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What Does It Actually Mean When a Company Says, “We Do Not Sell Your Data”?

Above: Photo Credit / Unsplash

Experts say the privacy promise—ubiquitous in online services and apps—obscures the truth about how companies use personal data

You’ve likely run into this claim from tech giants before: “We do not sell your personal data.” 

Companies from Facebook to Google to Twitter repeat versions of this statement in their privacy policies, public statements, and congressional testimony. And when taken very literally, the promise is true: Despite gathering masses of personal data on their users and converting that data into billions of dollars in profits, these tech giants do not directly sell their users’ information the same way data brokers directly sell data in bulk to advertisers

But the disclaimers are also a distraction from all the other ways tech giants use personal data for profit and, in the process, put users’ privacy at risk, experts say. 

Lawmakers, watchdog organizations, and privacy advocates have all pointed out ways that advertisers can still pay for access to data from companies like Facebook, Google, and Twitter without directly purchasing it. (Facebook spokesperson Emil Vazquez declined to comment and Twitter spokesperson Laura Pacas referred us to Twitter’s privacy policy. Google did not respond to requests for comment.)

And focusing on the term “sell” is essentially a sleight of hand by tech giants, said Ari Ezra Waldman, a professor of law and computer science at Northeastern University.

“[Their] saying that they don’t sell data to third parties is like a yogurt company saying they’re gluten-free. Yogurt is naturally gluten-free,” Waldman said. “It’s a misdirection from all the other ways that may be more subtle but still are deep and profound invasions of privacy.”

Those other ways include everything from data collected from real-time bidding streams (more on that later), to targeted ads directing traffic to websites that collect data, to companies using the data internally.

How Is My Data at Risk if It’s Not Being Sold? 

Even though companies like Facebook and Google aren’t directly selling your data, they are using it for targeted advertising, which creates plenty of opportunities for advertisers to pay and get your personal information in return.

The simplest way is through an ad that links to a website with its own trackers embedded, which can gather information on visitors including their IP address and their device IDs. 

Advertising companies are quick to point out that they sell ads, not data, but don’t disclose that clicking on these ads often results in a website collecting personal data. In other words, you can easily give away your information to companies that have paid to get an ad in front of you.

If the ad is targeted toward a certain demographic, then advertisers would also be able to infer personal information about visitors who came from that ad, Bennett Cyphers, a staff technologist at the Electronic Frontier Foundation, said. 

For example, if there’s an ad targeted at expectant mothers on Facebook, the advertiser can infer that everyone who came from that link is someone Facebook believes is expecting a child. Once a person clicks on that link, the website could collect device IDs and an IP address, which can be used to identify a person. Personal information like “expecting parent” could become associated with that IP address.  

“You can say, ‘Hey, Google, I want a list of people ages 18–35 who watched the Super Bowl last year.’ They won’t give you that list, but they will let you serve ads to all those people,” Cyphers said. “Some of those people will click on those ads, and you can pretty easily figure out who those people are. You can buy data, in a sense, that way.” 

Then there’s the complicated but much more common way that advertisers can pay for data without it being considered a sale, through a process known as “real-time bidding.” 

Often, when an ad appears on your screen, it wasn’t already there waiting for you to show up. Digital auctions are happening in milliseconds before the ads load, where websites are selling screen real estate to the highest bidder in an automated process. 

Visiting a page kicks off a bidding process where hundreds of advertisers are simultaneously sent data like an IP address, a device ID, the visitor’s interests, demographics, and location. The advertisers use this data to determine how much they’d like to pay to show an ad to that visitor, but even if they don’t make the winning bid, they have already captured what may be a lot of personal information.  

With Google ads, for instance, the Google Ad Exchange sends data associated with your Google account during this ad auction process, which can include information like your age, location, and interests.

The advertisers aren’t paying for that data, per se; they’re paying for the right to show an advertisement on a page you visited. But they still get the data as part of the bidding process, and some advertisers compile that information and sell it, privacy advocates said.

In May, a group of Google users filed a federal class action lawsuit against Google in the U.S. District Court for the Northern District of California alleging the company is violating its claims to not sell personal information by operating its real-time bidding service.

The lawsuit argues that even though Google wasn’t directly handing over your personal data in exchange for money, its advertising services allowed hundreds of third parties to essentially pay and get access to information on millions of people. The case is ongoing. 

“We never sell people’s personal information and we have strict policies specifically prohibiting personalized ads based on sensitive categories,” Google spokesperson José Castañeda told the San Francisco Chronicle in May

Real-time bidding has also drawn scrutiny from lawmakers and watchdog organizations for its privacy implications.

In January, Simon McDougall, deputy commissioner of the United Kingdom’s Information Commissioner’s Office, announced in a statement that the agency was continuing its investigation of real-time bidding (RTB), which if not properly disclosed, may violate the European Union’s General Data Protection Regulation.

“The complex system of RTB can use people’s sensitive personal data to serve adverts and requires people’s explicit consent, which is not happening right now,” McDougall said. “Sharing people’s data with potentially hundreds of companies, without properly assessing and addressing the risk of these counterparties, also raises questions around the security and retention of this data.”

And in April, a bipartisan group of U.S. senators sent a letter to ad tech companies involved in real-time bidding, including Google. Their main concern: foreign companies and governments potentially capturing massive amounts of personal data about Americans. 

“Few Americans realize that some auction participants are siphoning off and storing ‘bidstream’ data to compile exhaustive dossiers about them,” the letter said. “In turn, these dossiers are being openly sold to anyone with a credit card, including to hedge funds, political campaigns, and even to governments.” 

On May 4, Google responded to the letter, telling lawmakers that it doesn’t share personally identifiable information in bid requests and doesn’t share demographic information during the process.

“We never sell people’s personal information and all ad buyers using our systems are subject to stringent policies and standards, including restrictions on the use and retention of information they receive,” Mark Isakowitz, Google’s vice president of government affairs and public policy, said in the letter.

What Does It Mean to “Sell” Data?

Advocates have been trying to expand the definition of “sell” beyond a straightforward transaction. 

The California Consumer Privacy Act, which went into effect in January 2020, attempted to cast a wide net when defining “sale,” beyond just exchanging data for money. The law considers it a sale if personal information is sold, rented, released, shared, transferred, or communicated (either orally or in writing) from one business to another for “monetary or other valuable consideration.” 

And companies that sell such data are required to disclose that they’re doing so and allow consumers to opt out. 

“We wrote the law trying to reflect how the data economy actually works, where most of the time, unless you’re a data broker, you’re not actually selling a person’s personal information,” said Mary Stone Ross, chief privacy officer at OSOM Products and a co-author of the law. “But you essentially are. If you are a social media company and you’re providing advertising and people pay you a lot of money, you are selling access to them.” 

But that doesn’t mean it’s always obvious what sorts of personal data a company collects and sells. 

In T-Mobile’s privacy policy, for instance, the company says it sells compiled data in bulk, which it calls “audience segments.” The policy states that audience segment data for sale doesn’t contain identifiers like your name and address but does include your mobile advertising ID. 

Mobile advertising IDs can easily be connected to individuals through third-party companies.  

Nevertheless, T-Mobile’s privacy policy says the company does “not sell information that directly identifies customers.”

T-Mobile spokesperson Taylor Prewitt didn’t provide an answer to why the company doesn’t consider advertising IDs to be personal information but said customers have the right to opt out of that data being sold. 

So What Should I Be Looking for in a Privacy Policy? 

The next time you look at a privacy policy, which few people ever really do, don’t just focus on whether or not the company says it sells your data. That’s not necessarily the best way to assess how your information is traveling and being used. 

And even if a privacy policy says that it doesn’t share private information beyond company walls, the data collected can still be used for purposes you might feel uncomfortable with, like training internal algorithms and machine learning models. (See Facebook’s use of one billion pictures from Instagram, which it owns, to improve its image recognition capability.)

Consumers should look for deletion and retention policies instead, said Lindsey Barrett, a privacy expert and until recently a fellow at Georgetown Law. These are policies that spell out how long companies keep data, and how to get it removed. 

She noted that these statements hold a lot more weight than companies promising not to sell your data. 

“People don’t have any meaningful transparency into what companies are doing with their data, and too often, there are too few limits on what they can do with it,” Barrett said. “The whole ‘We don’t sell your data’ doesn’t say anything about what the company is doing behind closed doors.” 

This article was originally published on The Markup and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.


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Heeding Steve Bannon’s Call, Election Deniers Organize to Seize Control of the GOP — and Reshape America’s Elections

After Steve Bannon urged his followers to take over local-level GOP positions, the plan went viral across far-right media.

One of the loudest voices urging Donald Trump’s supporters to push for overturning the presidential election results was Steve Bannon. “We’re on the point of attack,” Bannon, a former Trump adviser and far-right nationalist, pledged on his popular podcast on Jan. 5. “All hell will break loose tomorrow.” The next morning, as thousands massed on the National Mall for a rally that turned into an attack on the Capitol, Bannon fired up his listeners: “It’s them against us. Who can impose their will on the other side?”

When the insurrection failed, Bannon continued his campaign for his former boss by other means. On his “War Room” podcast, which has tens of millions of downloads, Bannon said President Trump lost because the Republican Party sold him out. “This is your call to action,” Bannon said in February, a few weeks after Trump had pardoned him of federal fraud charges.

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

The solution, Bannon announced, was to seize control of the GOP from the bottom up. Listeners should flood into the lowest rung of the party structure: the precincts. “It’s going to be a fight, but this is a fight that must be won, we don’t have an option,” Bannon said on his show in May. “We’re going to take this back village by village … precinct by precinct.”

Precinct officers are the worker bees of political parties, typically responsible for routine tasks like making phone calls or knocking on doors. But collectively, they can influence how elections are run. In some states, they have a say in choosing poll workers, and in others they help pick members of boards that oversee elections.

After Bannon’s endorsement, the “precinct strategy” rocketed across far-right media. Viral posts promoting the plan racked up millions of views on pro-Trump websites, talk radio, fringe social networks and message boards, and programs aligned with the QAnon conspiracy theory.

Suddenly, people who had never before showed interest in party politics started calling the local GOP headquarters or crowding into county conventions, eager to enlist as precinct officers. They showed up in states Trump won and in states he lost, in deep-red rural areas, in swing-voting suburbs and in populous cities.

In Wisconsin, for instance, new GOP recruits are becoming poll workers. County clerks who run elections in the state are required to hire parties’ nominees. The parties once passed on suggesting names, but now hardline Republican county chairs are moving to use those powers.

“We’re signing up election inspectors like crazy right now,” said Outagamie County party chair Matt Albert, using the state’s formal term for poll workers. Albert, who held a “Stop the Steal” rally during Wisconsin’s November recount, said Bannon’s podcast had played a role in the burst of enthusiasm.

ProPublica contacted GOP leaders in 65 key counties, and 41 reported an unusual increase in signups since Bannon’s campaign began. At least 8,500 new Republican precinct officers (or equivalent lowest-level officials) joined those county parties. We also looked at equivalent Democratic posts and found no similar surge.

“I’ve never seen anything like this, people are coming out of the woodwork,” said J.C. Martin, the GOP chairman in Polk County, Florida, who has added 50 new committee members since January. Martin had wanted congressional Republicans to overturn the election on Jan. 6, and he welcomed this wave of like-minded newcomers. “The most recent time we saw this type of thing was the tea party, and this is way beyond it.”

Bannon, through a spokesperson, declined to comment.

While party officials largely credited Bannon’s podcast with driving the surge of new precinct officers, it’s impossible to know the motivations of each new recruit. Precinct officers are not centrally tracked anywhere, and it was not possible to examine all 3,000 counties nationwide. ProPublica focused on politically competitive places that were discussed as targets in far-right media.

The tea party backlash to former President Barack Obama’s election foreshadowed Republican gains in the 2010 midterm. Presidential losses often energize party activists, and it would not be the first time that a candidate’s faction tried to consolidate control over the party apparatus with the aim of winning the next election.

What’s different this time is an uncompromising focus on elections themselves. The new movement is built entirely around Trump’s insistence that the electoral system failed in 2020 and that Republicans can’t let it happen again. The result is a nationwide groundswell of party activists whose central goal is not merely to win elections but to reshape their machinery.

“They feel President Trump was rightfully elected president and it was taken from him,” said Michael Barnett, the GOP chairman in Palm Beach County, Florida, who has enthusiastically added 90 executive committee members this year. “They feel their involvement in upcoming elections will prevent something like that from happening again.”

It has only been a few months — too soon to say whether the wave of newcomers will ultimately succeed in reshaping the GOP or how they will affect Republican prospects in upcoming elections. But what’s already clear is that these up-and-coming party officers have notched early wins.

In Michigan, one of the main organizers recruiting new precinct officers pushed for the ouster of the state party’s executive director, who contradicted Trump’s claim that the election was stolen and who later resigned. In Las Vegas, a handful of Proud Boys, part of the extremist group whose members have been charged in attacking the Capitol, supported a bid to topple moderates controlling the county party — a dispute that’s now in court.

In Phoenix, new precinct officers petitioned to unseat county officials who refused to cooperate with the state Senate Republicans’ “forensic audit” of 2020 ballots. Similar audits are now being pursued by new precinct officers in Michigan and the Carolinas. Outside Atlanta, new local party leaders helped elect a state lawmaker who championed Georgia’s sweeping new voting restrictions.

And precinct organizers are hoping to advance candidates such as Matthew DePerno, a Michigan attorney general hopeful who Republican state senators said in a report had spread “misleading and irresponsible” misinformation about the election, and Mark Finchem, a member of the Oath Keepers militia who marched to the Capitol on Jan. 6 and is now running to be Arizona’s top elections official. DePerno did not respond to requests for comment, and Finchem asked for questions to be sent by email and then did not respond. Finchem has said he did not enter the Capitol or have anything to do with the violence. He has also said the Oath Keepers are not anti-government.

When Bannon interviewed Finchem on an April podcast, he wrapped up a segment about Arizona Republicans’ efforts to reexamine the 2020 results by asking Finchem how listeners could help. Finchem answered by promoting the precinct strategy. “The only way you’re going to see to it this doesn’t happen again is if you get involved,” Finchem said. “Become a precinct committeeman.”

Some of the new precinct officers were in the crowd that marched to the Capitol on Jan. 6, according to interviews and social media posts; one Texas precinct chair was arrested for assaulting police in Washington. He pleaded not guilty. Many of the new activists have said publicly that they support QAnon, the online conspiracy theory that believes Trump was working to root out a global child sex trafficking ring. Organizers of the movement have encouraged supporters to bring weapons to demonstrations. In Las Vegas and Savannah, Georgia, newcomers were so disruptive that they shut down leadership elections.

“They’re not going to be welcomed with open arms,” Bannon said, addressing the altercations on an April podcast. “But hey, was it nasty at Lexington?” he said, citing the opening battle of the American Revolution. “Was it nasty at Concord? Was it nasty at Bunker Hill?”

Bannon plucked the precinct strategy out of obscurity. For more than a decade, a little-known Arizona tea party activist named Daniel J. Schultz has been preaching the plan. Schultz failed to gain traction, despite winning a $5,000 prize from conservative direct-mail pioneer Richard Viguerie in 2013 and making a 2015 pitch on Bannon’s far-right website, Breitbart. Schultz did not respond to repeated requests for comment.

In December, Schultz appeared on Bannon’s podcast to argue that Republican-controlled state legislatures should nullify the election results and throw their state’s Electoral College votes to Trump. If lawmakers failed to do that, Bannon asked, would it be the end of the Republican Party? Not if Trump supporters took over the party by seizing precinct posts, Schultz answered, beginning to explain his plan. Bannon cut him off, offering to return to the idea another time.

That time came in February. Schultz returned to Bannon’s podcast, immediately preceding Mike Lindell, the MyPillow CEO who spouts baseless conspiracy theories about the 2020 election.

“We can take over the party if we invade it,” Schultz said. “I can’t guarantee you that we’ll save the republic, but I can guarantee you this: We’ll lose it if we conservatives don’t take over the Republican Party.”

Bannon endorsed Schultz’s plan, telling “all the unwashed masses in the MAGA movement, the deplorables” to take up this cause. Bannon said he had more than 400,000 listeners, a count that could not be independently verified.

Bannon brought Schultz back on the show at least eight more times, alongside guests such as embattled Florida congressman Matt Gaetz, a leading defender of people jailed on Capitol riot charges.

The exposure launched Schultz into a full-blown far-right media tour. In February, Schultz spoke on a podcast with Tracy “Beanz” Diaz, a leading popularizer of QAnon. In an episode titled “THIS Is How We Win,” Diaz said of Schultz, “I was waiting, I was wishing and hoping for the universe to deliver someone like him.”

Schultz himself calls QAnon “a joke.” Nevertheless, he promoted his precinct strategy on at least three more QAnon programs in recent months, according to Media Matters, a Democratic-aligned group tracking right-wing content. “I want to see many of you going and doing this,” host Zak Paine said on one of the shows in May.

Schultz’s strategy also got a boost from another prominent QAnon promoter: former National Security Adviser Michael Flynn, who urged Trump to impose martial law and “rerun” the election. On a May online talk show, Flynn told listeners to fill “thousands of positions that are vacant at the local level.”

Precinct recruitment is now “the forefront of our mission” for Turning Point Action, according to the right-wing organization’s website. The group’s parent organization bussed Trump supporters to Washington for Jan. 6, including at least one person who was later charged with assaulting police. He pleaded not guilty. In July, Turning Point brought Trump to speak in Phoenix, where he called the 2020 election “the greatest crime in history.” Outside, red-capped volunteers signed people up to become precinct chairs.

Organizers from around the country started huddling with Schultz for weekly Zoom meetings. The meetings’ host, far-right blogger Jim Condit Jr. of Cincinnati, kicked off a July call by describing the precinct strategy as the last alternative to violence. “It’s the only idea,” Condit said, “unless you want to pick up guns like the Founding Fathers did in 1776 and start to try to take back our country by the Second Amendment, which none of us want to do.”

By the next week, though, Schultz suggested the new precinct officials might not stay peaceful. Schultz belonged to a mailing list for a group of military, law enforcement and intelligence veterans called the “1st Amendment Praetorian” that organizes security for Flynn and other pro-Trump figures. Back in the 1990s, Schultz wrote an article defending armed anti-government militias like those involved in that decade’s deadly clashes with federal agents in Ruby Ridge, Idaho, and Waco, Texas.

“Make sure everybody’s got a baseball bat,” Schultz said on the July strategy conference call, which was posted on YouTube. “I’m serious about this. Make sure you’ve got people who are armed.”

The sudden demand for low-profile precinct positions baffled some party leaders. In Fort Worth, county chair Rick Barnes said numerous callers asked about becoming a “precinct committeeman,” quoting the term used on Bannon’s podcast. That suggested that out-of-state encouragement played a role in prompting the calls, since Texas’s term for the position is “precinct chair.” Tarrant County has added 61 precinct chairs this year, about a 24% increase since February. “Those podcasts actually paid off,” Barnes said.

For weeks, about five people a day called to become precinct chairs in Outagamie County, Wisconsin, southwest of Green Bay. Albert, the county party chair, said he would explain that Wisconsin has no precinct chairs, but newcomers could join the county party — and then become poll workers. “We’re trying to make sure that our voice is now being reinserted into the process,” Albert said.

Similarly, the GOP in Cumberland County, Pennsylvania, is fielding a surge of volunteers for precinct committee members, but also for election judges or inspectors, which are party-affiliated elected positions in that state. “Who knows what happened on Election Day for real,” county chair Lou Capozzi said in an interview. The county GOP sent two busloads of people to Washington for Jan. 6 and Capozzi said they stayed peaceful. “People want to make sure elections remain honest.”

Elsewhere, activists inspired by the precinct strategy have targeted local election boards. In DeKalb County, east of Atlanta, the GOP censured a long-serving Republican board member who rejected claims of widespread fraud in 2020. To replace him, new party chair Marci McCarthy tapped a far-right activist known for false, offensive statements. The party nominees to the election board have to be approved by a judge, and the judge in this case rejected McCarthy’s pick, citing an “extraordinary” public outcry. McCarthy defended her choice but ultimately settled for someone less controversial.

In Raleigh, North Carolina, more than 1,000 people attended the county GOP convention in March, up from the typical 300 to 400. The chair they elected, Alan Swain, swiftly formed an “election integrity committee” that’s lobbying lawmakers to restrict voting and audit the 2020 results. “We’re all about voter and election integrity,” Swain said in an interview.

In the rural western part of the state, too, a wave of people who heard Bannon’s podcast or were furious about perceived election fraud swept into county parties, according to the new district chair, Michele Woodhouse. The district’s member of Congress, Rep. Madison Cawthorn, addressed a crowd at one county headquarters on Aug. 29, at an event that included a raffle for a shotgun.

“If our election systems continue to be rigged and continue to be stolen, it’s going to lead to one place, and it’s bloodshed,” Cawthorn said, in remarks livestreamed on Facebook, shortly after holding the prize shotgun, which he autographed. “That’s right,” the audience cheered. Cawthorn went on, “As much as I’m willing to defend our liberty at all costs, there’s nothing that I would dread doing more than having to pick up arms against a fellow American, and the way we can have recourse against that is if we all passionately demand that we have election security in all 50 states.”

After Cawthorn referred to people arrested on Jan. 6 charges as “political hostages,” someone asked, “When are you going to call us to Washington again?” The crowd laughed and clapped as Cawthorn answered, “We are actively working on that one.”

Schultz has offered his own state of Arizona as a proof of concept for how precinct officers can reshape the party. The result, Schultz has said, is actions like the state Senate Republicans’ “forensic audit” of Maricopa County’s 2020 ballots. The “audit,” conducted by a private firm with no experience in elections and whose CEO has spread conspiracy theories, has included efforts to identify fraudulent ballots from Asia by searching for traces of bamboo. Schultz has urged activists demanding similar audits in other states to start by becoming precinct officers.

“Because we’ve got the audit, there’s very heightened and intense public interest in the last campaign, and of course making sure election laws are tightened,” said Sandra Dowling, a district chair in northwest Maricopa and northern Yuma County whose precinct roster grew by 63% in less than six months. Though Dowling says some other district chairs screen their applicants, she doesn’t. “I don’t care,” she said.

One chair who does screen applicants is Kathy Petsas, a lifelong Republican whose district spans Phoenix and Paradise Valley. She also saw applications explode earlier this year. Many told her that Schultz had recruited them, and some said they believed in QAnon. “Being motivated by conspiracy theories is no way to go through life, and no way for us to build a high-functioning party,” Petsas said. “That attitude can’t prevail.”

As waves of new precinct officers flooded into the county party, Petsas was dismayed to see some petitioning to recall their own Republican county supervisors for refusing to cooperate with the Senate GOP’s audit.

“It is not helpful to our democracy when you have people who stand up and do the right thing and are honest communicators about what’s going on, and they get lambasted by our own party,” Petsas said. “That’s a problem.”

This spring, a team of disaffected Republican operatives put Schultz’s precinct strategy into action in South Carolina, a state that plays an outsize role in choosing presidents because of its early primaries. The operatives’ goal was to secure enough delegates to the party’s state convention to elect a new chair: far-right celebrity lawyer Lin Wood.

Wood was involved with some of the lawsuits to overturn the presidential election that courts repeatedly ruled meritless, or even sanctionable. After the election, Wood said on Bannon’s podcast, “I think the audience has to do what the people that were our Founding Fathers did in 1776.” On Twitter, Wood called for executing Vice President Mike Pence by firing squad. Wood later said it was “rhetorical hyperbole,” but that and other incendiary language got him banned from mainstream social media. He switched to Telegram, an encrypted messaging app favored by deplatformed right-wing influencers, amassing roughly 830,000 followers while repeatedly promoting the QAnon conspiracy theory.

Asked for comment about his political efforts, Wood responded, “Most of your ‘facts’ are either false or misrepresent the truth.” He declined to cite specifics.

Typically, precinct meetings were “a yawner,” according to Mike Connett, a longtime party member in Horry County, best known for its popular beach towns. But in April, Connett and other establishment Republicans were caught off guard when 369 people, many of them newcomers, showed up for the county convention in North Myrtle Beach. Connett lost a race for a leadership role to Diaz, the prominent QAnon supporter, and Wood’s faction captured the county’s other executive positions plus 35 of 48 delegate slots, enabling them to cast most of the county’s votes for Wood at the state convention. “It seemed like a pretty clean takeover,” Connett told ProPublica.

In Greenville, the state’s most populous county, Wood campaign organizers Jeff Davis and Pressley Stutts mobilized a surge of supporters at the county convention — about 1,400 delegates, up from roughly 550 in 2019 — and swept almost all of the 79 delegate positions. That gave Wood’s faction the vast majority of the votes in two of South Carolina’s biggest delegations.

Across the state, the precinct strategy was contributing to an unprecedented surge in local party participation, according to data provided by a state GOP spokeswoman. In 2019, 4,296 people participated. This year, 8,524 did.

“It’s a prairie fire down there in Greenville, South Carolina, brought on by the MAGA posse,” Bannon said on his podcast.

Establishment party leaders realized they had to take Wood’s challenge seriously. The incumbent chair, Drew McKissick, had Trump’s endorsement three times over — including twice after Wood entered the race. But Wood fought back by repeatedly implying that McKissick and other prominent state Republicans were corrupt and involved in various conspiracies that seemed related to QAnon. The race became heated enough that after one event, Wood and McKissick exchanged angry words face-to-face.

Wood’s rallies were raucous affairs packed with hundreds of people, energized by right-wing celebrities like Flynn and Lindell. In interviews, many attendees described the events as their first foray into politics, sometimes referencing Schultz and always citing Trump’s stolen election myth. Some said they’d resort to violence if they felt an election was stolen again.

Wood’s campaign wobbled in counties that the precinct strategy had not yet reached. At the state convention in May, Wood won about 30% of the delegates, commanding Horry, Greenville and some surrounding counties, but faltering elsewhere. A triumphant McKissick called Wood’s supporters “a fringe, rogue group” and vowed to turn them into a “leper colony” by building parallel Republican organizations in their territory.

But Wood and his partisans did not act defeated. The chairmanship election, they argued, was as rigged as the 2020 presidential race. Wood threw a lavish party at his roughly 2,000-acre low-country estate, secured by armed guards and surveillance cameras. From a stage fit for a rock concert on the lawn of one of his three mansions, Wood promised the fight would continue.

Diaz and her allies in Horry County voted to censure McKissick. The county’s longtime Republicans tried, but failed, to oust Diaz and her cohort after one of the people involved in drafting Wood tackled a protester at a Flynn speech in Greenville. (This incident, the details of which are disputed, prompted Schultz to encourage precinct strategy activists to arm themselves.) Wood continued promoting the precinct strategy to his Telegram followers, and scores replied that they were signing up.

In late July, Stutts and Davis forced out Greenville County GOP’s few remaining establishment leaders, claiming that they had cheated in the first election. Then Stutts, Davis and an ally won a new election to fill those vacant seats. “They sound like Democrats, right?” Bannon asked Stutts in a podcast interview. Stutts replied, “They taught the Democrats how to cheat, Steve.”

Stutts’ group quickly pushed for an investigation of the 2020 presidential election, planning a rally featuring Davis and Wood at the end of August, and began campaigning against vaccine and school mask mandates. “I prefer dangerous freedom over peaceful slavery,” Stutts had previously posted on Facebook, quoting Thomas Jefferson. Stutts continued posting messages skeptical of vaccine and mask mandates even after he entered the hospital with a severe case of COVID-19. He died on Aug. 19.

The hubbub got so loud inside the Cobb County, Georgia, Republican headquarters that it took several shouts and whistles to get everyone’s attention. It was a full house for Salleigh Grubbs’ first meeting as the county’s party chair. Grubbs ran on a vow to “clean house” in the election system, highlighting her December testimony to state lawmakers in which she raised unsubstantiated fraud allegations. Supporters praised Grubbs’ courage for following a truck she suspected of being used in a plot to shred evidence. She attended Trump’s Jan. 6 rally as a VIP. She won the chairmanship decisively at an April county convention packed with an estimated 50% first-time participants.

In May, Grubbs opened her first meeting by asking everyone munching on bacon and eggs to listen to her recite the Gettysburg Address. “Think of the battle for freedom that Americans have before them today,” Grubbs said. “Those people fought and died so that you could be the precinct chair.” After the reading, first-time precinct officers stood for applause and cheers.

Their work would start right away: putting up signs, making calls and knocking on doors for a special election for the state House. The district had long leaned Republican, but after the GOP’s devastating losses up and down the ballot in 2020, they didn’t know what to expect.

“There’s so many people out there that are scared, they feel like their vote doesn’t count,” Cooper Guyon, a 17-year-old right-wing podcaster from the Atlanta area who speaks to county parties around the state, told the Cobb Republicans in July. The activists, he said, need to “get out in these communities and tell them that we are fighting to make your vote count by passing the Senate bill, the election-reform bills that are saving our elections in Georgia.”

Of the field’s two Republicans, Devan Seabaugh took the strongest stance in favor of Georgia’s new law restricting ways to vote and giving the Republican-controlled Legislature more power over running elections. “The only people who may be inconvenienced by Senate Bill 202 are those intent on committing fraud,” he wrote in response to a local newspaper’s candidate questionnaire.

Seabaugh led the June special election and won a July runoff. Grubbs cheered the win as a turning point. “We are awake. We are preparing,” she wrote on Facebook. “The conservative citizens of Cobb County are ready to defend our ballots and our county.”

Newcomers did not meet such quick success everywhere. In Savannah, a faction crashed the Chatham County convention with their own microphone, inspired by Bannon’s podcast to try to depose the incumbent party leaders who they accused of betraying Trump. Party officers blocked the newcomers’ candidacies, saying they weren’t officially nominated. Shouting erupted, and the meeting adjourned without a vote. Then the party canceled its districtwide convention.

The state party ultimately sided with the incumbent leaders. District chair Carl Smith said the uprising is bound to fail because the insurgents are mistaken in believing that he and other local leaders didn’t fight hard enough for Trump.

“You can’t build a movement on a lie,” Smith said.

In Michigan, activists who identify with a larger movement working against Republicans willing to accept Trump’s loss have captured the party leadership in about a dozen counties. They’re directly challenging state party leaders, who are trying to harness the grassroots energy without indulging demands to keep fighting over the last election.

Some of the takeovers happened before the rise of the precinct strategy. But the activists are now organizing under the banner “Precinct First” and holding regular events, complete with notaries, to sign people up to run for precinct delegate positions.

“We are reclaiming our party,” Debra Ell, one of the organizers, told ProPublica. “We’re building an ‘America First’ army.”

Under normal rules, the wave of new precinct delegates could force the party to nominate far-right candidates for key state offices. That’s because in Michigan, party nominees for attorney general, secretary of state and lieutenant governor are chosen directly by party delegates rather than in public primaries. But the state party recently voted to hold a special convention earlier next year, which should effectively lock in candidates before the new, more radical delegates are seated.

Activist-led county parties including rural Hillsdale and Detroit-area Macomb are also censuring Republican state legislators for issuing a June report on the 2020 election that found no evidence of systemic fraud and no need for a reexamination of the results like the one in Arizona. (The censures have no enforceable impact beyond being a public rebuke of the politicians.) At the same time, county party leaders in Hillsdale and elsewhere are working on a ballot initiative to force an Arizona-style election review.

Establishment Republicans have their own idea for a ballot initiative — one that could tighten rules for voter ID and provisional ballots while sidestepping the Democratic governor’s veto. If the initiative collects hundreds of thousands of valid signatures, it would be put to a vote by the Republican-controlled state Legislature. Under a provision of the state constitution, the state Legislature can adopt the measure and it can’t be vetoed.

State party leaders recently reached out to the activists rallying around the rejection of the presidential election results, including Hillsdale Republican Party Secretary Jon Smith, for help. Smith, Ell and others agreed to join the effort, the two activists said.

“This empowers them,” Jason Roe, the state party executive director whose ouster the activists demanded because he said Trump was responsible for his own loss, told ProPublica. Roe resigned in July, citing unrelated reasons. “It’s important to get them focused on change that can actually impact” future elections, he said, “instead of keeping their feet mired in the conspiracy theories of 2020.”

Jesse Law, who ran the Trump campaign’s Election Day operations in Nevada, sued the Democratic electors, seeking to declare Trump the winner or annul the results. The judge threw out the case, saying Law’s evidence did not meet “any standard of proof,” and the Nevada Supreme Court agreed. When the Electoral College met in December, Law stood outside the state capitol to publicly cast mock votes for Trump.

This year, Law set his sights on taking over the Republican Party in the state’s largest county, Clark, which encompasses Las Vegas. He campaigned on the precinct strategy, promising 1,000 new recruits. His path to winning the county chairmanship — just like Stutts’ team in South Carolina, and Grubbs in Cobb County, Georgia — relied on turning out droves of newcomers to flood the county party and vote for him.

In Law’s case, many of those newcomers came through the Proud Boys, the all-male gang affiliated with more than two dozen people charged in the Capitol riot. The Las Vegas chapter boasted about signing up 500 new party members (not all of them belonging to the Proud Boys) to ensure their takeover of the county party. After briefly advancing their own slate of candidates to lead the Clark GOP, the Proud Boys threw their support to Law. They also helped lead a state party censure of Nevada’s Republican secretary of state, who rejected the Trump campaign’s baseless claims of fraudulent ballots.

Law, who did not respond to repeated requests for comment, has declined to distance himself from the Las Vegas Proud Boys, citing Trump’s “stand back and stand by” remark at the September 2020 presidential debate. “When the president was asked if he would disavow, he said no,” Law told an independent Nevada journalist in July. “If the president is OK with that, I’m going to take the presidential stance.”

The outgoing county chair, David Sajdak, canceled the first planned vote for his successor. He said he was worried the Proud Boys would resort to violence if their newly recruited members, who Sajdak considered illegitimate, weren’t allowed to vote.

Sajdak tried again to hold a leadership vote in July, with a meeting in a Las Vegas high school theater, secured by police. But the crowd inside descended into shouting, while more people tried to storm past the cops guarding the back entrance, leading to scuffles. “Let us in! Let us in!” some chanted. Riling them up was at least one Proud Boy, according to multiple videos of the meeting.

At the microphone, Sajdak was running out of patience. “I’m done covering for you awful people,” he bellowed. Unable to restore order, Sajdak ended the meeting without a vote and resigned a few hours later. He’d had enough.

“They want to create mayhem,” Sajdak said.

Soon after, Law’s faction held their own meeting at a hotel-casino and overwhelmingly voted for Law as county chairman. Nevada Republican Party Chairman Michael McDonald, a longtime ally of Law who helped lead Trump’s futile effort to overturn the Nevada results, recognized Law as the new county chair and promoted a fundraiser to celebrate. The existing county leaders sued, seeking a court order to block Law’s “fraudulent, rogue election.” The judge preliminarily sided with the moderates, but told them to hold off on their own election until a court hearing in September.

To Sajdak, agonizing over 2020 is pointless because “there’s no mechanism for overturning an election.” Asked if Law’s allies are determined to create one, Sajdak said: “It’s a scary thought, isn’t it.”

This article was originally published by ProPublica via Creative Commons and written by Isaac Arnsdorf, Doug Bock Clark, Alexandra Berzon and Anjeanette Damon


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‘Extreme Weather’ Ads Target Democrats Defending Fossil Fuel Subsidies

Above: A Climate Change Concept Image: Adobe Stock

More than two dozen advocacy groups launched “extreme weather ads” in five state newspapers on Monday to pressure right-wing Senate Democrats to stop giving taxpayer money to the oil, gas, and coal companies most responsible for the climate emergency.

“It’s time for Congress to stop taking over $15 billion from hardworking Americans and giving it to billionaire fossil fuel CEOs.”

—Anusha Narayanan, Greenpeace

Full page ads—featuring artwork from Hannah Rothstein’s 50 States of Change Collection, which depicts some of the detrimental effects U.S. residents can expect if lawmakers refuse to swiftly enact robust climate mitigation measures—have been placed in The Arizona RepublicThe Dover PostThe Billings GazetteThe Union Leader, and The Charleston Gazette-Mail, to mark the beginning of a week of action against fossil fuel subsidies.

Those five publications were chosen because they are the home-state newspapers of Democratic Sens. Mark Kelly (Ariz.), Kyrsten Sinema (Ariz.), Chris Coons (Del.), Jon Tester (Mont.), Maggie Hassan (N.H.), and Joe Manchin (W.Va.).

The coalition is targeting the six senators because of their close ties with Big Oil, which were exposed in late June when Greenpeace U.K. and the British Channel 4 Newsteamed up to release secretly recorded videos, wherein ExxonMobil lobbyists admitted that the company deliberately sowed doubt about climate science to protect fossil fuel profits and worked with several GOP lawmakers as well as conservative Democrats to undermine climate legislation.

According to the investigation, Coons, Manchin, Sinema, and Tester, along with Republican Sens. John Barrasso (Wyo.), Shelley Moore Capito (W.Va.), John Cornyn (Texas), Steve Daines (Mont.), and Marco Rubio (Fla.), have taken tens of thousands of dollars from Exxon.

Photo Credit / Hannah Rothstein

The 25 groups behind the ad campaign—including Greenpeace USA, Our Revolution, Public Citizen, the Indigenous Environmental Network, Friends of the Earth, Oxfam, Food & Water Watch, and the Sunrise Movement—noted that the federal government gives more than $15 billion in public funding to fossil fuel corporations every year.

Moreover, the Senate-passed bipartisan infrastructure billincludes up to $25 billion in potential new subsidies for the fossil fuel industry. The key author of the energy-related measures in the Infrastructure Investment and Jobs Act is Manchin, who has made more than $4.5 million from his family’s coal business since joining the Senate in 2010.

The ad campaign comes just weeks after the United Nations-sponsored Intergovernmental Panel on Climate Change released its latest report, which, in the words of Greenpeace USA climate campaign manager Anusha Narayanan, “showed the continued extraction and burning of fossil fuels will kill us all.”

“Everyone saw the video where a Big Oil lobbyist named these six Democratic senators as key to their plan to delay climate action,” Narayanan said Monday in a statement. “Members of Congress like Joe Manchin and Kyrsten Sinema have the fossil fuel industry on speed dial, while they keep the rest of us on hold. That’s a disaster for the future of the planet and its people.”

“It’s time for Congress to stop taking over $15 billion from hardworking Americans and giving it to billionaire fossil fuel CEOs,” she continued. “Despite what these companies say, subsidies don’t actually lead to jobs and most subsidies go to profits.”

Narayanan added that an amended infrastructure bill and the $3.5 trillion budget resolution, which Democratic Party leaders hope to pass through the reconciliation process, present a “once-in-a-lifetime opportunity” for Sens. Kelly, Sinema, Coons, Tester, Hassan, and Manchin “to invest in a just transition to renewable energy, racial and economic justice, and working-class communities.”

Photo Credit / Hannah Rothstein

The new ads also come as the U.S. West is suffering from an increasingly severe drought and 93 active wildfires, while the Northeast is battered by Tropical Storm Henri, and parts of the South, including North Carolina and Tennessee, are grappling with deadly flooding after being pummeled by record-breaking rainfall.

That lawmakers continue to collaborate with oil, gas, and coal companies despite dire warnings from scientists and glaring real-time evidence that fossil fuel emissions are exacerbating extreme weather events prompted Rothstein to ask: “What is wrong with our politicians?”

“Why do they continue to support Big Oil and coal when it’s clear these industries are causing natural disasters that harm everyday Americans?” Rothstein asked Monday in a statement. “California’s increasingly rampant wildfires, Texas’ unprecedented February 2021 snowstorm, and the current water shortages in Arizona, Montana, and New Mexico are only a few examples of the unshakably clear evidence that we need urgent climate action ASAP.”

“We can lessen, reverse, and prevent many of the issues depicted in 50 States of Change, but we need to act now, starting with an immediate and expedited shift away from burning fossil fuels,” she added. “This can’t be done solely on a consumer level. We need our elected officials on our side.”

In addition to being featured in the ad campaign, Rothstein’s artwork is also being used in an interactive story map, which will “underscore a state-by-state breakdown of current and future state-level impacts of the fossil fuel-driven climate crisis.” It is set to be published on Greenpeace USA’s website on Wednesday.

By KENNY STANCIL originally published on Common Dreams via Creative Commons

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Article from 1912 linked Coal to Climate Change

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We were given a warning about fossil fuels. Now we’re living it…

An image from an old newspaper was shared on social media from the account “Historical Photos” and titled “Coal Consumption Affecting Climate”.

The image of the clipping went viral very likely because of the amazing date it was published on, August 14th, 1912. The image has since been seen by over 17k people on Twitter and over 6k on Facebook.

Understandably there were many people that questioned whether the article was actually authentic or merely fabricated. The implication is a big one, that scientists have known for over a century the negative impacts coal consumption has on the climate (and haven’t done much to change it).

https://twitter.com/Iearnhistory/status/1425673866609762306?s=20

As per USA Today, the article is, in fact, real and has been authenticated by Snopes. The text originated from a March 1912 report in the Popular Mechanics magazine titled “Remarkable Weather of 1911: The Effect of the Combustion of Coal on the Climate – What Scientists Predict for the Future.” Similar phrasing was used in the New Zealand newspaper published on August 14, 1912 which is from the viral image.

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Facebook Resorted to Illegal Buy-or-Bury Scheme: FTC

photo collage by Lynxotic

Chair of the Federal Trade Commission Lina Khan posted on her Twitter the official press release of its position against Facebook.

Pulling no punches the language of the filing leaves no doubt as to the direction of the FTC going forward in this case. Illegal, Bribery, “Buy-or-Bury Scheme” these are characterizations that go to the heart of anticompetitive and monopolistic behavior of the giant. FTC Bureau of Competition Acting Director, Holly Vedova, said ““This conduct is no less anticompetitive than if Facebook had bribed emerging app competitors not to compete. The antitrust laws were enacted to prevent precisely this type of illegal activity by monopolists.”

While The Federal Trade Commission’s mandate has traditionally been “to promote competition and protect and educate consumers” the attempt by big tech to appear “helpful” to consumers with hidden costs and deflated pricing is finally at issue with Kahn in the chair. Khan’s famous 2017 article; “Amazon’s Antitrust Paradox“ helped to re-define a new direction for antitrust law for the digital age, which appears to be in the early stages of fulfillment at the agency under her leadership.

As described in the amended case, upon Facebook starting out as an open space for third party developers, the company quickly reversed (pulling a bait-and-switch) by requiring developers to terms that would have prevented successful applications from emerging as competitive threats to the company.

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‘A Big Win’: USPS Must Turn Over Docs About DeJoy’s Potential Conflicts of Interest

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“The stench of corruption wafting up from Louis DeJoy’s office is so thick seagulls are flying in from the Jersey Shore and circling overhead.”

A leading government ethics watchdog on Wednesday cheered a federal judge’s ruling ordering the United States Postal Service to hand over documents concerning potential conflicts of interest involving embattled Postmaster General Louis DeJoy.

U.S. District Judge John D. Bates on Tuesday granted Citizens for Responsibility and Ethics in Washington (CREW) a full summary judgment (pdf) and orderedthe United States Postal Service (USPS) to give the advocacy group seven documents it requested under the Freedom of Information Act (FOIA).

USPS claimed the documents were FOIA-exempt. According to Law & Crime, “Four of the documents concerned a request for a certificate of divestiture from DeJoy and the remaining three concern his recusal from matters where he may have a conflict of interest.”

As CREW explained Wednesday:

Over the past seven years, the USPS has reportedly paid approximately $286 million to XPO Logistics, DeJoy’s ex-employer, and has “ramped up its business” with the company since DeJoy’s appointment as postmaster general. After his appointment, DeJoy continued to hold financial interests in XPO totaling between $30 and $75 million. DeJoy also held a significant amount of stock in Amazon, a major USPS competitor.

Earlier this month, Common Dreams reported on growing calls to fire DeJoy following the revelation by The Washington Post that USPS will pay XPO Logistics $120 million over the next five years. Rep. Gerry Connolly (D-Va.) responded to the Post report by calling DeJoy a “walking conflict of interest.”

Last Friday, a Post report that DeJoy had purchased hundreds of thousands of dollars worth of publicly traded bonds from Brookfield Asset Management—where USPS Board of Governors Chair Ron Bloom is a managing partner—fueled further calls for DeJoy’s termination, with Connolly calling Bloom and the postmaster general “bandits” whose “conflicts of interest do nothing but harm the Postal Service and the American people.”

CREW communications director Jordan Libowitz called Bates’ order “a big win not just for CREW, but for transparency advocates everywhere.”

“DeJoy’s decision-making as postmaster general has raised some serious ethical questions—now we should finally get some answers,” Libowitz added.

Rep. Bill Pascrell (D-N.J.) on Monday sent President Joe Biden a letter urging him to sack everyone former President Donald Trump appointed to the USPS board. Pascrell welcomed the Tuesday court order and reiterated his call for Biden to fire Trump appointees and “show DeJoy the door now before it’s too late.”

DeJoy and six of the nine USPS governors, including Bloom, were appointed by Trump; the rest are Biden appointees.

In addition to the alleged conflicts of interest in connection with XPO Logistics and Brookfield Asset Management, CREW, in advocating DeJoy’s ouster, notes that:

  • DeJoy and his wife, a former U.S. ambassador to Canada, got their jobs after contributing $2 million to Trump’s campaign coffers;
  • DeJoy is the first person in decades to lead the USPS without any previous experience in the agency;
  • DeJoy is under federal investigation for allegedly operating a scheme where he asked employees of his former company to make campaign contributions, then arranged for bonus payments to reimburse the employees; and
  • DeJoy apparently violated federal criminal laws by commanding the USPS to make policy changes at the agency that would depress or delay voting by mail in the 2020 election.

“Bottom line: Louis DeJoy has overseen an attack on the Postal Service and on American democracy itself,” CREW tweeted Wednesday. “The USPS Board of Governors must fire him before it’s too late.”

By BRETT WILKINS originally published on Common Dreams via Creative Commons.

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‘Hard to Imagine Worse Idea’: Biden to Resume Fossil Fuel Leases on Public Lands and Waters

Photo by Chris LeBoutillier on Unsplash

“The president made a promise to ban all new oil and gas leasing on public lands and waters,” said Greenpeace, “and the American people expect him to keep it.”

Climate groups are expressing deep concern following an Interior Department announcement Monday that the Biden administration will resume oil and gas drilling leases on public lands and waters—a practice President Joe Biden vowed to ban during his 2020 run for the White House—in response to a federal court ruling.

“The climate emergency reality we are facing demands immediate action, not acquiescence.”

—Nicole Ghio, Friends of the Earth

While the Biden administration confirmed in its announcement that an appeal has been filed with the 5th Circuit Court of Appeals in a legal battle with the state of Louisiana—which sued the federal government over the pause in the oil and gas leasing program ordered by Biden earlier this year—the Interior Department said leasing would resume while the process plays out.

“Federal onshore and offshore oil and gas leasing will continue as required by the district court while the government’s appeal is pending,” the DOI stated.

According to Bloomberg, the moves by the administration “mark the beginning of an open-ended analysis of the federal oil, gas and coal leasing programs that could span years—and lead to higher fees as well as new limits on development in sensitive areas.”

While environmental advocacy groups commended the administration for appealing the lower court ruling—handed down by a Trump-appointed U.S. district court judge in June—they also said the threat of resuming the leasing program on federal lands and for offshore drilling cannot be overstated.

“Our planet can’t afford any more new fossil fuel extraction,” said Taylor McKinnon, a senior campaigner with the Center for Biological Diversity, in a statement on Tuesday. “We’re out of time. The world’s existing oil and gas fields will already push warming past 1.5 degrees Celsius if they’re fully developed.”

Robert Weissman, president of Public Citizen, said in respsonse that with “the climate crisis smacking us in the face at every turn, it’s hard to imagine a worse idea than resuming oil and gas drilling on federal lands. As has been documented in long and excruciating detail, oil and gas drillers have trashed public lands and failed to clean up their mess—while siphoning public resources for a relative pittance.”

As the appeals process plays out, the Biden administration said it will perform a new analysis of the regulatory framework that governs leasing and extraction operations on federal lands as well as hold oil and gas companies to account under existing authorities and guidelines.

“We’re out of time. The world’s existing oil and gas fields will already push warming past 1.5 degrees Celsius if they’re fully developed.”

—Taylor McKinnon, Center for Biological Diversity

“It’s encouraging that the Biden administration is appealing this wrongful decision,” said Nicole Ghio, senior fossil fuels program manager at Friends of the Earth. “However, the president made a promise to ban all new oil and gas leasing on public lands and waters, and the American people expect him to keep it. The climate emergency reality we are facing demands immediate action, not acquiescence.”

Mary Greene, public lands attorney for the National Wildlife Federation, urged the Interior Department to act aggressively but also said that Congress must get off the sidelines on the issue.

“While the Biden administration responds to the court, we urge the Department of Interior to issue its reform initiatives so that the outdated leasing system is modernized for the benefit of our public lands, wildlife, and all Americans,” Greene said. “But administrative actions alone cannot solve this problem. Congress must also swiftly take action to update our hundred-year-old leasing law so that our nation can transition to the clean energy economy that we all need and deserve.”

Given the recent IPCC report which argues that global emissions must be urgently reduced, climate action advocates said the administration cannot be allowed to walk away from its commitment to end oil and gas development on federal lands.

“Last week’s IPCC report outlined the grisly risks that fossil fuels pose to people and the planet,” said Tim Donaghy, senior research specialist with Greenpeace USA. “The International Energy Agency (IEA) has clearly said there can be no new fossil fuel projects if we are to stand any chance at limiting the climate chaos.”

A complete and final end of drilling on U.S. public lands and in offshore waters, said Donaghy, “is an essential part of any effective climate plan.” Along with others in the climate just movement, he said there remain many avenues for Biden “to consider in reforming leasing and we urge him to do everything he can to keep fossil fuels in the ground.”

By JON QUEALLY originally published on Common Dreams via Creative Commons

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Inspector General Urges Ethics Review at Federal Election Commission Following ProPublica Report

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The FEC’s inspector general has called for the agency to review its policies and internal controls after ProPublica revealed a key employee’s undisclosed ties to Trump.

The inspector general for the Federal Election Commission is calling on the agency to review its ethics policies and internal controls after a ProPublica investigation last year revealed that a senior manager openly supported Donald Trump and maintained a close relationship with a Republican attorney who went on to serve as the 2016 Trump campaign’s top lawyer.

The report by ProPublica raised questions about the impartiality of the FEC official, Debbie Chacona, a civil servant who oversees the unit responsible for keeping unlawful contributions out of U.S. political campaigns. The division’s staffers are supposed to adhere to a strict ethics code and forgo any public partisan activities because such actions could imply preferential treatment for a candidate or party and jeopardize the commission’s credibility.

In its findings, the inspector general said Chacona, head of the FEC’s Reports Analysis Division, or RAD, did not improperly intervene in a review of the Trump inaugural committee’s fundraising and acted “consistent with relevant law and policy” by allowing career analysts to handle the filings.

But the inspector general said “it is important to address the ethical principle that federal employees should avoid even the appearance of impropriety.” It added that the FEC’s “unique mission raises heightened concerns when allegations of personal or political bias are raised against FEC senior personnel that could undermine the public’s confidence in the agency” and recommended the commission “evaluate the current agency policies on ethical behavior and update them, as may be appropriate.”

Chacona displayed her support for Trump in Facebook posts, including one in which she posed with her family around a “Make America Great Again” sign at Trump’s January 2017 inaugural. Separately, emails obtained by ProPublica showed that she also consulted regularly on matters personal and professional with the Republican lawyer, Donald McGahn, when he was an FEC commissioner from 2008 to September 2013.

After Trump’s election, the fundraising practices of his inaugural committee prompted complaints that the FEC failed to properly examine contributions. As head of RAD, Chacona signed off on amended filings by the committee intended to address some of those complaints even though the revised reports continued to list problematic donations, including ones from donors whose addresses didn’t exist in public records.

The 300-employee FEC is an independent regulatory agency that was created by Congress to enforce campaign finance law. It is headed by six presidentially appointed commissioners, four of whom must vote together for the agency to take any official action, a requirement that was meant to bolster nonpartisan compromise but has resulted in chronic gridlock.

The inspector general also took issue with the way the FEC regulates presidential inaugural committees, which are nonprofit entities separate from campaign committees. Trump’s inaugural committee raised a record-breaking $107 million from more than 1,000 contributors. Its initial disclosure report was 510 pages.

The inspector general found that unlike with campaign committees, FEC policy confers “broad, subjective discretion to the RAD senior manager to determine what potential violations of law warrant further inquiry” when it comes to inaugural committees. It called such a standard “ill-defined and subjective,” cautioning that it could create “a reasonable likelihood of inconsistent results and arbitrary or capricious application (in fact or appearance).”

The inspector general also said that unlike political committees, which file their reports to the FEC electronically, inaugural committee disclosure reports are filed on paper to the commission and then manually reviewed by agency staffers — a system the inspector general said was “antiquated and lacks adequate internal controls.”

Asked what the agency has done to address the appearance of a conflict of interest at RAD and whether the agency planned on adopting any of the inspector general recommendations, an FEC spokesperson declined to comment.

McGahn, who was appointed White House counsel after serving as the Trump campaign’s top lawyer, now heads the government regulations group at the law firm Jones Day. He did not respond to messages seeking comment; in a response for the earlier ProPublica story, he said he doesn’t comment on “nonsense.” Chacona did not respond to a message seeking comment. A spokesperson for Trump’s inaugural committee didn’t return a message seeking comment.

The inspector general said that it interviewed FEC lawyers and RAD staffers, and that it obtained and reviewed agency records to conduct its inquiry. Commissioners were notified of the investigators’ findings at the end of July.

With its unprecedented haul and its questionable outlays, Trump’s inaugural committee drew swift attention from journalists and regulators. The Washington, D.C., attorney general has sued the committee, accusing it of enriching the Trump family business by spending lavishly at Trump-owned properties, claims the committee has denied in court papers. Separately, federal prosecutors subpoenaed the committee’s donor records as part of an inquiry into illegal contributions made by foreign nationals.

Both inaugural and political committees are prohibited from accepting contributions from foreign nationals. But Trump’s inaugural committee included in its disclosure reports donations from contributors outside the U.S., and RAD relied on the word of the committee that the donors were indeed U.S. citizens, the inspector general report found. Investigators took issue with that practice. They noted that RAD’s policy of accepting a committee’s “self-certification” wasn’t memorialized in any policy, and they recommended that the division set a threshold when such a contribution would trigger further inquiry to independently verify the source of the money.

Fred Wertheimer, whose advocacy group Democracy 21 helped file a 2017 FEC complaint against Trump’s inaugural committee, which the agency’s general counsel later dismissed, said the head of RAD should have recused herself from overseeing the committee’s filings.

“In my view Ms. Chacona had a clear appearance of conflict and never should’ve gone anywhere near the inaugural committee’s report,” said Wertheimer, who was derided by Chacona and McGahn in the email exchanges obtained by ProPublica.

by Jake Pearson for ProPublica, via Creative Commons [Creative Commons License (CC BY-NC-ND 3.0)]. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

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How The Daily Wire Uses Facebook’s Targeted Advertising to Build Its Brand

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The social media giant’s powerful targeting tools appear to be part of Ben Shapiro’s success in growing his audience on the platform

Ben Shapiro, co-founder of The Daily Wire, a conservative media company, has mastered Facebook’s complex algorithms like no one else, posting links to stories from his publication that rank among the top 10 best performing posts on Facebook day after day after day.

What’s the key to his success? 

As a recent NPR analysis shows, The Daily Wire’s sensationalist headlines garner a ton of engagement on a platform that rewards explosive content. But The Daily Wire is also a sophisticated user of Facebook’s advertising targeting tools to pinpoint users likely to be receptive to its outrage-driven brand of conservative content, The Markup has found.

Using data from our Citizen Browser project, we pulled targeting information from 241 Daily Wire ads that ran on Facebook between April 15 and July 15, 2021. We found that The Daily Wire largely chose to target people whom Facebook had pegged as interested in Fox News, Donald Trump, Rush Limbaugh, and other conservative mainstays, as well as individuals Facebook determined were characteristically or demographically similar to The Daily Wire’s existing audience members. (See our data here.)

Citizen Browser consists of a panel of roughly 1,800 Facebook users across the country who voluntarily share their Facebook news feed data with The Markup—providing a rare, albeit relatively small, window into what different people see on the platform. 

By contrast, The New York Times—one of the largest legacy media publications in the U.S.—took a different tack in its Facebook advertising, targeting users according to the topics of the articles. So, for instance, an article about a band could be targeted to Facebook users with “music” listed in their ad interests. (Facebook says it determines users’ interests based on their past activities on the platform but has been somewhat cagey about how exactly this is done.)

Of the two publications, The Daily Wire used interest targeting more frequently than The New York Times did: 39.3 percent of Daily Wire ads versus 23.5 percent of ads from the Times were targeted in this way.  

The table below shows the top 10 interests targeted in sponsored posts from both outlets:

While the Times mostly targets topical interests, of the top 20 interests targeted by The Daily Wire, only one (“American Football”) was not directly tied to conservative media or politics. 

The Daily Wire also frequently made use of Facebook’s “lookalike audiences” feature to show content to new audiences of users who do not follow the page but share characteristics with those who do. In our dataset, 37.9 percent of Daily Wire posts used this type of targeting. The New York Times also used this targeting type, albeit rarely: Only 3.6 percent of its sponsored posts in our dataset targeted lookalike audiences.

“As you’re looking at this dataset, to me it shows that mainstream media outlets like The New York Times are still approaching the internet as a collective space in which you could potentially learn about anything, from ‘research’ or ‘science’ to ‘family and relationships,’ ” Francesca Tripodi, an assistant professor at UNC School of Information and Library Science at Chapel Hill, said. “But Daily Wire, if you’re saying, ‘We only want to target people who are interested in conservatism in America,’ that creates this bifurcated or dual internet, and that allows for information to circulate unchecked.”

Facebook advertising is designed to use personal data points about its users to guess what sorts of products they might like, she said, but there’s a fundamental difference between a food brand serving ads to people who like potato chips and a news brand serving information to people who like conservatism.

“[Daily Wire] is using the same tactics that these corporate entities are using but to create siloed interests around information,” Tripodi said. 

Neither The Daily Wire nor Facebook responded to multiple requests for comment. 

Beyond Facebook’s powerful data-gathering system, The Daily Wire amasses its own information on readers and potential readers. 

The Markup also scanned Daily Wire ads in the Facebook ad library, which contains a broader range of ads than those seen by Citizen Browser panelists but does not disclose targeting information. Over a three-month period, from May through July, the ad library displayed 47 unique ads from The Daily Wire. Of these, 22 were survey-style ads prompting users to respond to emotive political questions. 

Clicking the ad takes users away from Facebook and onto the dailywire.com domain, where they are asked to enter an email address in order to respond.

Over the same time period, no New York Times ads available in the ad library used this technique.

The Daily Wire’s website also contains an unusually high number of data-gathering trackers. 

A scan from Blacklight, a website privacy inspector built by The Markup, on Aug. 4, 2021, turned up 41 ad trackers and 117 third-party cookies on the homepage. By contrast, The Markup’s scan of 100,000 of the most popular websites in September 2020 found an average of seven ad trackers and only three third-party cookies per site.

The site also uses Facebook’s bespoke Pixel tracking code to send data back to the social platform about users who have visited the site, which The Daily Wire can use to further tweak ad targeting and build new lookalike audiences.

“What you’ve shown here is clear evidence of the way in which the radicalization of our society is built on many facets of the algorithm, including the tools provided for ad targeting,” said Cameron Hickey, project director for algorithmic transparency at the National Conference on Citizenship.

Questions about the ethics of using data-driven profiling to target political messages are not new. Perhaps most famously, the British political consulting firm Cambridge Analytica purported to create detailed psychological profiles of Facebook users and shared those with the campaign of former president Donald Trump. While profiling has been a part of politics for decades to some extent, figures ranging from former Facebook insiders to Federal Election Commission officials have raised alarms over the kind of microtargeting that social media allows. (The European Commission is also considering including a ban on microtargeting in its landmark Digital Services Act package, which is making its way through the European Parliament and the Council of the European Union.) 

That said, The Daily Wire’s targeting choices are widely accepted as routine, its success on Facebook more of a feature of the platform’s workings than a bug in the system, said Katie Joseff, a research fellow at the Center for Media Engagement at the University of Texas at Austin.

“These platforms, when you look at Facebook and YouTube in particular, they want people on there who are engaging their users because then there’s more users and user time overall,” Joseff said. “So [The Daily Wire] is definitely playing into the structure as it was created and doing it well.”

By Corin Faife – This article was originally published on The Markup and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.


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The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

by Jesse Eisinger, Jeff Ernsthausen and Paul Kiel

Series:
The Secret IRS Files
Inside the Tax Records of the .001%

This story was originally published by ProPublica.

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

In 2007, Jeff Bezos, then a multibillionaire and now the world’s richest man, did not pay a penny in federal income taxes. He achieved the feat again in 2011. In 2018, Tesla founder Elon Musk, the second-richest person in the world, also paid no federal income taxes.

Michael Bloomberg managed to do the same in recent years. Billionaire investor Carl Icahn did it twice. George Soros paid no federal income tax three years in a row.

ProPublica has obtained a vast trove of Internal Revenue Service data on the tax returns of thousands of the nation’s wealthiest people, covering more than 15 years. The data provides an unprecedented look inside the financial lives of America’s titans, including Warren Buffett, Bill Gates, Rupert Murdoch and Mark Zuckerberg. It shows not just their income and taxes, but also their investments, stock trades, gambling winnings and even the results of audits.

Taken together, it demolishes the cornerstone myth of the American tax system: that everyone pays their fair share and the richest Americans pay the most. The IRS records show that the wealthiest can — perfectly legally — pay income taxes that are only a tiny fraction of the hundreds of millions, if not billions, their fortunes grow each year.

Many Americans live paycheck to paycheck, amassing little wealth and paying the federal government a percentage of their income that rises if they earn more. In recent years, the median American household earned about $70,000 annually and paid 14% in federal taxes. The highest income tax rate, 37%, kicked in this year, for couples, on earnings above $628,300.

The confidential tax records obtained by ProPublica show that the ultrarich effectively sidestep this system.

America’s billionaires avail themselves of tax-avoidance strategies beyond the reach of ordinary people. Their wealth derives from the skyrocketing value of their assets, like stock and property. Those gains are not defined by U.S. laws as taxable income unless and until the billionaires sell.

To capture the financial reality of the richest Americans, ProPublica undertook an analysis that has never been done before. We compared how much in taxes the 25 richest Americans paid each year to how much Forbes estimated their wealth grew in that same time period.

We’re going to call this their true tax rate.

The results are stark. According to Forbes, those 25 people saw their worth rise a collective $401 billion from 2014 to 2018. They paid a total of $13.6 billion in federal income taxes in those five years, the IRS data shows. That’s a staggering sum, but it amounts to a true tax rate of only 3.4%.

It’s a completely different picture for middle-class Americans, for example, wage earners in their early 40s who have amassed a typical amount of wealth for people their age. From 2014 to 2018, such households saw their net worth expand by about $65,000 after taxes on average, mostly due to the rise in value of their homes. But because the vast bulk of their earnings were salaries, their tax bills were almost as much, nearly $62,000, over that five-year period.

No one among the 25 wealthiest avoided as much tax as Buffett, the grandfatherly centibillionaire. That’s perhaps surprising, given his public stance as an advocate of higher taxes for the rich. According to Forbes, his riches rose $24.3 billion between 2014 and 2018. Over those years, the data shows, Buffett reported paying $23.7 million in taxes.

That works out to a true tax rate of 0.1%, or less than 10 cents for every $100 he added to his wealth.

In the coming months, ProPublica will use the IRS data we have obtained to explore in detail how the ultrawealthy avoid taxes, exploit loopholes and escape scrutiny from federal auditors.

Experts have long understood the broad outlines of how little the wealthy are taxed in the United States, and many lay people have long suspected the same thing.

But few specifics about individuals ever emerge in public. Tax information is among the most zealously guarded secrets in the federal government. ProPublica has decided to reveal individual tax information of some of the wealthiest Americans because it is only by seeing specifics that the public can understand the realities of the country’s tax system.

Consider Bezos’ 2007, one of the years he paid zero in federal income taxes. Amazon’s stock more than doubled. Bezos’ fortune leapt $3.8 billion, according to Forbes, whose wealth estimates are widely cited. How did a person enjoying that sort of wealth explosion end up paying no income tax?

In that year, Bezos, who filed his taxes jointly with his then-wife, MacKenzie Scott, reported a paltry (for him) $46 million in income, largely from interest and dividend payments on outside investments. He was able to offset every penny he earned with losses from side investments and various deductions, like interest expenses on debts and the vague catchall category of “other expenses.”

In 2011, a year in which his wealth held roughly steady at $18 billion, Bezos filed a tax return reporting he lost money — his income that year was more than offset by investment losses. What’s more, because, according to the tax law, he made so little, he even claimed and received a $4,000 tax credit for his children.

His tax avoidance is even more striking if you examine 2006 to 2018, a period for which ProPublica has complete data. Bezos’ wealth increased by $127 billion, according to Forbes, but he reported a total of $6.5 billion in income. The $1.4 billion he paid in personal federal taxes is a massive number — yet it amounts to a 1.1% true tax rate on the rise in his fortune.

The revelations provided by the IRS data come at a crucial moment. Wealth inequality has become one of the defining issues of our age. The president and Congress are considering the most ambitious tax increases in decades on those with high incomes. But the American tax conversation has been dominated by debate over incremental changes, such as whether the top tax rate should be 39.6% rather than 37%.

ProPublica’s data shows that while some wealthy Americans, such as hedge fund managers, would pay more taxes under the current Biden administration proposals, the vast majority of the top 25 would see little change.

The tax data was provided to ProPublica after we published a series of articles scrutinizing the IRS. The articles exposed how years of budget cuts have hobbled the agency’s ability to enforce the law and how the largest corporations and the rich have benefited from the IRS’ weakness. They also showed how people in poor regions are now more likely to be audited than those in affluent areas.

ProPublica is not disclosing how it obtained the data, which was given to us in raw form, with no conditions or conclusions. ProPublica reporters spent months processing and analyzing the material to transform it into a usable database.

We then verified the information by comparing elements of it with dozens of already public tax details (in court documents, politicians’ financial disclosures and news stories) as well as by vetting it with individuals whose tax information is contained in the trove. Every person whose tax information is described in this story was asked to comment. Those who responded, including Buffett, Bloomberg and Icahn, all said they had paid the taxes they owed.

A spokesman for Soros said in a statement: “Between 2016 and 2018 George Soros lost money on his investments, therefore he did not owe federal income taxes in those years. Mr. Soros has long supported higher taxes for wealthy Americans.” Personal and corporate representatives of Bezos declined to receive detailed questions about the matter. ProPublica attempted to reach Scott through her divorce attorney, a personal representative and family members; she did not respond. Musk responded to an initial query with a lone punctuation mark: “?” After we sent detailed questions to him, he did not reply.

One of the billionaires mentioned in this article objected, arguing that publishing personal tax information is a violation of privacy. We have concluded that the public interest in knowing this information at this pivotal moment outweighs that legitimate concern.

The consequences of allowing the most prosperous to game the tax system have been profound. Federal budgets, apart from military spending, have been constrained for decades. Roads and bridges have crumbled, social services have withered and the solvency of Social Security and Medicare is perpetually in question.

There is an even more fundamental issue than which programs get funded or not: Taxes are a kind of collective sacrifice. No one loves giving their hard-earned money to the government. But the system works only as long as it’s perceived to be fair.

Our analysis of tax data for the 25 richest Americans quantifies just how unfair the system has become.

By the end of 2018, the 25 were worth $1.1 trillion.

For comparison, it would take 14.3 million ordinary American wage earners put together to equal that same amount of wealth.

The personal federal tax bill for the top 25 in 2018: $1.9 billion.

The bill for the wage earners: $143 billion.

The idea of a regular tax on income, much less on wealth, does not appear in the country’s founding documents. In fact, Article 1 of the U.S. Constitution explicitly prohibits “direct” taxes on citizens under most circumstances. This meant that for decades, the U.S. government mainly funded itself through “indirect” taxes: tariffs and levies on consumer goods like tobacco and alcohol.

With the costs of the Civil War looming, Congress imposed a national income tax in 1861. The wealthy helped force its repeal soon after the war ended. (Their pique could only have been exacerbated by the fact that the law required public disclosure. The annual income of the moguls of the day — $1.3 million for William Astor; $576,000 for Cornelius Vanderbilt — was listed in the pages of The New York Times in 1865.)

By the late 19th and early 20th century, wealth inequality was acute and the political climate was changing. The federal government began expanding, creating agencies to protect food, workers and more. It needed funding, but tariffs were pinching regular Americans more than the rich. The Supreme Court had rejected an 1894 law that would have created an income tax. So Congress moved to amend the Constitution. The 16th Amendment was ratified in 1913 and gave the government power “to lay and collect taxes on incomes, from whatever source derived.”

In the early years, the personal income tax worked as Congress intended, falling squarely on the richest. In 1918, only 15% of American families owed any tax. The top 1% paid 80% of the revenue raised, according to historian W. Elliot Brownlee.

But a question remained: What would count as income and what wouldn’t? In 1916, a woman named Myrtle Macomber received a dividend for her Standard Oil of California shares. She owed taxes, thanks to the new law. The dividend had not come in cash, however. It came in the form of an additional share for every two shares she already held. She paid the taxes and then brought a court challenge: Yes, she’d gotten a bit richer, but she hadn’t received any money. Therefore, she argued, she’d received no “income.”

Four years later, the Supreme Court agreed. In Eisner v. Macomber, the high court ruled that income derived only from proceeds. A person needed to sell an asset — stock, bond or building — and reap some money before it could be taxed.

Since then, the concept that income comes only from proceeds — when gains are “realized” — has been the bedrock of the U.S. tax system. Wages are taxed. Cash dividends are taxed. Gains from selling assets are taxed. But if a taxpayer hasn’t sold anything, there is no income and therefore no tax.

Contemporary critics of Macomber were plentiful and prescient. Cordell Hull, the congressman known as the “father” of the income tax, assailed the decision, according to scholar Marjorie Kornhauser. Hull predicted that tax avoidance would become common. The ruling opened a gaping loophole, Hull warned, allowing industrialists to build a company and borrow against the stock to pay living expenses. Anyone could “live upon the value” of their company stock “without selling it, and of course, without ever paying” tax, he said.

Hull’s prediction would reach full flower only decades later, spurred by a series of epochal economic, legal and cultural changes that began to gather momentum in the 1970s. Antitrust enforcers increasingly accepted mergers and stopped trying to break up huge corporations. For their part, companies came to obsess over the value of their stock to the exclusion of nearly everything else. That helped give rise in the last 40 years to a series of corporate monoliths — beginning with Microsoft and Oracle in the 1980s and 1990s and continuing to Amazon, Google, Facebook and Apple today — that often have concentrated ownership, high profit margins and rich share prices. The winner-take-all economy has created modern fortunes that by some measures eclipse those of John D. Rockefeller, J.P. Morgan and Andrew Carnegie.

In the here and now, the ultrawealthy use an array of techniques that aren’t available to those of lesser means to get around the tax system.

Certainly, there are illegal tax evaders among them, but it turns out billionaires don’t have to evade taxes exotically and illicitly — they can avoid them routinely and legally.

Most Americans have to work to live. When they do, they get paid — and they get taxed. The federal government considers almost every dollar workers earn to be “income,” and employers take taxes directly out of their paychecks.

The Bezoses of the world have no need to be paid a salary. Bezos’ Amazon wages have long been set at the middle-class level of around $80,000 a year.

For years, there’s been something of a competition among elite founder-CEOs to go even lower. Steve Jobs took $1 in salary when he returned to Apple in the 1990s. Facebook’s Zuckerberg, Oracle’s Larry Ellison and Google’s Larry Page have all done the same.

Yet this is not the self-effacing gesture it appears to be: Wages are taxed at a high rate. The top 25 wealthiest Americans reported $158 million in wages in 2018, according to the IRS data. That’s a mere 1.1% of what they listed on their tax forms as their total reported income. The rest mostly came from dividends and the sale of stock, bonds or other investments, which are taxed at lower rates than wages.

As Congressman Hull envisioned long ago, the ultrawealthy typically hold fast to shares in the companies they’ve founded. Many titans of the 21st century sit on mountains of what are known as unrealized gains, the total size of which fluctuates each day as stock prices rise and fall. Of the $4.25 trillion in wealth held by U.S. billionaires, some $2.7 trillion is unrealized, according to Emmanuel Saez and Gabriel Zucman, economists at the University of California, Berkeley.

Buffett has famously held onto his stock in the company he founded, Berkshire Hathaway, the conglomerate that owns Geico, Duracell and significant stakes in American Express and Coca-Cola. That has allowed Buffett to largely avoid transforming his wealth into income. From 2015 through 2018, he reported annual income ranging from $11.6 million to $25 million. That may seem like a lot, but Buffett ranks as roughly the world’s sixth-richest person — he’s worth $110 billion as of Forbes’ estimate in May 2021. At least 14,000 U.S. taxpayers in 2015 reported higher income than him, according to IRS data.

There’s also a second strategy Buffett relies on that minimizes income, and therefore, taxes. Berkshire does not pay a dividend, the sum (a piece of the profits, in theory) that many companies pay each quarter to those who own their stock. Buffett has always argued that it is better to use that money to find investments for Berkshire that will further boost the value of shares held by him and other investors. If Berkshire had offered anywhere close to the average dividend in recent years, Buffett would have received over $1 billion in dividend income and owed hundreds of millions in taxes each year.

Many Silicon Valley and infotech companies have emulated Buffett’s model, eschewing stock dividends, at least for a time. In the 1980s and 1990s, companies like Microsoft and Oracle offered shareholders rocketing growth and profits but did not pay dividends. Google, Facebook, Amazon and Tesla do not pay dividends.

In a detailed written response, Buffett defended his practices but did not directly address ProPublica’s true tax rate calculation. “I continue to believe that the tax code should be changed substantially,” he wrote, adding that he thought “huge dynastic wealth is not desirable for our society.”

The decision not to have Berkshire pay dividends has been supported by the vast majority of his shareholders. “I can’t think of any large public company with shareholders so united in their reinvestment beliefs,” he wrote. And he pointed out that Berkshire Hathaway pays significant corporate taxes, accounting for 1.5% of total U.S. corporate taxes in 2019 and 2020.

Buffett reiterated that he has begun giving his enormous fortune away and ultimately plans to donate 99.5% of it to charity. “I believe the money will be of more use to society if disbursed philanthropically than if it is used to slightly reduce an ever-increasing U.S. debt,” he wrote.

So how do megabillionaires pay their megabills while opting for $1 salaries and hanging onto their stock? According to public documents and experts, the answer for some is borrowing money — lots of it.

For regular people, borrowing money is often something done out of necessity, say for a car or a home. But for the ultrawealthy, it can be a way to access billions without producing income, and thus, income tax.

The tax math provides a clear incentive for this. If you own a company and take a huge salary, you’ll pay 37% in income tax on the bulk of it. Sell stock and you’ll pay 20% in capital gains tax — and lose some control over your company. But take out a loan, and these days you’ll pay a single-digit interest rate and no tax; since loans must be paid back, the IRS doesn’t consider them income. Banks typically require collateral, but the wealthy have plenty of that.

The vast majority of the ultrawealthy’s loans do not appear in the tax records obtained by ProPublica since they are generally not disclosed to the IRS. But occasionally, the loans are disclosed in securities filings. In 2014, for example, Oracle revealed that its CEO, Ellison, had a credit line secured by about $10 billion of his shares.

Last year Tesla reported that Musk had pledged some 92 million shares, which were worth about $57.7 billion as of May 29, 2021, as collateral for personal loans.

With the exception of one year when he exercised more than a billion dollars in stock options, Musk’s tax bills in no way reflect the fortune he has at his disposal. In 2015, he paid $68,000 in federal income tax. In 2017, it was $65,000, and in 2018 he paid no federal income tax. Between 2014 and 2018, he had a true tax rate of 3.27%.

The IRS records provide glimpses of other massive loans. In both 2016 and 2017, investor Carl Icahn, who ranks as the 40th-wealthiest American on the Forbes list, paid no federal income taxes despite reporting a total of $544 million in adjusted gross income (which the IRS defines as earnings minus items like student loan interest payments or alimony). Icahn had an outstanding loan of $1.2 billion with Bank of America among other loans, according to the IRS data. It was technically a mortgage because it was secured, at least in part, by Manhattan penthouse apartments and other properties.

Borrowing offers multiple benefits to Icahn: He gets huge tranches of cash to turbocharge his investment returns. Then he gets to deduct the interest from his taxes. In an interview, Icahn explained that he reports the profits and losses of his business empire on his personal taxes.

Icahn acknowledged that he is a “big borrower. I do borrow a lot of money.” Asked if he takes out loans also to lower his tax bill, Icahn said: “No, not at all. My borrowing is to win. I enjoy the competition. I enjoy winning.”

He said adjusted gross income was a misleading figure for him. After taking hundreds of millions in deductions for the interest on his loans, he registered tax losses for both years, he said. “I didn’t make money because, unfortunately for me, my interest was higher than my whole adjusted income.”

Asked whether it was appropriate that he had paid no income tax in certain years, Icahn said he was perplexed by the question. “There’s a reason it’s called income tax,” he said. “The reason is if, if you’re a poor person, a rich person, if you are Apple — if you have no income, you don’t pay taxes.” He added: “Do you think a rich person should pay taxes no matter what? I don’t think it’s germane. How can you ask me that question?”

Skeptics might question our analysis of how little the superrich pay in taxes. For one, they might argue that owners of companies get hit by corporate taxes. They also might counter that some billionaires cannot avoid income — and therefore taxes. And after death, the common understanding goes, there’s a final no-escape clause: the estate tax, which imposes a steep tax rate on sums over $11.7 million.

ProPublica found that none of these factors alter the fundamental picture.

Take corporate taxes. When companies pay them, economists say, these costs are passed on to the companies’ owners, workers or even consumers. Models differ, but they generally assume big stockholders shoulder the lion’s share.

Corporate taxes, however, have plummeted in recent decades in what has become a golden age of corporate tax avoidance. By sending profits abroad, companies like Google, Facebook, Microsoft and Apple have often paid little or no U.S. corporate tax.

For some of the nation’s wealthiest people, particularly Bezos and Musk, adding corporate taxes to the equation would hardly change anything at all. Other companies like Berkshire Hathaway and Walmart do pay more, which means that for people like Buffett and the Waltons, corporate tax could add significantly to their burden.

It is also true that some billionaires don’t avoid taxes by avoiding incomes. In 2018, nine of the 25 wealthiest Americans reported more than $500 million in income and three more than $1 billion.

In such cases, though, the data obtained by ProPublica shows billionaires have a palette of tax-avoidance options to offset their gains using credits, deductions (which can include charitable donations) or losses to lower or even zero out their tax bills. Some own sports teams that offer such lucrative write-offs that owners often end up paying far lower tax rates than their millionaire players. Others own commercial buildings that steadily rise in value but nevertheless can be used to throw off paper losses that offset income.

Michael Bloomberg, the 13th-richest American on the Forbes list, often reports high income because the profits of the private company he controls flow mainly to him.

In 2018, he reported income of $1.9 billion. When it came to his taxes, Bloomberg managed to slash his bill by using deductions made possible by tax cuts passed during the Trump administration, charitable donations of $968.3 million and credits for having paid foreign taxes. The end result was that he paid $70.7 million in income tax on that almost $2 billion in income. That amounts to just a 3.7% conventional income tax rate. Between 2014 and 2018, Bloomberg had a true tax rate of 1.30%.

In a statement, a spokesman for Bloomberg noted that as a candidate, Bloomberg had advocated for a variety of tax hikes on the wealthy. “Mike Bloomberg pays the maximum tax rate on all federal, state, local and international taxable income as prescribed by law,” the spokesman wrote. And he cited Bloomberg’s philanthropic giving, offering the calculation that “taken together, what Mike gives to charity and pays in taxes amounts to approximately 75% of his annual income.”

The statement also noted: “The release of a private citizen’s tax returns should raise real privacy concerns regardless of political affiliation or views on tax policy. In the United States no private citizen should fear the illegal release of their taxes. We intend to use all legal means at our disposal to determine which individual or government entity leaked these and ensure that they are held responsible.”

Ultimately, after decades of wealth accumulation, the estate tax is supposed to serve as a backstop, allowing authorities an opportunity to finally take a piece of giant fortunes before they pass to a new generation. But in reality, preparing for death is more like the last stage of tax avoidance for the ultrawealthy.

University of Southern California tax law professor Edward McCaffery has summarized the entire arc with the catchphrase “buy, borrow, die.”

The notion of dying as a tax benefit seems paradoxical. Normally when someone sells an asset, even a minute before they die, they owe 20% capital gains tax. But at death, that changes. Any capital gains till that moment are not taxed. This allows the ultrarich and their heirs to avoid paying billions in taxes. The “step-up in basis” is widely recognized by experts across the political spectrum as a flaw in the code.

Then comes the estate tax, which, at 40%, is among the highest in the federal code. This tax is supposed to give the government one last chance to get a piece of all those unrealized gains and other assets the wealthiest Americans accumulate over their lifetimes.

It’s clear, though, from aggregate IRS data, tax research and what little trickles into the public arena about estate planning of the wealthy that they can readily escape turning over almost half of the value of their estates. Many of the richest create foundations for philanthropic giving, which provide large charitable tax deductions during their lifetimes and bypass the estate tax when they die.

Wealth managers offer clients a range of opaque and complicated trusts that allow the wealthiest Americans to give large sums to their heirs without paying estate taxes. The IRS data obtained by ProPublica gives some insight into the ultrawealthy’s estate planning, showing hundreds of these trusts.

The result is that large fortunes can pass largely intact from one generation to the next. Of the 25 richest people in America today, about a quarter are heirs: three are Waltons, two are scions of the Mars candy fortune and one is the son of Estée Lauder.

In the past year and a half, hundreds of thousands of Americans have died from COVID-19, while millions were thrown out of work. But one of the bleakest periods in American history turned out to be one of the most lucrative for billionaires. They added $1.2 trillion to their fortunes from January 2020 to the end of April of this year, according to Forbes.

That windfall is among the many factors that have led the country to an inflection point, one that traces back to a half-century of growing wealth inequality and the financial crisis of 2008, which left many with lasting economic damage. American history is rich with such turns. There have been famous acts of tax resistance, like the Boston Tea Party, countered by less well-known efforts to have the rich pay more.

One such incident, over half a century ago, appeared as if it might spark great change. President Lyndon Johnson’s outgoing treasury secretary, Joseph Barr, shocked the nation when he revealed that 155 Americans making over $200,000 (about $1.6 million today) had paid no taxes. That group, he told the Senate, included 21 millionaires.

“We face now the possibility of a taxpayer revolt if we do not soon make major reforms in our income taxes,” Barr said. Members of Congress received more furious letters about the tax scofflaws that year than they did about the Vietnam War.

Congress did pass some reforms, but the long-term trend was a revolt in the opposite direction, which then accelerated with the election of Ronald Reagan in 1980. Since then, through a combination of political donations, lobbying, charitable giving and even direct bids for political office, the ultrawealthy have helped shape the debate about taxation in their favor.

One apparent exception: Buffett, who broke ranks with his billionaire cohort to call for higher taxes on the rich. In a famous New York Times op-ed in 2011, Buffett wrote, “My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.”

Buffett did something in that article that few Americans do: He publicly revealed how much he had paid in personal federal taxes the previous year ($6.9 million). Separately, Forbes estimated his fortune had risen $3 billion that year. Using that information, an observer could have calculated his true tax rate; it was 0.2%. But then, as now, the discussion that ensued on taxes was centered on the traditional income tax rate.

In 2011, President Barack Obama proposed legislation, known as the Buffett Rule. It would have raised income tax rates on people reporting over a million dollars a year. It didn’t pass. Even if it had, however, the Buffett Rule wouldn’t have raised Buffett’s taxes significantly. If you can avoid income, you can avoid taxes.

Today, just a few years after Republicans passed a massive tax cut that disproportionately benefited the wealthy, the country may be facing another swing of the pendulum, back toward a popular demand to raise taxes on the wealthy. In the face of growing inequality and with spending ambitions that rival those of Franklin D. Roosevelt or Johnson, the Biden administration has proposed a slate of changes. These include raising the tax rates on people making over $400,000 and bumping the top income tax rate from 37% to 39.6%, with a top rate for long-term capital gains to match that. The administration also wants to up the corporate tax rate and to increase the IRS’ budget.

Some Democrats have gone further, floating ideas that challenge the tax structure as it’s existed for the last century. Oregon Sen. Ron Wyden, the chairman of the Senate Finance Committee, has proposed taxing unrealized capital gains, a shot through the heart of Macomber. Sens. Elizabeth Warren and Bernie Sanders have proposed wealth taxes.

Aggressive new laws would likely inspire new, sophisticated avoidance techniques. A few countries, including Switzerland and Spain, have wealth taxes on a small scale. Several, most recently France, have abandoned them as unworkable. Opponents contend that they are complicated to administer, as it is hard to value assets, particularly of private companies and property.

What it would take for a fundamental overhaul of the U.S. tax system is not clear. But the IRS data obtained by ProPublica illuminates that all of these conversations have been taking place in a vacuum. Neither political leaders nor the public have ever had an accurate picture of how comprehensively the wealthiest Americans avoid paying taxes.

Buffett and his fellow billionaires have known this secret for a long time. As Buffett put it in 2011: “There’s been class warfare going on for the last 20 years, and my class has won.”


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Hundreds of PPP Loans Went to Fake Farms in Absurd Places

Above: Photo Credit / Adobe Stock

Hundreds of PPP Loans Went to Fake Farms in Absurd Places

by Derek Willis and Lydia DePillis for ProPublica

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

 “This story was originally published by ProPublica.”

The shoreline communities of Ocean County, New Jersey, are a summertime getaway for throngs of urbanites, lined with vacation homes and ice cream parlors. Not exactly pastoral — which is odd, considering dozens of Paycheck Protection Program loans to supposed farms that flowed into the beach towns last year.

As the first round of the federal government’s relief program for small businesses wound down last summer, “Ritter Wheat Club” and “Deely Nuts,” ostensibly a wheat farm and a tree nut farm, each got $20,833, the maximum amount available for sole proprietorships. “Tomato Cramber,” up the coast in Brielle, got $12,739, while “Seaweed Bleiman” in Manahawkin got $19,957.

None of these entities exist in New Jersey’s business records, and the owners of the homes at which they are purportedly located expressed surprise when contacted by ProPublica. One entity categorized as a cattle ranch, “Beefy King,” was registered in PPP records to the home address of Joe Mancini, the mayor of Long Beach Township.

“There’s no farming here: We’re a sandbar, for Christ’s sake,” said Mancini, reached by telephone. Mancini said that he had no cows at his home, just three dogs.

All of these loans to nonexistent businesses came through Kabbage, an online lending platform that processed nearly 300,000 PPP loans before the first round of funds ran out in August 2020, second only to Bank of America. In total, ProPublica found 378 small loans totaling $7 million to fake business entities, all of which were structured as single-person operations and received close to the largest loan for which such micro-businesses were eligible. The overwhelming majority of them are categorized as farms, even in the unlikeliest of locales, from potato fields in Palm Beach to orange groves in Minnesota.

The Kabbage pattern is only one slice of a sprawling fraud problem that has suffused the Paycheck Protection Program from its creation in March 2020 as an attempt to keep small businesses on life support while they were forced to shut down. With speed as its strongest imperative, the effort run by the federal Small Business Administration initially lacked even the most basic safeguards to prevent opportunists from submitting fabricated documentation, government watchdogs have said.

While that may have allowed millions of businesses to keep their doors open, it has also required a massive cleanup operation on the backend. The SBA’s inspector general estimated in January that the agency approved loans for 55,000 potentially ineligible businesses, and that 43,000 obtained more money than their reported payrolls would justify. The Department of Justice, relying on special agents from across the government to investigate, has brought charges against hundreds of individuals accused of gaming pandemic response programs.

Drawn by generous fees for each loan processed, Kabbage was among a band of online lenders that joined enthusiastically in originating loans through their automated platforms. That helped millions of borrowers who’d been turned down by traditional banks, but it also created more opportunities for cheating. ProPublica examined SBA loans processed by several of the most prolific online lenders and found that Kabbage appears to have originated the most loans to businesses that don’t appear to exist and the only concentration of loans to phantom farms.

In some cases, these problems would’ve been easy to spot with just a little more upfront diligence — which the program’s structure did not encourage.

“Pushing this through financial institutions created some pretty bad incentives,” said Naftali Harris, the CEO of Sentilink, which helps lenders detect potential identity theft. “This is definitely a case where companies that decided they wanted to be more careful in terms of giving out loans were penalized for doing so.”

Presented with ProPublica’s findings, SBA inspector general spokeswoman Farrah Saint-Surin said that her office had hundreds of investigations underway, but that she did “not have any information to share or available for public reporting at this time.” Reuters reported that federal investigators were probing whether Kabbage and other fintech lenders miscalculated PPP loan amounts, and the DOJ declined to confirm or deny the existence of any investigation to ProPublica.

Kabbage, which was acquired by American Express last fall, did not have an explanation for ProPublica’s specific findings, but it said it adhered to required fraud protocols. “At any point in the loan process, if fraudulent activity was suspected or confirmed, it was reported to FinCEN, the SBA’s Office of the Inspector General and other federal investigators, with Kabbage providing its full cooperation,” spokesman Paul Bernardini said in an emailed statement.

As soon as the pandemic swept across America, Kabbage was in trouble.

The online lending platform had launched in 2009 as part of a generation of financial technology companies known as “non-banks,” “alternative lenders” or simply “fintechs” that act as an intermediary between investors and small businesses that might not have relationships with traditional banks. Based in Atlanta, it had become a buzzy standout in the city’s tech scene, offering employees Silicon Valley perks like free catered lunches and beer on tap. It advertised its mission as helping small businesses “acquire funds they need for their big breaks,” as a recruiting video parody of Michael Jackson’s “Thriller” put it in 2016.

The basic innovation behind the burgeoning fintech industry is automating underwriting and incorporating more data sources into risk evaluation, using statistical models to determine whether an applicant will repay a loan. That lower barrier to credit comes with a price: Kabbage would lend to borrowers with thin or checkered credit histories, in exchange for steep fees. The original partner for most of its loans, Celtic Bank, is based in Utah, which has no cap on interest rate, allowing Kabbage to charge more in states with stricter regulations.

With backing from the powerhouse venture capital firm SoftBank, Kabbage had been planning an IPO. Its model foundered, however, when Kabbage’s largest customer base — small businesses like coffee shops, hair salons and yoga studios — was forced to shut down last March. Kabbage stopped writing loans, even for businesses that weren’t harmed by the pandemic. Days later, it furloughed more than half of its nearly 600-person staff and faced an uncertain future.

The Paycheck Protection Program, which was signed into law as part of the CARES Act on March 27, 2020, with an initial $349 billion in funding, was a lifeline not just to small businesses, but fintechs as well. Lenders would get a fee of 5% on loans worth less than $350,000, which would account for the vast majority of transactions. The loans were government guaranteed, and processors bore almost no liability, as long as they made sure that applications were complete.

At first, encouraged by the Treasury Department, traditional banks prioritized their own customers — an efficient way to process applications with little fraud risk, since the borrowers’ information was already on file. But that left millions of the smallest businesses, including independent contractors, out to dry. They turned instead to a collection of online lenders that have sprung up offering short-term loans to businesses: Kabbage, Lendio, Bluevine, FundBox, Square Capital and others would process applications automatically, with little human review required.

For the platforms, this was also easy money. In the first funding round that ran out last August, Kabbage completed 297,587 loans totaling $7 billion. It received 5% of each loan it made directly and an undisclosed cut of the proceeds for those it processed for banks; its total revenue was likely in the hundreds of millions of dollars. A lawsuit filed by a South Carolina accounting firm alleges that Kabbage was among several lenders that refused to pay fees to agents who helped put together applications, even though the CARES Act had said they could charge up to 1% of the smaller loans (a provision that was later reversed). For Kabbage, that revenue kept the company alive while it sought a buyer.

“For all of these guys, it was like shooting fish in a barrel. If you could do the minimum amount of due diligence required, you could fill up the pipeline with these applications,” said a former Kabbage executive, one of four former employees interviewed by ProPublica. They spoke on the condition of anonymity to avoid retaliation at their current jobs or from industry giant American Express.

To handle the volume, Kabbage brought back laid-off workers starting at $15 an hour. When that failed to attract enough people, they increased the hourly rate to $35, and then $40, and awarded gift cards for reaching certain benchmarks, according to a former employee with visibility into the loan processing. “At a certain point, they were like, ‘Yes, get more applications out and you’ll get this reward if you do,’” the former employee said. (Bernardini said the company did not offer incentive compensation.)

In a report on its PPP participation through last August, Kabbage boasted that 75% of all approved applications were processed without human review. For every 790 employees at major U.S. banks, the report said, Kabbage had one. That’s in part because traditional banks, which also take deposits, are much more heavily regulated than fintech institutions that just process loans. To participate in the PPP, fintechs had to quickly set up systems that could comply with anti-money laundering laws. The human review that did happen, according to two people involved in it, was perfunctory.

“They weren’t saying, ‘Is this legitimate?’ They were just saying, ‘Are all the fields filled out?’” said another former employee. As acquisition talks proceeded, the employee noted, Kabbage managers who held the most company stock had a built-in incentive to process as many loans as possible. “If there’s anything suspicious, you can pass it along to account review, but account review was full of people who stood to make a lot of money from the acquisition.”

One situation in which Kabbage approved a suspicious loan became public in a Florida lawsuit filed by a woman, Latoya Clark, who received more than $1 million in PPP loans to three businesses. When the funds were deposited into accounts at JPMorgan Chase, the bank discovered that Clark’s businesses hadn’t been incorporated before the PPP program’s cutoff and froze the accounts. Clark sued Chase, and Chase then filed a counterclaim against the borrower and Kabbage, which had originated the loan despite its questionable documentation. In its response, Kabbage said it had not yet completed its investigation of the incident.

Although the Justice Department rarely names lenders that processed fraudulent PPP applications, Kabbage has been named at least twice. One case involved two loans worth $1.8 million to businesses that submitted forged information, and the other involved a business that had inflated its payroll numbers and submitted a similar application to U.S. Bank, which flagged authorities. Kabbage had simply approved the $940,000 loan. American Express’ Bernardini declined to comment further on pending litigation.

Shortly after the application period for PPP’s first round closed on Aug. 8, American Express announced the Kabbage purchase. But the transaction included none of Kabbage’s loan portfolios, either from the PPP or its pre-pandemic conventional loans. The PPP loans had either been sold to SBA-approved banks or bought by the Federal Reserve. Bernardini wouldn’t say which banks now own the loans, however, and said that no potentially fraudulent loans had been pledged to the Fed.

In April, an Ocean County, New Jersey, resident contacted ProPublica after seeing his name attached to a Kabbage loan for a nonexistent “melon farm.” To see whether it was an isolated incident, ProPublica took basic information the government released after a Freedom of Information Act lawsuit by ProPublica and others and compared it with state business entity registries. Although registries don’t pick up all sole proprietorships and independent contractors, the absence of a name is an indication that the business might not exist.

As it turned out, Kabbage had made more than 60 loans in New Jersey to unlisted businesses. Fake farms also showed up repeatedly in the SBA’s Economic Injury Disaster Loan Program, according to reports from localnewsoutlets.

A common tie became apparent when the resident of the home to which one nonexistent business was registered said that he was a client of the certified public accountants at Ciccone, Koseff & Company. In March 2020, the firm notified its clients of what it called an “ultimately unsuccessful ransomware attack” that occurred the previous month. According to information filed with Maine’s attorney general, the attackers acquired Social Security numbers and financial information.

Several other clients of the accounting firm, including Mancini, the Long Beach mayor, also had loans registered to their addresses. Reached by phone, firm founder Ray Ciccone declined to comment.

But that CPA’s data breach didn’t account for all of the suspicious loans ProPublica found across the country. Searches for PPP applicants that didn’t show up in state registration records yielded hundreds in 28 more states, with dense clusters in Florida, Nebraska and Virginia. Other lenders had nonexistent businesses as well, but fake farms only showed up in Kabbage loans. Most followed a distinctive naming convention, with part of the name of a resident or former resident of the home to which the business is registered, plus a random agricultural term.

Some of the fake loans listed addresses of people who’d also legitimately applied for their businesses. Hartington, Nebraska, anesthesiologist Bruce Reifenrath received a PPP loan for his practice in nearby Yankton, South Dakota. That’s why the idea of one being approved for a “potato farm” was so strange. “We did a PPP loan last spring and it’s pretty extensive, the documentation,” Reifenrath said.

Reifenrath was part of a cluster of dubious Kabbage loans in Hartington that also included the home of J. Scott Schrempp, the president of the Bank of Hartington, who confirmed that he did not own a strawberry farm. Schrempp said he had noticed the fake loan, and reported it to the SBA.

The SBA data only reflects approved applications received from lenders, some of which are then caught and not funded. The SBA also periodically updates its dataset to remove loans canceled by lenders. But none of the suspicious loans pulled by ProPublica show undisbursed funds, and they all have remained in the dataset for more than eight months.

One possible mechanism for the invented businesses is a technique known as synthetic identity theft, in which a criminal obtains pieces of personally identifiable information — such as a home address, a Social Security number and a birthdate — and combines it with fake information to build a credit profile. The associated bank account then routes to the fraudster, not the owner of the original information.

None of the residents of the phony farms ProPublica contacted were getting notices that they needed to repay the loans they didn’t apply for, because they didn’t get any money. But that doesn’t mean they’re not at risk, according to James Lee, chief operating officer at the Identity Theft Resource Center.

“Just having an address linked to your name on a fraudulent loan can impact your credit,” Lee said. It can also pose problems for pre-employment background checks, insurance applications or new identification documents like passports and driver’s licenses.

Meanwhile, if not corrected, the fabricated identities will stay in circulation and become better at fooling other financial institutions. “Those records get built into the credit and authentication systems used by government and commercial entities,” Lee said. “Each next time they are used and authenticated, the more ‘real’ they become. That’s what makes synthetic identity fraud so insidious.”

This, however, is largely not Kabbage’s problem anymore.

After its huge blitz of PPP loans last summer, Kabbage had hundreds of thousands of borrowers whose loans would need to be serviced until they were closed out. The loans could either be forgiven, if the borrower demonstrated that they spent most of the money on payroll, or paid back with interest. But American Express didn’t acquire the part of Kabbage’s business that owned those loans. Instead, a separate entity called K Servicing would handle loan forgiveness and take applications for a second PPP draw that Congress funded in December. The servicer is led by former Kabbage employees and its website looks very similar to Kabbage’s, but American Express says it has no affiliation.

If Kabbage was understaffed for the volume of PPP loans it took on before the acquisition, the situation has apparently worsened since then. Reddit, Yelp, Consumer Affairs, Trustpilot, Facebook and Better Business Bureau threads are replete with complaints from customers whose applications were denied or who received no communication from the company. When the SBA changed the rules in February to make the program more generous to independent contractors, K Servicing couldn’t incorporate the new forms into its processing system. So it told all new applicants to apply through another company, SmartBiz, which had operated as a mostly online processor of SBA loans even before the pandemic.

K Servicing is run by Kabbage’s former head of program management, Laquisha Milner, who also runs her own consulting firm. “Due to extenuating circumstances beyond our control, currently, our processing function is delayed,” Milner emailed in response to detailed questions from ProPublica. “We are relentlessly exploring all available options to ensure our existing customers are able to maximize their loan forgiveness.”

Jennifer Dienst is a freelance travel and events writer who received her first-draw loan from Kabbage and wants to apply for forgiveness before her window for doing so closes in the fall, but she has been stymied by K Servicing’s failure to make the forms available. “Please be patient with us as we prepare for the new forms,” a message on the loan portal reads.

Meanwhile, Dienst’s account has started accruing interest, which Milner said will not be charged if the loan is forgiven. But it’s making Dienst nervous.

“It’s always the same response from K Servicing — we’re updating our forgiveness forms and they’ll be made available soon,” Dienst said. “They’ve been saying that for months.”

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Floodgates are Opening on The Truth of Trump: ‘Madman’, ‘Racist, Sexist Pig’ and ‘F*cking Lunatic’

Above: Photo Collage / Lynxotic / Random House

Quotes from new book are illuminating to say the least

In a report from The Guardian, based on pre-release galleys of “Battle for The Soul” written by Atlantic staff writer Edward Isaac-Dovere, the private exchanges about Trump bore little resemblance to the public niceties and careful self-censoring that went on during “the former guy’s” disastrous reign from the Oval Office.

According to the excerpts shared with The Guardian, in direct quoted pages former President Obama slammed Trump throughout the 2016 campaign and during 45’s term in office. According to Atlantic staff writer Edward Isaac-Dovere in his forthcoming book. Obama referenced Trump as a “madman”, “lunatic”, “racist”, “sexist pig” and a “corrupt motherfu–er”.

More often: ‘I didn’t think it would be this bad.’ Sometimes: ‘I didn’t think we’d have a racist, sexist pig.’ Depending on the outrage of the day … a passing ‘that fucking lunatic’ with a shake of his head.”

obama Quoted in “battle for the soul” by Edward-Isaac Dovere

Obama isn’t the only person that has something unflattering to say about the Trump, as news that the New York attorney general’s office will be going forward with a now-criminal investigation of the Trump Organization, Michael Cohen, the former personal lawyer and fixer for 45 hilariously tweeted Don behind bars:

We’ve provided a look at   Battle for the Soul , by Edward-Isaac Dovere, below, along with a description, provided courtesy of the Bookshop (and the publisher), along with some links for a variety of options where to purchase.

Battle for the Soul: Inside the Democrats’ Campaigns to Defeat

The 2020 presidential campaign was a defining moment for America. As Donald Trump and his nativist populism cowed the Republican Party into submission, many Democrats–haunted by Hillary Clinton’s shocking loss in 2016, which led to a four-year-long identity crisis–were convinced he would be unbeatable.

Their party and the country, it seemed, might never recover. How, then, did Democrats manage to win the presidency, especially after the longest primary race and the biggest field ever?

How did they keep themselves united through an internal struggle between newly empowered progressives and establishment forces–playing out against a pandemic, an economic crisis, and a new racial reckoning? 

Edward-Isaac Dovere’s Battle for the Soul is the searing, fly-on-the-wall account of the Democrats’ journey through recalibration and rebirth.

Dovere traces this process from the early days in the wilderness of the post-Obama era, though the jockeying of potential candidates, to the backroom battles and exhausting campaigns, to the unlikely triumph of the man few expected to win, and through the inauguration and insurrection at the Capitol. 

Dovere draws on years of on-the-ground reporting and contemporaneous conversations with the key players–whether in Pete Buttigieg’s hotel suite in Des Moines an hour before he won the Iowa caucuses or Joe Biden’s first-ever interview in the Oval Office–as well as aides, advisors, and voters.

With unparalleled access and an insider’s command of the campaign, Battle for the Soul offers a compelling look at the policies, politics, people and the often absurd process of running for president. This fresh and timely story brings you on the trail, into the private rooms and along to eavesdrop on critical conversations. You will never see campaigns or this turning point in our history the same way again.

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Michael Lewis’ Newest Bestseller “Premonition” is his latest Triumph in Capturing the Zeitgeist

A unique talent for choosing and presenting exactly the theme and subject of the moment, and for posterity

Above:Photo from ‘The Big Short’ courtesy of Paramount

Very few authors have the intense feeling for the “zeitgeist” that Michael has shown throughout his long career. The ability to capture the spirit of the times so well is also possibly the reason why so many of his books have been snapped up and made into successful films. Examples are “The Big Short” (Christian Bale), “Moneyball” (Brad Pitt), “The Blind Side” (Sandra Bullock), all three of these also received Best Picture Oscar nominations.

While perhaps not an author to be remembered as a high literary genius such as James Joyce or William Shakespeare, the body of work, as a chronicle of modern times seen through the lens of his minds eye is, nevertheless, substantive and engaging. While “The Big Short”, both the book and subsequent film, capture with amazing clarity a confusing period that has been in many ways glossed over, even willfully, by those that were partially responsible but never held to account.

Though it remains to be seen how the future will look back on the 2020 novel coronavirus era, “Premonition” has, once more, the same potential to become one, potentially definitive portrait, of the crisis and it’s emergence into a full blown worldwide pandemic.

Now, soon, “The Premonition” is set to be produced by Amy Pascal for Pascal Pictures, with Rachel O’Connor. Directors are slated to be Phil Lord and Chris Miller who are mostly known for lighter fare.

To make it easier a great selection of Michael Lewis’ books are featured front and center, below, along with descriptions, provided courtesy of the Bookshop (and the various publishers), and with some links for a variety of options of where to purchase.

The Premonition: A Pandemic Story

Fortunately, we are still a nation of skeptics. Fortunately, there are those among us who study pandemics and are willing to look unflinchingly at worst-case scenarios. Michael Lewis’s taut and brilliant nonfiction thriller pits a band of medical visionaries against the wall of ignorance that was the official response of the Trump administration to the outbreak of COVID-19.

The characters you will meet in these pages are as fascinating as they are unexpected. A thirteen-year-old girl’s science project on transmission of an airborne pathogen develops into a very grown-up model of disease control.

A local public-health officer uses her worm’s-eye view to see what the CDC misses, and reveals great truths about American society.

A secret team of dissenting doctors, nicknamed the Wolverines, has everything necessary to fight the pandemic: brilliant backgrounds, world-class labs, prior experience with the pandemic scares of bird flu and swine flu…everything, that is, except official permission to implement their work.

Michael Lewis is not shy about calling these people heroes for their refusal to follow directives that they know to be based on misinformation and bad science. Even the internet, as crucial as it is to their exchange of ideas, poses a risk to them. They never know for sure who else might be listening in.

The Big Short: Inside the Doomsday Machine

The real story of the crash began in bizarre feeder markets where the sun doesn’t shine and the SEC doesn’t dare, or bother, to tread: the bond and real estate derivative markets where geeks invent impenetrable securities to profit from the misery of lower- and middle-class Americans who can’t pay their debts.

The smart people who understood what was or might be happening were paralyzed by hope and fear; in any case, they weren’t talking.

Michael Lewis creates a fresh, character-driven narrative brimming with indignation and dark humor, a fitting sequel to his #1 bestseller Liar’s Poker.

Out of a handful of unlikely-really unlikely-heroes, Lewis fashions a story as compelling and unusual as any of his earlier bestsellers, proving yet again that he is the finest and funniest chronicler of our time.

Liar’s Poker

Michael Lewis was fresh out of Princeton and the London School of Economics when he landed a job at Salomon Brothers, one of Wall Street’s premier investment firms.

During the next three years, Lewis rose from callow trainee to bond salesman, raking in millions for the firm and cashing in on a modern-day gold rush. Liar’s Poker is the culmination of those heady, frenzied years–a behind-the-scenes look at a unique and turbulent time in American business.

From the frat-boy camaraderie of the forty-first-floor trading room to the killer instinct that made ambitious young men gamble everything on a high-stakes game of bluffing and deception, here is Michael Lewis’s knowing and hilarious insider’s account of an unprecedented era of greed, gluttony, and outrageous fortune.

Moneyball: The Art of Winning an Unfair Game

Moneyball is a quest for the secret of success in baseball.

In a narrative full of fabulous characters and brilliant excursions into the unexpected, Michael Lewis follows the low-budget Oakland A’s, visionary general manager Billy Beane, and the strange brotherhood of amateur baseball theorists. They are all in search of new baseball knowledge–insights that will give the little guy who is willing to discard old wisdom the edge over big money. Also made into a hit movie starring Brad Pitt, Moneyball is a book that exposes human nature, and how it can suddenly be overcome when unique perspectives lead to innovative choices.

The Blind Side: Evolution of a Game

When we first meet him, Michael Oher is one of thirteen children by a mother addicted to crack; he does not know his real name, his father, his birthday, or how to read or write.

He takes up football, and school, after a rich, white, Evangelical family plucks him from the streets. Then two great forces alter Oher: the family’s love and the evolution of professional football itself into a game where the quarterback must be protected at any cost.

Our protagonist becomes the priceless package of size, speed, and agility necessary to guard the quarterback’s greatest vulnerability, his blind side.

Flash Boys: A Wall Street Revolt

In Michael Lewis’s game-changing bestseller, a small group of Wall Street iconoclasts realize that the U.S. stock market has been rigged for the benefit of insiders.

They band together–some of them walking away from seven-figure salaries–to investigate, expose, and reform the insidious new ways that Wall Street generates profits. If you have any contact with the market, even a retirement account, this story is happening to you. Billions have been spent by Wall Street firms and stock exchanges to gain the advantage of a millisecond. “Is it a scam?” 60 Minutes correspondent Steve Kroft asks during his interview with the author, It’s bigger than a scam, Lewis says.

Lewis further explains how ordinary investors are affected and argues that high-frequency traders have created instability in the stock market — for everyone. A reoccurring metaphor Lewis uses in his book “Flash Boys” is one of “prey and predators.” According to Lewis, the prey is “anybody who’s actually an investor in the stock market.”

The Fifth Risk: Undoing Democracy

Michael Lewis’s brilliant narrative of the Trump administration’s botched presidential transition takes us into the engine rooms of a government under attack by its leaders through willful ignorance and greed.

The government manages a vast array of critical services that keep us safe and underpin our lives from ensuring the safety of our food and drugs and predicting extreme weather events to tracking and locating black market uranium before the terrorists do. The Fifth Risk masterfully and vividly unspools the consequences if the people given control over our government have no idea how it works.

The Undoing Project: A Friendship That Changed Our Minds

Forty years ago, Israeli psychologists Daniel Kahneman and Amos Tversky wrote a series of breathtakingly original papers that invented the field of behavioral economics.

One of the greatest partnerships in the history of science, Kahneman and Tversky’s extraordinary friendship incited a revolution in Big Data studies, advanced evidence-based medicine, led to a new approach to government regulation, and made much of Michael Lewis’s own work possible. In The Undoing Project, Lewis shows how their Nobel Prize-winning theory of the mind altered our perception of reality.

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After the insurrection, America’s far-right groups get more extreme

As right-wing groups reorganize after the Capitol riot, scholars of the movement foresee increased polarization

This article is republished from The Conversation under a Creative Commons license.

As the U.S. grapples with domestic extremism in the wake of the Jan. 6 insurrection at the U.S. Capitol, warnings about more violence are coming from the FBI Director Chris Wray and others. The Conversation asked Matthew Valasik, a sociologist at Louisiana State University, and Shannon E. Reid, a criminologist at the University of North Carolina – Charlotte, to explain what right-wing extremist groups in the U.S. are doing. The scholars are co-authors of “Alt-Right Gangs: A Hazy Shade of White,” published in September 2020; they track the activities of far-right groups like the Proud Boys.

What are U.S. extremist groups doing since the Jan. 6 riot?

Local chapters of the Proud Boys, Oath Keepers, Groypers and others are breaking away from their groups’ national figureheads. For instance, some local Proud Boys chapters have been explicitly cutting ties with national leader Enrique Tarrio, the group’s chairman.

Tarrio was arrested on federal weapons charges in the days before the insurrection, but he has also been revealed as a longtime FBI informant. He reportedly aided authorities in a variety of criminal cases, including those involving drug sales, gambling and human smuggling – though he has not yet been connected with cases against Proud Boys members.

When a leader of a far-right group or street gang leaves, regardless of the reason, it is common for a struggle to emerge among remaining members who seek to consolidate power. That can result in violence spilling over into the community as groups attempt to reshape themselves.

While some of the splinter Proud Boys chapters will likely maintain the Proud Boys brand, at least for the time being, others may evolve and become more radicalized. The Base, a neo-Nazi terror group, has recruited from among the ranks of Proud Boys. As the Proud Boys sheds affiliates, it would not be surprising for those with more enthusiasm about hateful activism to seek out more extreme groups. Less committed groups will wither away.

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How does that response compare with what happened after 2017’s ‘Unite the Right’ rally in Charlottesville?

Neither the Capitol insurrection nor the Charlottesville rally produced the response from mainstream America that far-right groups had hoped for. Rather than rising up in a groundswell of support, most Americans were appalled – some so much that they have abandoned the Republican Party.

Additionally, right-wingers have been hit hard by the post-insurrection actions by large technology companies like Facebook, Twitter, Apple, Google and Amazon. They took down far-right group members’ accounts and removed right-wing social media platforms, including permanently blacklisting Donald Trump’s Twitter account and temporarily blocking all traffic to Parler, a conservative social media platform. Those steps are more significant than earlier moderation and algorithm changes those companies had undertaken in previous efforts to curb online extremism.

Another major difference is the lack of regret. Nobody on the right wanted to be associated with Charlottesville after it happened. Figureheads of the far right who had initially promoted that rally saw the negative public reaction and distanced themselves, even condemning the “Unite the Right” rally.

After the insurrection at the Capitol, their response was different. They did not split and blame other right-wing groups. Instead, conservative and extreme-right circles have united behind a false claim that they did nothing wrong, and alleged, despite all the evidence to the contrary, that left-wing activists assaulted the Capitol – while disguised as right-wingers.

Are extremist groups attracting new members?

Some members have left extremist groups in the wake of the Jan. 6 violence. The members who remain, and the new members they are attracting, are increasing the radicalization of far-right groups. As the less committed members abandon these far-right groups, only the more devout remain. Such a shift is going to alter the subculture of these groups, driving them farther to the right. We expect this polarization will only accelerate the reactionary behaviors and extremist tendencies of these far-right groups.

Right-wing pundits and conservative media are continuing to stoke fears about the Biden administration. We and other observers of right-wing groups expect that extremists will come to see the events of Jan. 6 as just the opening skirmish in a modern civil war. We anticipate they will continue to seek an end to American democracy and the beginning of a new society free – or even purged – of groups the right wing fears, including immigrants, Jewish people, nonwhites, LGBTQ people and those who value multiculturalism.

We expect that these groups will continue to shift more and more to the extreme right, posing risks for acts of violence both large and small.

Have far-right extremists’ views toward the police changed?

With a Democratic administration and attorney general, the far right will no longer view federal law enforcement agencies as friendly, the way they did under the Trump administration. Rather, they view the police as the enemy.

Even before Joe Biden took office and the Republicans officially lost control of the U.S. Senate, the Capitol riot showed this divide between right-wing extremists and police. A Capitol Police officer was assaulted with a flagpole bearing an American flag, and some members of the mob were police officers and military personnel. Many more were military veterans.

It’s not clear what this different view of law enforcement means for police officers, active-duty military and veterans who are members of right-wing groups. But we anticipate that only those who are most zealously committed to far-right causes will remain active. That, in turn, will push those groups even farther to the extreme right.

Has anything changed for militias since Biden has become president?

In 2009, the Department of Homeland Security issued a report warning about the growing membership in far-right groups, including their active recruitment of military veterans. Shortly after the report was released, Republicans in Congress pushed for the report to be retracted and for dramatically reducing the federal effort to monitor far-right groups in the U.S. This permissive atmosphere allowed far-right groups to grow and spread nationwide.

The Trump administration further served far-right groups by failing to pay out federal grants for grassroots counterviolence programs, by refusing to help local law enforcement agencies with equipment or training to deal with these groups, and by routinely downplaying the violence perpetrated by these white power groups. Essentially, far-right groups were unpoliced for the past decade or more.

But that approach has ended. Merrick Garland’s appointment as Biden’s attorney general is a big signal: In his career at the Department of Justice before becoming a federal judge, Garland supervised the investigations of the 1995 Oklahoma City bombing and the 1996 Atlanta Olympics bombing.

These were two of the most noteworthy acts of far-right domestic terrorism in the nation’s history. Garland has said that he will make fighting right-wing violence and attacks on democracy major priorities of his tenure at the head of the Justice Department.

In January, Canada designated the Proud Boys and other right-wing groups as terrorist organizations, which puts pressure on U.S. law enforcement to reconsider how they evaluate, investigate and prosecute these extremist groups. Beyond law enforcement’s treating these far-right groups like street gangs, there are also laws in place to combat violence associated with domestic terrorism.

It appears that U.S. prosecutors may finally begin to take seriously the violent actions of Proud Boys, especially as more and more members are being charged with coordinating the breach of the U.S. Capitol Building.

But as police power comes to bear on these violent right-wing groups, many of their members remain at least as radicalized as they were on Jan. 6 — if not more so. Some may feel that more extreme measures are needed to resist the Biden administration.

Matthew Valasik, Associate Professor of Sociology, Louisiana State University and Shannon Reid, Associate Professor of Criminal Justice and Criminology, University of North Carolina – Charlotte

This article is republished from The Conversation under a Creative Commons license.

Trump will Launch Social Network “In a Few Months” according to Spokesperson

No where to go, now an attempt to go solo

After a lifetime ban from Twitter and other social media outlets in the aftermath of inciting the January 6th terrorist attack on the Capitol, today, on Fox News, a Trump spokesperson announced that he is starting his own network.

 Long-time adviser and spokesperson for the Trump campaign, Jason Miller,  stated on on Fox’s “MediaBuzz” that the former guy would be “returning to social media in probably about two or three months.” 

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In typical fashion spokesperson says it will be huge

Next he bragged that his return to social media would be via “his own platform” and that this new network would garner “tens of millions” of users and in his opinion would also “completely redefine the game.”

 “It’s going to completely redefine the game, and everybody is going to be waiting and watching to see what President Trump does, but it will be his own platform.”

—Jason Miller, Trump Spokesperson

This news comes at a time when the furor of constant rage tweeting from the former guy has finally died down. It remains to be seen if this announcement is credible as there are pending legal and financial challenges that could potentially stand in the way of such an undertaking. 


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The Golden Trump (Statue) Fiasco has Just Begun

Just when you thought it couldn’t go lower dept.

https://video.twimg.com/ext_tw_video/1365483668723105793/pu/vid/1280x720/Jd47DaRpQnu5E4OM.mp4?tag=10

Clearly there is something going on here and it seems blazingly obvious to everyone except those gathered to partake. The Conservative Political Action Conference (CPAC) of 2021 began in Orlando, Florida on Friday. And nearly straight away this thing grabbed the show by the horns (above).

Or at least the Twitter reaction and meme factory was impressed. For all the wrong reasons. The four years of the “former guy” were hard to live through for sane people. But it is becoming more and more apparent that those that reveled in those times were not just angry political weirdos but, possibly, certifiable.

First was the warning from the Chief of the Capitol Police that pro-former-guy and right wing militia members were plotting to set bombs, literally, off at the Capitol to coincide with Biden’s upcoming State of the Union Address.

“We know that members of the militia groups that were present on January 6th have stated their desires that they want to blow up the Capitol and kill as many members as possible with a direct nexus to the State of the Union.”

Capitol Police Chief Yogananda Pittman

Now, as the always bizarre anyway CPAC conference convenes they decide to set up a Gold-calf worship statue and parade it around for the faithful.

Another seems to think BigBoy Burgers had something to do with the statue’s origin:

As long as the bible is in play one twitter user pointed out the obvious sins of the clown-father:

On a more somber note:


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Breaking: Biden orders US air strikes in Syria Against Iranian backed Militia

Above: Photo / Unsplash

A site in Syria was struck by the US military. The site was used by militia groups backed by Iran. This follows reported rocket attacks against American forces in the area, CNN reports, citing source as a “US official.

This was the first known military action since the inauguration of President Joe Biden. Though the site that was hit had no known direct involvement in the rocket attacks, but Shia militias operating in the area, and backed by Iran were believed to have used the facilities.

According to Pentagon spokesman John Kirby the stakes were carried out “at President Biden’s direction” and were not just authorized in response to recent attacks on American and coalition forces, but to deal with “ongoing threats to those personnel.”

Kirby said that Biden conducted the strikes after consulting with US allies, including coalition partners.

On Monday, State Department spokesman Ned Price said “We have stated before that we will hold Iran responsible for the actions of its proxies that attack Americans,” and that “many of these attacks have used Iranian made, Iranian supplied weapons.”

Statement from Pentagon press Secretary:

https://twitter.com/wwjoehd/status/1365099441816887297?s=20

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Trump is Guilty of High Crimes but 43 vote to Acquit

Opinion and observation:

The meaning of this ongoing assault on the truth

One thing that was unavoidable during this unprecedented 2nd impeachment process was the sense that the facts and evidence of a heinous series of crimes left any sane individual utterly devoid of any doubt that Trump was guilty. And yet, in the face of so many facts and so many public acts, a minority of 43 Republicans voted to acquit and stood up to say, with that vote, that they do not care about the law, the constitution or even this country.

Read more: Trump’s Best Impeachment Defense: ‘I’m a Buffoon and it was all a Joke’

What that means going forward is only clear in a few, but very important, respects. It is clear that the majority in this country – demonstrably sane Republicans like the seven that did vote to convict, and the roughly 259 million that do not support Trump’s insanity – will have to continue to fight for what they believe in – even if opinions are diverse, and fight as much as necessary for the basic understanding that we will never follow a wannabe dictator and criminal.

Again, what is clearer today than before the trial, is that the forces that propelled Trump into power and, even to this day, seek to maintain some kind of grip on the poison political tribalism he stands for, will attempt to use it to regain power again and try to use it to terrorize the rest of us.

Read more: Georgia initiates Criminal Investigation into Trump’s call

No muddy waters, no reasonable doubt, just complicit co-conspirators

The inescapable takeaway from the entire fiasco of the so-called “Trump-era” is that, without some kind of active and confrontational prevention from those that believe in democracy and democratic values, there will be a continue to be a force from the far right that will fill any void and seek to destroy this country and potentially the world.

Because, in the end, political disagreements over tax policy, immigration, and so many other admittedly important concerns, it is the pro-oil, anti-environmental, climate change-denying racist and corrupt evil that must be prevented, from this moment forward, from ever wielding power in this country again.

There is no reconciliation with a coalition that seeks to destroy the world in the name of religious fantasies and lust for a racist reckoning or misanthropic judgement day.

No Justice, no Peace

The future will, quite simply, not exist if neanderthal bigots (sorry neanderthals, you deserve better) with zero moral consciousness are permitted any say in government. This is not a political disagreement or lack of consensus. This is dangerous criminal terrorist elements that believe they have the right to decide the future of this country for all of us, against any person that holds views that would prevent Trump or any person with his destructive and worthless character.

Trump’s hyperbolic call to arms: “If you don’t fight, you won’t have a country” is, in reality, some kind of perverse projection, as it is us, those that have been terrorized by this malignant clown, that must listen and realize that he is right, not about the duped and manipulated followers he was lying to, but about us: we are the ones that almost lost our country.

And who should be the judge of the character of would be “leaders”? That is, and must be, we the people. If there are, in reality, 74 million people who are either brainwashed or simply ignorant enough to support a criminal like Trump, then the will of the majority, of the 259 million with the better sense not to support such a person, must be the arbiter of what is right.

The next chapter in the ugly and disgusting Trump saga will be private and legal efforts to stop him or anyone descending from his corrupt and bankrupt “cause” from re-entering the political arena.

This must not be seen as petty vengeance but as a sacred quest to protect, not only this country, but the entire world from the plague that we have all witnessed and endured other the last 5 years.

The losses must be recovered and the wrongs set right

The poisoning of the national discourse, the destruction of institutions, the loss of lives in the insurrection and the nearly half a million dead, in part, due to maladministration of the government response to the pandemic, all of this and so much more might not have happened if Trump had been stopped sooner.

There is no clearer course, and no outcome more important to prevent, than any return to the horrors that were perpetrated with this demented and dangerous man at the helm of our country.

And the proof today is in the bogus acquittal by 43 ,who share his guilt, proof of the absolute necessity to actively prevent any reemergence of his poisonous reign, or that of any acolyte that may attempt to rise carrying his diseased, corrupt mantel.


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“Blood” clip from Lincoln Project is Succinct Summation of Trump & His Enablers Crimes

The most powerful moments hit home

Though known for a tsunami of anti-trump and pro-biden campaign ads, so successful that they may have help defeat Trump last November, this clip is designed to bring out the dramatic and deadly truth of the Insurrection at the Capitol on January 6th, 2021

Beginning by calling for justice for officer Brian Sicknick, who died as a result of the Capitol riot, the clip builds to point out the simple truth that the death and destruction of that day was fomented, not only by Trump in his speech in Washington D.C. shortly before the terrorist riot, but by the incitement and lies that were so blatantly and vehemently broadcast to his followers in the weeks and months before.

The video begins with a somber statement:

“In the Capitol Rotunda, the remains of a brave man rest in a place of honor, he died a hero, and now Brian Sicknick deserves justice.”

In many ways, by the very nature of a Senate impeachment trial, somehow simple unavoidable facts seem to become unfocused in the process: That a good, heroic man died protecting democracy and those that were in the Capitol that day to try and practice it.


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Georgia initiates Criminal Investigation into Trump’s call containing alleged ‘attempts to influence’ Election

Announcement marks the 2nd state to launch cases against #45

The call from Trump and Georgia Secretary of State Brad Raffensperger will be called into question as Georgia prosecutors have initiated a criminal investigation against the former president. 

Read More: Trump Crusade against TikTok finally ended by Biden Administration

 The request comes as Trump is currently facing his second impeachment trial  on the charge of “incitement of insurrection” following attacks on the Capitol on January 6.  Trump could be heard, in the weeks following the election, claiming that the election was stolen from him, which included his loss in Georgia, where he fell short of approximately 12,000 (11,780) votes. 

Read more: Trump’s Best Impeachment Defense: “I’m a Buffoon and it was all a Joke”

To listen to full phone conversation Trump had with Georgia’s Secretary of State, The Washington Post obtained the entirety of the call. 

Documents, as well as the telephone call itself, are to be preserved as evidence, in order to further look into Trump’s attempts to overturn the election results in Georgia.  During the call with Raffensperger, Trump could be heard pressing him to “find” the votes, meaning the 11,780 needed for him to win the state. 

Trump took to Twitter at the time (his account has since been deleted) and spoke of Raffensperger, stating he “was unwilling, or unable, to answer questions such as the ‘ballots under table’ scam, ballot destruction, out of state ‘voters’, dead voters, and more. He has no clue!”

To which he responded

The letter, sent to a handful of state government officials, according to the New York Times, responsible for first reporting on the story:

“This investigation includes, but is not limited to, potential violations of Georgia law prohibiting the solicitation of election fraud, the making of false statements to state and local governmental bodies, conspiracy, racketeering, violation of oath of office and any involvement in violence or threats related to the election’s administration.”

Letter confirming Criminal Investigation As quoted in the New York Times

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Team Trump makes Accusations on Impeachment Day 4

February 12, 2021 marks the fourth day of former President Trump’s second impeachment trial.  His lawyers have the chance today to rebut the House impeachment managers’ cases for Trump’s conviction. 

The impeachment managers shared never before seen video evidence, as well as media reports and court documents demonstrating how some perpetrators believed that they were acting at the direction of Trump.

Trump’s legal team took the tack, not usual from past explanations of Trump conduct, that it was all just typical talk and nothing unusual for a speech by a “politician”. Shades of “locker room talk” and other times so many went out of their way to poo poo an outrageous statement. Only in those cases no-one died.

This was followed by standard denials and refutations.

Trump’s lawyer, Michael van der Veen gave this opening statement

“This is ordinary political rhetoric that is virtually indistinguishable from the language that has been used by people across the political spectrum for hundreds of years. Countless politicians have spoken of fighting for our principals. “

van der Veen also added “You can’t incite what was already going to happen,” 

According to NPR

“No thinking person,” van der Veen said, “could seriously believe” that the speech “was in any way an incitement to violence or insurrection,” as Democratic House impeachment managers have charged. “Nothing in the text could remotely be construed as encouraging, condoning or enticing unlawful activity of any kind.”

Reactions:

https://twitter.com/AshaRangappa_/status/1360288814464458758?s=20

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