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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.
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Critics Ask If Trump and Musk Are 'Intentionally Crashing the Economy'
"If you think back at the last economic crashes... the rich were able to buy up assets on the cheap and emerged even wealthier and more powerful than before," noted one progressive commentator.
Mar 05, 2025
Are U.S. President Donald Trump, top adviser Elon Musk, and allied oligarchs deliberately trying to tank the economy in order to line their own gilded pockets?
More and more observers from both sides of the political aisle are asking the question this week as the U.S. president implemented steep tariffs on some of the country's biggest trade partners, threatened a global trade war, and is taking chainsaw to government spending and programs—policies that, while inflicting economic pain upon nearly everyone else, could dramatically boost their already stratospheric wealth.
Numerous observers have likened it to the " disaster capitalism" examined in Naomi Klein's seminal 2007 book, The Shock Doctrine: The Rise of Disaster Capitalism—politicians and plutocrats exploit the chaos of natural or human-caused crises to push through unpopular policies like privatization and deregulation that harm the masses while boosting the wealth and power of the ruling class.
Economic alarm bells were already ringing before Trump's 25% tariffs on most products from Canada and Mexico and an additional 10% on China—for a total of 20%—took effect on Tuesday, prompting retaliatory measures and threats of more to come.
Then, during his rambling joint address to Congress on Tuesday night, Trump threatened to impose reciprocal tariffs on every nation on Earth starting April 2 (because he "didn't want to be accused of April Fools' Day") if those countries did not lower barriers to trade with the United States.
@jamellebouie Replying to @C. Stetzer ♬ original sound - b-boy bouiebaisse
New York Times economic policy reporters Alan Rappeport and Ana Swanson called Trump's sweeping tariffs "one of the biggest gambles of his presidency," and a move "that risks undermining the United States economy."
But what if that's the whole point?
"I've been entertaining this theory a little bit more lately, because [Trump's] economic moves seem so stupid and terrible and counterproductive without thinking that he is intentionally trying to cause harm," progressive political commentator Krystal Ball—who also has a degree in economics and is a certified public accountant— said Tuesday on the social media site X.
Ball cited an X
post by Saikat Chakrabarti, a progressive Democrat running for Congresswoman Nancy Pelosi's (D-Calif.) House seat who worked on Wall Street for six years and helped found the online payment processing company Stripe, in which he accused Trump of "manufacturing a recession."
"But it makes sense when you realize his goal is to create something like Russia where the economy is run by a few oligarchs loyal to him," Chakrabarti added. "Creating that state is hard in a large, dynamic, powerful economy with too many actors who can oppose him. So he's accelerating concentrating money and power into the hands of his loyalists while he crashes the rest out."
Responding to this, Ball asserted that "at this point, until proven otherwise, the primary actor in the government and the economy is actually Elon, so I think it makes sense to think of Elon's incentives here and what he may actually want to accomplish."
"If you think back at the last economic crashes—both in Covid and in the 2008 financial crash—while initially everyone suffered, including the rich, out of both, the rich were able to buy up assets on the cheap and emerged even wealthier and more powerful than before," she noted.
"So in 2008, not only did they get their own custom bailout, but they were able to buy housing stock at absurdly low prices," Ball recalled. "The rich got richer than ever, inequality skyrocketed, and the big banks got bigger than ever."
"Same deal with the Covid-era recession," she continued. "So, while again, everyone suffered initially, there was a huge bailout package which, yes, did benefit ordinary people, but if you look at who came out really on top... you could see people like Elon Musk, people like Jeff Bezos, people like Mark Zuckerberg getting far wealthier. Their net worths, which were already very high, skyrocketed beyond anyone's wildest dreams."
Indeed, as Common Dreamsreported, 700 billionaires got $1.7 trillion richer during two years of pandemic. Between March 2020 and April 2022, Musk got 10 times richer, while Zuckerberg's net worth more than tripled and Bezos' grew by nearly $80 billion, according to Forbes.
"Here's the other piece that's worth thinking about as well," Ball added. "Crash and crisis leads to governments and authoritarian leaders claiming more power for themselves. They can use the crisis and the emergency as a justification for taking on extraordinary powers and for taking extraordinary measures... measures that can be custom fit to primarily benefit oligarchs like Elon Musk."
"So I don't know guys, while we're running around here going... 'can't they understand how this is going to be devastating for the economy,' maybe they do understand," she concluded, "and maybe that's kind of the point."
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Working-Class Unity Key to Defeating Oligarchy, Says Sanders in Response to Trump SOTU
"We can win. We will win," said the senator. "Let's go forward together."
Mar 05, 2025
If working-class people in the United States were wondering why President Donald Trump had "very little to say about the REAL crises facing the working class of this country" in his State of the Union address, said U.S. Sen. Bernie Sanders Tuesday night, they need look no further than the people Trump surrounded himself with at his inauguration in January.
"Standing right behind him were the three wealthiest men in the country," said the Vermont Independent senator, naming billionaire mogul and "special government employee" Elon Musk, Amazon founder Jeff Bezos, and Meta CEO Mark Zuckerberg. "And standing behind THEM were 13 other billionaires who Trump had nominated to head major government agencies. Many of these same billionaires—including Musk—were there tonight."
Despite Trump's repeated campaign promises to address the rising cost of living for working people, said Sanders, the State of the Union address offered the latest proof that "the Trump administration IS a government of the billionaire class, by the billionaire class, and for the billionaire class."
Watch Sanders' address in full:
LIVE: President Trump’s Congressional Address needs a response. Here’s mine. https://t.co/O9yN04isIw
— Bernie Sanders (@SenSanders) March 5, 2025
Sanders amplified the message he has sent on his National Tour to Fight Oligarchy—which he is scheduled to continue this week with stops in Warren, Michigan on Saturday and Kenosha, Wisconsin on Friday.
The senator called on working people of all racial identities, religions, and sexual orientations to join together to fight Trump's agenda and the billionaires who would benefit from his tax cuts, slashes to essential public services like Medicaid and food assistance, and efforts to divide people by demonizing immigrants, transgender people, and people of color.
"Yes, the oligarchs ARE enormously powerful. They have endless amounts of money. They control our economy. They own much of the media. They have enormous influence over our political system," said Sanders. "But, from the bottom of my heart, I am convinced that they can be beaten."
"If we stand together and not let them divide us up by the color of our skin or where we were born or our religion or sexual orientation; if we bring our people together around an agenda that works for the many and not the few—there is nothing in the world that can stop us," he said.
In his address, Sanders remained laser-focused on issues that impact working people—raising the federal minimum wage of just $7.25 per hour to a living wage of $17 per hour, repealing the Citizens UnitedSupreme Court ruling to end corporate influence over elections, and Trump's desire to pass a "big, beautiful" budget that would cut Medicaid by $880 billion, leaving up to 36 million Americans, including millions of children, without health insurance.
His response to the State of the Union address contrasted sharply with parts of the Democratic Party's official response given by Sen. Elissa Slotkin (D-Mich.), who spoke out against the "unprecedented giveaway" Trump wants to give "to his billionaire friends" but also signaled the party leadership's disinterest in focusing primarily on issues that impact working people when she spoke positively about former Republican President Ronald Reagan.
"After the spectacle that just took place in the Oval Office last week, Reagan must be rolling over in his grave," Slotkin said, referring to Trump and Vice President JD Vance's attacks on Ukrainian President Volodymyr Zelenskyy. "As a Cold War kid, I'm thankful it was Reagan and not Trump in office in the 1980s."
Historian Moshik Temkin wondered why the Democratic Party chose to hold up Reagan as a positive example of a president—considering his deregulatory, anti-taxation policies and promotion of so-called "trickle-down economics" that helped pave the way for rising economic inequality and the decimation of the middle class—instead of former President Franklin D. Roosevelt, who introduced Social Security, reformed the financial system, and provided relief to people who were suffering due to the 1929 stock market crash and the Great Depression.
"Who was this for?" asked historian Michael Brenes of Slotkin's address. "You don't rebuild the New Deal coalition with Cold War nostalgia and deference to Ronald Reagan. A better message: national security begins with economic security."
In contrast, Sanders' response, said former journalist and author Paul Handley, "is how you respond to Trump and define him for the American people."
Sanders ended his address by acknowledging the challenge of fighting against a political system increasingly controlled by billionaires, but warned, "despair is not an option."
"Giving up is not acceptable," said Sanders. "And none of us have the privilege of hiding under the covers. The stakes are just too high. Let us never forget. Real change only occurs when ordinary people stand up against oppression and injustice—and fight back."
"We can win. We will win," he concluded. "Let's go forward together."
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