Tech
Jeff Bezos, you were so close to making a good point
On Wednesday morning, Jeff Bezos said in an interview on CNBC that Americans earning in the bottom half of incomes should not pay taxes.
“Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes?” Bezos said. “That’s $1,000 that could help with rent, or groceries, or anything… To me, it’s kind of absurd that we’re doing this. We shouldn’t be asking this nurse in Queens to send money to Washington. They should be sending her an apology.”
Bezos argues that the lower half of earners only pay 3% of total taxes, so people like that nurse are struggling to make ends meet while devoting about 16% of their salary (per Bezos’ estimation) to pay taxes that barely move the needle in Washington.
This moment of empathy may be surprising coming from Bezos, one of the wealthiest people in the world. Billionaires like Bezos have taken advantage of holes in the tax system so that they pay income tax on just a small percentage of their annual gains. In 2007 and 2011, Bezos didn’t pay income tax at all. According to a ProPublica investigation, Bezos’ wealth increased $127 billion from 2006 to 2018, but he reported $6.5 billion in income. While this amounted to a huge $1.4 billion tax payment, this represented a tax rate of only about 1 percent.
This isn’t illegal. Americans are not taxed on unrealized capital gains, meaning that if Amazon’s stock balloons to make Bezos even more wealthy, he will only pay taxes once he sells that stock. The ultra-wealthy do whatever they can to hold onto their investments. Instead, they take out massive loans using their stock as collateral, live off of those loans, and avoid paying taxes on them, since those loans are technically debt.
Has Jeff Bezos finally realized how unfair this is? Does he now understand the frustration of the middle class, who can’t just take out loans on their heaping piles of company stock to avoid reporting capital gains?
“[Senator] Elizabeth Warren has made this point repeatedly… you and others are able to pay a lower tax rate — even though you’re paying an enormous sum in taxes — a lower tax rate than maybe I am, for example,” CNBC reporter Andrew Ross Sorkin asked Bezos.
Bezos is hardly likely to invite Senator Warren for dinner at one of his many mansions. In his words, the United States has a spending problem, not a revenue problem.
“We already have the most progressive tax system in the world,” Bezos said. “The top 1 percent of taxpayers pay 40 percent of all the tax revenue. The bottom half pay only 3 percent.”
Yet Bezos still pays taxes at a lower rate than most Americans. That fact remains true, even after he paid taxes on the Amazon stock he sold to fund Blue Origin, his space exploration company.
“If people want me to pay more billions, then let’s have that debate. But don’t pretend that that’s going to solve the problem,” Bezos said. “You could double the taxes I pay, and it’s not going to help that [nurse] in Queens.”
It’s fundamentally difficult to imagine that we couldn’t find some productive use of the billions more dollars Bezos could be paying in tax, even when juxtaposed with a gargantuan $7.4 trillion federal budget.
That nurse in Queens would probably find it helpful if she could reliably take public transit to work, or if she could send her children to public schools that actually have enough supplies to go around. She would probably appreciate it if she could go to the hospital in an emergency without having to worry about how she will pay thousands of dollars in medical bills.
Of course, these fantastical scenarios depend on our faith in the government to adequately distribute our tax dollars in ways that would help.
Bezos added, “If you really want to have a progressive tax system, you also want that money to actually be helping and not just dissolving in, you know, in like administrative bureaucracy.”
But money looks different when it’s a real, tangible thing — a finite number that appears in your bank account every other week, which must immediately cover rent, groceries, car payments, student loans, and other debts.
If it’s naive to dream of what we could accomplish if billionaires paid their fair share in taxes, then so be it. It’s also naive to think we can build data centers on the moon.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
>
Tech
Planned Amazon data center could become the biggest climate polluter in the U.S.
As part of a planned data center in Pecos County, Texas, Amazon is investing in an on-site power plant that could become the largest source of climate pollution in the United States, according to The New York Times.
The NYT says the plant would burn natural gas and is permitted to release 33 million tons of carbon dioxide per year — more than any other power plant in the U.S.
In a statement, an Amazon spokesperson confirmed that the data center will “be powered by new on-site generation that won’t raise electricity costs for Texas families.” (Data centers face growing political opposition for a number of reasons, including their effect on electricity costs.)
AI has already had a significant impact on Amazon’s carbon emissions, which it reported were up 16% last year — the wrong direction for a company that pledged to eliminate its carbon emissions by 2040. And that could get worse as Amazon and tech companies back the development of huge natural gas plants to support their power-hungry data centers.
The Amazon spokesperson said, “The world looks different now than when we co-founded the climate pledge,” while also claiming, “Our commitment hasn’t changed.”
>
Tech
OpenAI acquires presentation startup NextSlide
NextSlide recently announced that it’s joining OpenAI, with the presentation startup’s team members now working on ChatGPT.
The NextSlide website currently displays a note from founder Ahmed Beshry describing the startup’s product as one “that could turn prompts, notes, documents, or research into a polished, editable presentation.”
The ultimate goal, Beshry said, was “to make visual communication more accessible and help more people express their ideas clearly.” So by joining OpenAI, the team will “continue pursuing that same mission: building AI products that help people create, communicate, and turn their ideas into meaningful work.”
The financial terms of the deal were not disclosed. In a note on LinkedIn, Beshry said the announcement is coming “a few months late,” as the acquisition took place “earlier this year.”
Beshry was previously a co-founder at Caper AI, a smart cart/cashier-less checkout startup acquired by Instacart in 2021.
>
Tech
X replaces ‘misaligned’ revenue sharing program with Original Content Rewards
X, the social media platform now owned by Elon Musk’s SpaceX, is shaking up how it pays influencers and creators.
In announcing the change, the company said it will be winding down its existing Revenue Sharing program and replacing it with something called Original Content Rewards. X will stop accepting new Revenue Sharing participants, while existing participants will continue earning money through September 7.
Then, starting on September 8, they’ll be able to apply for the new program. Participants will still need to subscribe to one of X’s Premium tiers, and there will be qualifying thresholds for follower count (500 verified followers) and impressions (500,000 Home Timeline impressions from verified users in 90 days), but it sounds like the big change is the emphasis on originality.
What counts as original content? X said it can include original reporting and analysis, photos and videos created by the poster, or memes and graphics they’ve designed themselves. Commentary also counts, but “if your content regularly incorporates material created by others, you’ll need to contribute meaningful original value for it to qualify under our original content guidelines.”
The company also included examples of posts that won’t count as original, such as those just copied over from another account, downloaded from one account and re-uploaded to your own, or reposting content “without meaningful transformation.”
This announcement follows repeated attempts by X to reform the Revenue Sharing program, for example reducing payments to aggregators and “clickbait” accounts in April. But these efforts have also prompted complaints from popular accounts profiting from the current system; Musk even reversed some of those changes (giving a creator’s local audience more weight when calculating payouts) after a backlash.
In a post about the new changes, X’s Allegra Jacchia wrote that the existing program “had reached a point where its incentives were misaligned.”
“Creators should be focused on bringing net new content to the platform instead of maximizing payouts,” she said. “We could have kept adding more rules and exceptions, but ultimately the better decision was to start fresh and build a program designed from day one to reward originality.”
Jacchia added that X be “continue refining the program, improving our models, and raising the bar over time.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
>
-
movies3 months agoSearch For Canadian TV Actor Stewart McLean Now Homicide Investigation
-
Fashion9 years agoThese ’90s fashion trends are making a comeback in 2017
-
Fashion9 years agoAccording to Dior Couture, this taboo fashion accessory is back
-
Fashion9 years agoModel Jocelyn Chew’s Instagram is the best vacation you’ve ever had
-
Fashion9 years agoYour comprehensive guide to this fall’s biggest trends
-
Fashion9 years agoEmily Ratajkowski channels back-to-school style
-
Fashion9 years ago9 Celebrities who have spoken out about being photoshopped
-
Fashion9 years agoA photo diary of the nightlife scene from LA To Ibiza
