal bias in what gets quashed online. Funny how that just happens to follow a pattern. But its not governments job to ascribe motives to a decision to block a post or a person, or to decide whether a comment is deleted for partisan reasons.

Long before anyone heard of Facebook or Twitter, Florida set an instructive legal precedent that should apply here. Almost 50 years ago, we had a right to reply law requiring newspapers to print rebuttal essays from candidates they did not endorse on their editorial pages. The Miami Herald refused to run a rebuttal submitted by a spurned legislative candidate, he sued, and the Supreme Courtthrew out the 1913 statute.

The ruling means the press cannot be forced to publish something, any more than it can be forbidden to publish something.

Lawyer DeSantis, if he were serious about combatting cyber-censorship, might have pondered such a precedent before getting his friends in the Legislature to give him the new statute. But his real purpose here is to cater some would say pander to unhappy Trump supporters, whose votes hell need when seeking a second term next year.

Mark Zuckerberg et. al. have plenty of lawyers to brush aside the Florida law, and those popping up in other states. We taxpayers will foot the bill for defending our new statute, but that happens a lot.

When some judges chuck the whole thing, DeSantis can tell Trumps disgruntled followers he tried. That ought to gruntle them.

Cotterell(Photo: Democrat files)

Bill Cotterell is a retired Tallahassee Democrat capitol reporter who writes a twice-weekly column. He can be reached at bcotterell@tallahassee.com.

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Florida governor will lose his fight with cyber censors and he knows it | Bill Cotterell - Tallahassee Democrat