SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
amazon.com
Warren Demands Big Tech CEOs Come Clean on Cozying Up to Trump for Corporate Tax Giveaways
Given that "American taxpayers will shoulder the burden of tax cuts" for major tech companies, she argued, "they deserve answers."
Mar 06, 2025
U.S. Sen. Elizabeth Warren this week sent letters to five Big Tech executives—including the world's three richest individuals—to sound the alarm about their "personal and financial ties to the Trump administration" and how they "may be exploiting" those relationships for billions of dollars in corporate tax breaks.
The Massachusetts Democrat's targets include Tesla CEO Elon Musk, the wealthiest person on Earth and head of President Donald Trump's Department of Government Efficiency, which is leading the administration's effort to dismantle the federal bureaucracy.
She also wrote to Mark Zuckerberg, CEO of Meta—which owns Facebook and Instagram—as well as Amazon.com founder and executive chairman Jeff Bezos. As of Thursday, they are respectively the second- and third-wealthiest people on the planet. Warren's final two letters went to Apple CEO Tim Cook and Sundar Pichai, chief executive of Alphabet, Google's parent company.
"This $75 billion windfall is only one slice of the billions of dollars that you stand to gain from Republican efforts to lower your taxes while raising costs for working families."
Warren and other Democrats on Capitol Hill are intensely critical of the Tax Cuts and Jobs Act (TCJA), which congressional Republicans passed and Trump signed in 2017. The law was largely crafted to serve rich individuals and businesses, including by slashing the corporate tax rate from 35% to 21%.
Now that the GOP has regained control of the White House and both chambers of Congress, its members are aiming to extend expiring provisions of the TCJA—funded by gutting programs for the working class.
As Warren's office noted in a Thursday statement, the TCJA ended "a corporate tax break known as research and development (R&D) expensing to help pay for their tax cuts for the ultrawealthy. This tax break allowed companies to deduct the total cost of their R&D expenses immediately, instead of deducting them over time, as is the standard practice in the tax code."
"This change was one of the few parts of the 2017 bill that forced companies to pay higher taxes," her office explained. "Now, corporations want to revert back to the pre-2017 rules—and not only do corporations want to apply immediate R&D expensing to future tax years, but they are also pushing to retroactively apply these deductions to 2022, 2023, and 2024."
Warren's letters cite a recent independent analysis by the Institute on Taxation and Economic Policy, which found that retroactive application of R&D expensing alone would slash each company's tax bill by billions of dollars—specifically, Tesla: $2.5 billion; Meta: $15 billion; Amazon: $22 billion; Apple: $10 billion; and Alphabet: $24 billion.
In other words, Warren wrote, "collectively, Alphabet, Amazon, Apple, Meta, and Tesla are projected to win $75 billion if Congress awards them retroactive R&D tax expensing—nearly double what the federal government spends on child nutrition programs each year and a fantastic return on investment for the millions you have spent lobbying on the tax fight."
"And this $75 billion windfall is only one slice of the billions of dollars that you stand to gain from Republican efforts to lower your taxes while raising costs for working families," she continued, pointing out that GOP lawmakers may "succeed in lowering the corporate tax rate even further, as President Trump has sought, or in handing out other tax giveaways to massive corporations."
Given that "American taxpayers will shoulder the burden of tax cuts" for major tech companies, "they deserve answers," argued Warren, a member of the Senate Finance Committee. She demanded responses to a list of questions by March 19.
Warren's inquiries include how much the companies are spending on lobbying for Republicans' tax legislation, and the R&D provision specifically; which trade associations, lobbying coalitions, or similar entities that they are a part of; and how much they have given, directly or indirectly, to federal elected officials who are advocating for corporate tax giveaways.
The senator also asked "exactly how much" of the retroactive tax breaks that the tech giants would put toward R&D investment and how they expect it will impact the companies' outlook for stock buybacks and executive compensation.
The potential tax law change is just one way Republican control of the federal government could benefit Big Tech. As the watchdog Public Citizen highlighted Tuesday, Amazon, Apple, Google, Meta, and Tesla are among dozens of companies with ties to the Trump administration that could benefit from its efforts to end corporate probes and enforcement actions.
Keep ReadingShow Less
Fueled by Anger at Trump and Corporate Greed, Economic Blackout Underway
"We have the power," said one supporter of the boycott. "We don't have to accept corporate monopolies. We don't have to live with corporate money corrupting our politics."
Feb 28, 2025
After hundreds of thousands of social media users in recent days shared posts calling for an economic blackout at major retail corporations on February 28, the boycott was underway Friday, with proponents saying the aim was to deliver a message about widespread anger over corporate greed "to corporate America directly."
"We have the power. We don't have to accept corporate monopolies. We don't have to live with corporate money corrupting our politics," said former Labor Secretary Robert Reich. "We don't have to accept more tax cuts for billionaires. We don't have to pay more of our hard-earned cash to Elon Musk or Jeff Bezos or Mark Zuckerberg or the other billionaire oligarchs."
The idea of the blackout originated with a self-described "mindfulness and meditation facilitator," John Schwartz, who urged consumers to join the push for "systemic change," emphasizing that the boycott was not targeting President Donald Trump, his billionaire adviser and benefactor Elon Musk, or a political party, as both Democratic and Republican leaders "have manipulated the economy and profited off the working class."
But Schwartz noted on his website for The People's Union USA, "a grassroots movement dedicated to economic resistance, government accountability, and corporate reform," that the group stands "firmly for equality and freedom for ALL people, regardless of race, gender, background, or identity. The idea that companies and institutions should abandon diversity and inclusivity is regressive and unacceptable."
The statement was an apparent reference to Trump's executive order threatening to open investigations into companies that do not dismantle initiatives aimed at promoting "diversity, equity, and inclusion" (DEI). The order—and the decision by some companies including Target, Walmart, Amazon to roll back DEI programs—has been named by some participants in Friday's economic blackout as a reason to withhold their spending from the corporations.
"We don't have to reward corporations that have abandoned their DEI policies to align themselves with Trump's racist, homophobic, misogynistic agenda," said Reich. "We have choices."
"It is promising that people are responding to the current moment by showing their distrust of these corporations."
Schwartz's posts about the blackout on social media went viral in recent weeks, with 700,000 people sharing his Instagram post and the content generating 8.5 million total views.
The boycott has gained the attention of celebrities with wide followings including actor Mark Ruffalo and author Stephen King.
While one marketing expert, Anna Tuchman of Northwestern University's Kellogg School of Management, toldThe Associated Press that the boycott was unlikely to lead to "long-run sustained decreases in economic activity" that would impact the financial bottom line of Amazon, Target, Walmart, and other affected companies, she noted that the blackout could make an impact on daily sales.
"I think this is an opportunity for consumers to show that they have a voice on a single day," said Tuchman.
Based on information from a data company called Placer.ai, the one-day blackout is likely not the only action many shoppers have been taking.
During the week of February 10, according to the company, which uses phone location date to track visits to stores, foot traffic dropped at Target stores by 7.9% and at Walmart by 4.8%, while it increased by 4.8% at Costco locations; Costco has defended its DEI policies under the Trump administration.
Joseph Feldman of financial research firm Telsey Advisory Group told clients that recent data "shows a clear drop in traffic in late January into mid-February following [one] company's step back from DEI."
According to Schwartz's website, more economic blackouts—both wide-scale and those targeting specific corporations—are being planned for the coming weeks.
The People's Union USA called for an Amazon blackout, including Whole Foods, during the week of March 7; a boycott of Nestlé to protest water exploitation and child labor during the week of March 21; and 24-hour economic blackouts on March 28 and April 18.
In a separate push, labor unions led by the United Auto Workers have already begun preparing for a general strike on May 1, 2028—International Solidarity Day.
Friday's blackout comes on the heels of news that consumer confidence plummeted in February, likely leading some corporations to already have felt the impact of fewer shoppers. Analysts linked the drop in consumer spending to anxiety stemming from Trump's mass firing of federal workers and his threatened tariffs on imports from the European Union, Canada, and Mexico.
The video posted by Schwartz on Instagram recently rallied consumers by telling them that "corporations profit off of our labor while keeping wages low, banks steal billions through inflation and predatory policies, politicians accept bribes disguised as donations while ignoring the people."
"They have taken everything from us while convincing us we should be grateful of the scraps," said Schwartz. "And that ends now."
With enthusiasm and media coverage of the blackout spreading in recent days, Aaron Vansintjan, co-author of The Future Is Degrowth: A Guide to a World Beyond Capitalism, toldThe Intercept that "people are getting a sense that they're ripped off, that they're being taken advantage of and exploited as consumers."
"It is promising that people are responding to the current moment by showing their distrust of these corporations," said Vansintjan, whose book calls for reducing consumption and production of fossil fuels, factory-farmed meat products, and other goods that harm the planet.
Vansintjan noted that consumers have power that is more limited than that of unionized workers and tenants, who can organize for fair wages, working conditions, and rent prices.
"It's hard to have an impact where you shop, because most of us don't actually have much of a choice in that," Vansintjan said.
Schwartz toldThe Washington Post: "We are the economy. We are the workforce."
Corporate retailers, he said, "benefit only because we get up every day and do what we do. If we stop, they have nothing, and it's time for them to accept that truth."
Keep ReadingShow Less
Boycott Major Retailers to Show Them We Have the Power
If politicians won’t hear the voices of average Americans who are being shafted by corporate America, we have to deliver our message to corporate America directly.
Feb 28, 2025
A grassroots movement is calling on all Americans to abstain from shopping with major retailers—including Amazon—today, February 28, as part of an “economic blackout.”
The purpose is to send a clear message: We have the power. We don’t have to accept corporate monopolies. We don’t have to live with corporate money corrupting our politics.
We don’t have to accept more tax cuts for billionaires. We don’t have to pay more of our hard-earned cash to Elon Musk or Jeff Bezos or Mark Zuckerberg or the other billionaire oligarchs.
Consider this a test run. If lots of people participate, I’m sure a longer one will be organized.
We don’t have to reward corporations that have abandoned their DEI policies to align themselves with President Donald Trump’s racist, homophobic, misogynistic agenda.
We have choices.
Most Americans are struggling to keep up. Most live from paycheck to paycheck. Most can barely afford housing costs, food prices, and pharmaceuticals—kept high by monopolies, and fueled by private equity.
If politicians won’t hear the voices of average Americans who are being shafted by corporate America, we have to deliver our message to corporate America directly.
From midnight February 28 to midnight March 1, please: No Amazon, no Walmart, no Best Buy, no Target, no Disney, no Google, no Facebook. Don’t spend on fast food, major retailers, or gas.
Avoid using credit or debit cards to make nonessential purchases.
Buy essentials such as medicine, food, and emergency supplies, of course, but make those purchases at small, local businesses.
Consider this a test run. If lots of people participate, I’m sure a longer one will be organized.
(Today’s economic blackout is an initiative of The People’s Union USA, which describes itself as a “grassroots movement dedicated to economic resistance, government accountability, and corporate reform.”)
Keep ReadingShow Less
Most Popular