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Previously we've seen "The Secret IRS Files" from Propublica as well as other coverage of tax avoidance that never resulted in tax evasion charges. Coverage wide enough that it's arguably safe to assume that no laws were broken because there was quite the demand for an enforcement response.
The funny thing is that a more accurate title for these pieces would be, "Federal Government Allows [tax-paying entity] a Massive Tax Break." And then the piece would be all about how the senate, congress, and president either explicitly wanted there to be this extreme tax loophole or was incompetent and allowed something they didn't mean to allow.
Folks are continually getting upset and riled up about players in the economic system instead of who and what makes the rules.
An analogous example: everyone got cranky about Martin Shkreli, mostly because he raised prices on Deraprim, although also because many would label him a brash jerk. But he went to jail for finance stuff, not raising prices. Why? Because raising prices in the way he did wasn't something the feds thought was illegal or wasn't something they thought he could be convicted of.
Folks get mad at Musk, Zuckerberg, etc... if they're doing something illegal, ok yea that makes sense. If folks are mad about actions that are legal, it makes zero sense to be mad at the actor. Be mad at the people/entities who created the legal loopholes and laws.
Public shame and malice towards individuals who violate expected norms is actually a fairly good deterrent toward would-be bad actors. I'm sure there are many millions of instances per day where people decide not to do untoward things because they care about their reputations.
But on the flip side, you are also correct. It's important that public attention also be directed towards the systems that incentivize and enable bad behavior, and the people who create those systems. Patching laws, shaping incentives, and empowering a distributed system of judges and courts to handle violations is ultimately much cleaner, fairer, predictable, wide-reaching, and (therefore) more effective than disorganized mob-led shame campaigns.
Unfortunately, several things work against this:
1. It requires much more time, education, intelligence, and emotional self-control to care about system design over simply shaming others. These four things aren't abundantly common in most populaces.
2. Lawmakers and politicians have their own incentives to redirect public attention away from themselves. And they can take advantage of #1 to do this, which is basically what demagoguery is.
3. Similarly, media companies have their own incentive, which is to increase clicks and shares and subscribers. And appealing to base emotions with strong headlines works 100x better than discussing complex laws and systems. Research shows that the #1 emotion that leads to sharing online is outrage.
I would say that we get the one (public outrage at specific companies/people) but not the other (focus on the legislation). Unfortunately, the latter has the controlling direct effect.
I do agree for most people. But the problem is that the worst people have no shame. People like Musk, Bezos, Zuckerberg, etc., used to try to fake humility and act like normal people, but that ship has sailed and now they seem to take glee in acting like shitbags and getting away with it. Which is why we need laws.
"If folks are mad about actions that are legal, it makes zero sense to be mad at the actor."
There are people with mindset "I will try to be an overall decent human being and maintain some awareness and empathy of others", and there are the "I will be as much of a selfish asshole as the legal system allows me to, and wreak untold damage in the endless game of whack-a-mole".
I think in fact more of us should be gunning after the second kind :). To paraphrase you, It makes zero sense for me to be OK with fundamentally anti-social, anti-humanity humanoids.
Wreaking "untold damage" sounds like something where a law should exist to prevent it unless there's some incredibly important counter benefit.
Dunno muchabout the US tax code but in the french tax code when there is a tax break there are practical conditions and an information intention / context by the legislative assembly in the law project. If french deputies create a tax break to incentivize research and you use it to get a tax break given investment in infrastructure not at all linked to any research, even if you match the practical conditions it's considered an abuse/diverting of the law and the french tax administration can completely cancel your tax break and you'll have to sue them in our administrative justice branch to change their decision.
It appears in the US that generally the letter of the law matters more in legal proceedings than the spirit of what was written. Though there is sometimes debate (especially around the constitution) as to what the words meant at the time the law was written which give a little legal freeway to the spirit. From what I have seen though these cases generally deal more with rights/civil liberties than laws which affect corporations/tax codes/processes/etc. There is greater freedom to interpret the spirit of the law in criminal cases (e.g. jury nullification).
You're claiming that legality is the necessary & sufficient condition for. Legal != Good, Right, Just, Moral, etc.
Many things are illegal, but still you'd have to be an immoral, evil asshole to do.
> The company started claiming the credit for the data centers two years ago. Since then, Meta’s savings from the credit have soared, trimming almost $4 billion off its tax bill last year, filings show.
Yeah... as a US citizen and taxpayer I think I'd like that $4 billion back.
For these companies, it's totally worth doing illegal tax shit. Even if they are forced to pay, they pay it years down the line, so the current cost of capital starts to come into play.
This is something we all do
pitchforks down, its the reporter and the non technical accountants that are wrong and both groups should be replaced
Also I’m confused, do you want a regressive tax system?
I'd guess nearly every citizen tries to pay the least amount in taxes they possibly can.
The NYT article strikes me as disguised envy: "they make more money than us, so let's demonize them for doing something we all do: minimizing our tax burden."
How many of us in this thread can afford lobbyists to bribe lawmakers to change the law to benefit ourselves?
We pay an enormous amount of dumb taxes that are simply funneled into
* government "Contractors". Aka the 1%, or the people that are golf buddies with your legistators
* wars. Which ultimately ends up in #1's pocket.
Read the full thread on Hacker News →
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