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The Oregon Democrat also informed colleagues of his staff's findings that "senators have been kept in the dark about executive branch surveillance of Senate phones," in apparent violation of companies' contracts.
U.S. Sen. Ron Wyden shared the results of his staff's probe into major phone companies in a Wednesday letter to congressional colleagues and also publicly highlighted which carriers disclose government spying to their customers.
"An investigation by my staff revealed that until recently, senators have been kept in the dark about executive branch surveillance of Senate phones, because the three major phone carriers—AT&T, Verizon, and T-Mobile—failed to establish systems to notify offices about surveillance requests, as required by their Senate contracts," states the letter, published on Wyden's (D-Ore.) congressional website.
"While now rectified for Senate-funded lines, significant gaps remain, especially for the campaign and personal phones used by most senators. I urge your support for legislative changes to allow the sergeant at arms (SAA) to protect senators' phones and accounts from cyber threats, both foreign and domestic," he wrote. "I also urge you to consider switching your campaign and personal phone lines to other carriers that will provide notice of government surveillance."
Wyden noted that "while AT&T and Verizon only provide notice of surveillance of phone lines paid for by the Senate, T-Mobile has informed my staff that it will provide notice for senators' campaign or personal lines flagged as such by the SAA. Three other carriers—Google Fi Wireless, U.S. Mobile, and Cape—have policies of notifying all customers about government demands whenever they are allowed to do so. The latter two companies adopted these policies after outreach from my office."
In a Wednesday statement announcing the letter and the above chart, Wyden's office warned that "beyond members of Congress, journalists, political activists, people seeking reproductive healthcare, and other law-abiding Americans who could be targeted by the government all have reason to be concerned about secret surveillance of their communications and location data."
The findings of his staff include details relevant to every American with a cellphone, but much of Wyden's letter is focused on improving protections for lawmakers. He pointed to "two troubling incidents" that "highlight the vulnerability of Senate communications" to foreign adversaries and U.S. law enforcement: Chinese Salt Typhoon hackers and the U.S. Department of Justice, during the first Trump administration, both collected records of lawmakers and their staff.
"Executive branch surveillance poses a significant threat to the Senate's independence and the foundational principle of separation of powers," Wyden argued. "If law enforcement officials, whether at the federal, state, or even local level, can secretly obtain senators' location data or call histories, our ability to perform our constitutional duties is severely threatened."
"This kind of unchecked surveillance can chill critical oversight activities, undermine confidential communications essential for legislative deliberations, and ultimately erode the legislative branch's co-equal status," he continued. Wyden called on senators to support his proposals for the next annual appropriations bill "that would allow the SAA to protect senators' phones and accounts—whether official, campaign, or personal—against cyber threats, just as we have for executive branch employees."
The longtime privacy advocate's letter to fellow senators was first reported by Politico, which noted that T-Mobile did not immediately respond to requests for comment while spokespeople for AT&T and Verizon defended their companies.
"We are complying with our obligations to the Senate sergeant at arms," AT&T spokesperson Alex Byers said in a statement to the outlet. "We have received no legal demands regarding Senate offices under the current contract, which began last June."
Verizon spokesperson Richard Young told Politico that "we respect the senator's view that providers should give notice to senators if we receive legal process regarding their use of their personal devices, but disagree with his policy position."
Meanwhile, Sean Vitka, executive director of Demand Progress—an advocacy group long critical of government spying on lawmakers and warrantless surveillance—said in response to the revelations from Wyden's office that "we now know that Comcast, Verizon, T-Mobile, and other phone companies have followed AT&T's unprecedented efforts to facilitate secret government surveillance of their own customers, with some even allowing the government to secretly spy on senators."
"This is a bright, red warning sign at a time when the Trump administration keeps blowing past constitutional checks on executive power and is siccing the Justice Department on elected lawmakers," Vitka added. "These companies should be shamed and ashamed until they fix this."
"These new details add up to a horrifying picture that proves the need for Congress to... enact comprehensive privacy protections for Americans before reauthorizing any spying powers," said one campaigner.
Privacy advocates on Monday renewed demands for swift congressional action on government surveillance in response to new WIRED reporting on a federally funded program through which law enforcement obtains phone records from AT&T.
"This is a long-running dragnet surveillance program in which the White House pays AT&T to provide all federal, state, local, and tribal law enforcement agencies the ability to request often-warrantless searches of trillions of domestic phone records," U.S. Sen. Ron Wyden (D-Ore.) wrote Sunday in a letter to Attorney General Merrick Garland, which WIRED obtained and published in full.
Wyden—a lead sponsor of the Government Surveillance Reform Act (GSRA), a bipartisan bill introduced earlier this month—shared some of what he has learned about the program and urged the U.S. Department of Justice (DOJ) to release information about it.
Now known as Data Analytical Services (DAS), the program was initially revealed to the public as the Hemisphere Project by The New York Times in 2013. Information collected includes caller and recipient names, phone numbers, and dates and times of calls.
Based on what officials told Wyden's staff, "all Hemisphere requests are sent to a single AT&T analyst located in Atlanta, Georgia, and... any law enforcement officer working for one of the federal, state, local, and tribal law enforcement agencies in the U.S. can contact the AT&T Hemisphere analyst directly to request they run a query, with varying authorization requirements," the letter says.
The letter also explains that "although the Hemisphere Project is paid for with federal funds, they are delivered to AT&T through an obscure grant program, enabling the program to skip an otherwise mandatory federal privacy review" by the DOJ.
Citing a document provided by the White House Office of National Drug Control Policy (ONDCP), Wyden noted that "White House funding for this program was suspended by the Obama administration in 2013, the same year the program was exposed by the press, but continued with other federal funding under a new generic sounding program name, 'Data Analytical Services.'"
"ONDCP funding for this surveillance program was quietly resumed by the Trump administration in 2017, paused again in 2021, the first year of the Biden administration, and then quietly restarted again in 2022," according to the senator.
"The public interest in an informed debate about government surveillance far outweighs the need to keep this information secret."
"I have serious concerns about the legality of this surveillance program, and the materials provided by the DOJ contain troubling information that would justifiably outrage many Americans and other members of Congress," he wrote, referencing materials the department gave his office. "While I have long defended the government's need to protect classified sources and methods, this surveillance program is not classified and its existence has already been acknowledged by the DOJ in federal court. The public interest in an informed debate about government surveillance far outweighs the need to keep this information secret."
WIRED pointed out that in addition to DAS not being subjected to a DOJ privacy review, "the White House is also exempt from the Freedom of Information Act, reducing the public's overall ability to shed light on the program."
While the White House "acknowledged an inquiry... but has yet to provide a comment," WIRED reported, AT&T spokesperson Kim Hart Jonson declined to comment, "saying only that the company is required by law to comply with a lawful subpoena."
"There is no law requiring AT&T to store decades' worth of Americans' call records for law enforcement purposes," the outlet highlighted. "Documents reviewed by WIRED show that AT&T officials have attended law enforcement conferences in Texas as recently as 2018 to train police officials on how best to utilize AT&T's voluntary, albeit revenue-generating, assistance."
Responding in a statement Monday, Demand Progress policy director Sean Vitka noted that the reporting comes as members of Congress are considering whether to reauthorize Section 702 of the Foreign Intelligence Surveillance Act (FISA), which allows warrantless surveillance targeting foreigners located outside the United States and will expire at the end of 2023.
"Hemisphere appears to be Exhibit A for mass domestic surveillance, the data broker loophole, and even parallel construction," said Vitka. "These new details add up to a horrifying picture that proves the need for Congress to close the data broker loophole and enact comprehensive privacy protections for Americans before reauthorizing any spying powers, most notably Section 702 of FISA. The fact that a White House office—one that is actively fighting FISA reform—restarted funding for Hemisphere in 2022, in spite of recent Supreme Court precedent, is scandalous."
Demand Progress is among the groups backing Wyden's recently unveiled legislation—which, as WIRED reported, would close various loopholes, "effectively rendering the DAS program, in its current form, explicitly illegal."
Elizabeth Goitein of the Brennan Center for Justice at New York University School of Law, which also endorsed the GSRA, said of the reporting: "This is exactly why Congress must pass comprehensive surveillance reform as a precondition for ANY reauthorization of FISA Section 702. The Government Surveillance Reform Act would put an end to the abuses revealed in this latest bombshell story."
Freedom of the Press Foundation also acknowledged current reauthoriztion battle, saying on social media Monday: "So the [government] used loopholes to secretly restart a mass domestic surveillance program, and some lawmakers also want to re-up FISA Section 702 without real reforms because we can 'trust' authorities not to abuse their power to go after journalists and others? No thanks."
New polling published Tuesday revealed that most U.S. voters oppose corporate donations to Republican lawmakers who tried to overturn the 2020 presidential election, with favorability ratings plummeting by an average of 40% when participants were informed of a company's financial support for backers of former President Donald Trump's "Big Lie."
"Corporations quietly resumed funding these members of Congress who voted to throw out legally cast votes in favor of party loyalty."
Data for Progress surveyed nearly 1,300 U.S. voters, finding that 57%--including 80% of Democrats, 56% of Independents, and 36% of Republicans--are against corporations funding members of Congress who voted against certifying President Joe Biden's Electoral College victory after a mob of Trump supporters stormed the U.S. Capitol on January 6, 2021.
Survey participants were first asked about their opinions of nine major corporations. Then they were queried again after being informed of the firms' campaign contributions to would-be election overturners. Each of the nine companies donated at least $50,000 directly to the reelection campaigns or leadership PACs of the 147 GOP seditionists, who have collectively raised more than $36 million in corporate donations since the January 6 attack, according to the watchdog Citizens for Responsibility and Ethics in Washington (CREW).
Data for Progress explained:
Among likely voters, without any prior context, United Parcel Service (UPS) receives a net favorability rating of +67 points, Cigna receives a net favorability rating of +22 points, Ford receives a net favorability rating of +57 points, AT&T receives a net favorability rating of +37 points, Home Depot receives a net favorability rating of +70 points, Toyota receives a net favorability rating of +67 points, American Airlines receives a net favorability rating of +39 points, Chevron receives a net favorability rating of +31 points, and Anheuser-Busch... receives a net favorability rating of +36 points.
However, once informed of these companies' support for would-be election overturners, voter favorability fell by between 28 (Cigna) and 54 points (Toyota), with an average drop of 40 points. Among voters who identified as Democrats, the average favorability drop was 78 points. For Independents it was 33 points, while Republicans registered an eight-point decline, on average.
"Many corporations, including seven of the nine that were tested in this study, initially made public statements promising to stop donating to election overturners after the insurrection. However, corporations quietly resumed funding these members of Congress who voted to throw out legally cast votes in favor of party loyalty," Data for Progress said. "Given this survey's findings, CEOs should certainly note: they face an undeniable threat to their bottom lines once consumers are made aware of their funding of fascists."
Common Dreams has reported how corporations have broken their promises to not support the 147 Republicans by donating millions of dollars to their campaigns. Last week, CREW revealed that six far-right House Republicans who allegedly requested preemptive pardons from Trump for their roles in the January 6 insurrection have received more than $100,000 in contributions from corporate and business PACs.
AT&T, one of Dallas' leading businesses, has built its reputation around serving the community and connecting family and friends. Yet on May 19, as shareholders and company leaders gathered virtually for its Annual Meeting of Stockholders, local and national activists joined together to call the company out for contradicting its own values and undermining our democracy.
As one of Texas' major companies and biggest employers, and as a company whose purpose is to connect Americans, we cannot let them disconnect us from the democracy that exists to serve the will of the people.
AT&T claims to support civic participation and racial justice through grandiose statements ("Corporate America cannot sit this one out," and "AT&T Supports Advancing Equal Justice Reforms") and shareholder resolutions, while at the same time AT&T is the number one contributor to extremist legislators introducing dangerous laws that silence us and keep us from the polls.
These lawmakers are fighting to keep structural racism, infringing upon civil rights and disenfranchising voters in hopes to divide and distract us while they block popular legislation including democracy reform and policies that will make our voices stronger. Millions of people, especially in Black and Brown communities, are blocked from exercising their constitutional rights because of restrictions on voting rights and the corroding influence of corporate money in politics.
In the Texas primary elections in March, over 24,000 mail-in ballots were rejected throughout the state, far more rejections than previous years. Voting rights activists and local elected officials say this was due to the introduction of the SB1 bill that imposed new identification requirements, silencing many eligible voters.
The future of our democracy can not and should not be in the hands of corporations and politicians who want to take us back to policies reminiscent of the Jim Crow era.
But AT&T, its CEO John Stankey, and its head of Executive and Legislative Affairs, Sr. Executive Vice President Ed Gillespie, are helping these politicians advance their anti democratic agendas by providing financial support to their campaigns.
While AT&T was donating to their campaigns, state lawmakers were pushing for (and successfully passed) dozens of anti-voting and anti-protest laws across the county since 2021. AT&T was also one of the first companies to break their commitment to ending financial contributions to the members of Congress who voted against certifying the 2020 election results.
In public statements, annual reports and filings with the SEC, AT&T pledged to advance equal justice reforms. Yet this year its Board or Directors rejected a shareholder resolution that calls on company executives to explain actions that aren't aligned with its commitment to values including gender equality and dedication to "overcoming systemic barriers and ensuring civil rights for all people." The company has contributed to politicians that pushed new voter suppression laws through, and lobbied for legislation that creates criminal penalties for peaceful protesters.
AT&T and its leadership, especially CEO John Stankey and Sr. Executive Vice President Ed Gillespie, should publicly recommit to supporting policies that expand access to the ballot box and make it easier for eligible voters to participate in our elections. AT&T needs to uphold its promise to suspend contributions to candidates who refused to certify the 2020 election results or who have publicly demonstrated their support for doing so. It also needs to stop lobbying for or giving money to state legislators who sponsor anti-protest bills.
As one of Texas' major companies and biggest employers, and as a company whose purpose is to connect Americans, we cannot let them disconnect us from the democracy that exists to serve the will of the people. AT&T, hear the clarity of this call: help us restore and protect our freedom to vote. Together, we can take a step forward to achieving a democracy that is truly representative and responsive to the American people.
Supporters of Federal Communications Commission nominee Gigi Sohn and other critics of the telecommunications industry's efforts to thwart her U.S. Senate confirmation this week called out not only those behind the smear campaign but also Democratic leaders.
"Dem leadership is nowhere to be found defending their nominee."
The digital rights group Fight for the Future tweeted late Thursday that President Joe Biden and Senate Majority Chuck Schumer (D-N.Y.) promised to restore Obama-era net neutrality rules, of which Sohn was a chief architect.
"But instead they're sitting on the sidelines while Big Telecom mounts a massive dark money-funded smear campaign against their nominee to the FCC, Gigi Sohn," Fight for the Future added. "Where's the leadership? Do what you said you would do."
Fight for the Future director Evan Greer said Thursday that "it is absolutely absurd that millions of people from across the political spectrum fought for and won net neutrality at the FCC."
Ajit Pai, who chaired the FCC during the Trump administration, "repealed it, Dems promised to restore it, and they've so far failed to do so by caving to industry pressure and slow-walking" Sohn's nomination, Greer added.
"The only reason for this is corruption. Plain and simple," she charged, adding that it is a "good time to remember that Comcast, AT&T, Verizon etc. are huge donors to Democratic leadership and candidates. They've got their hands all up in there."
The campaigner also said that while the telecom sector and others--including the Fraternal Order of Police (FOP)--attack Sohn, "Dem leadership is nowhere to be found defending their nominee."
Greer pointed to a piece that Scott Roberts, senior director of criminal justice campaigns for Color of Change, wrote for The Root last year, declaring that the FOP is "one of the largest and most powerful hate groups in the country" and "acts as the guardian, enforcer, and perpetuator" of "racist police culture."
The FOP has openly opposed Sohn, citing her "forceful advocacy of end-to-end encryption and 'user-only-access'" and claiming that her employment history, public policy stances, and social media activity "indicated serious animus towards law enforcement officers and the rule of law."
The FOP on Wednesday released polling it commissioned from Morning Consult, which asked U.S. registered voters various questions, including some about Sohn.
"In the poll, 65% of voters had no opinion on this nominee. But after seeing information and social media posts about her extreme positions on policing issues, 6 in 10 said they would be less likely to support the nomination," said FOP national president Patrick Yoes. "For those who say Ms. Sohn's nomination will impact their vote in the Senate's midterm elections, 60% say they are more likely to vote for a Republican candidate--which is very significant in states like Arizona, Colorado, Georgia, Nevada, and Washington."
Critics framed the FOP polling as part of the ongoing efforts to tank Sohn's nomination.
"The smear campaign against [Sohn] has been beyond ridiculous," said Techdirt founder Mike Masnick. "Everyone who knows anything about her knows that it's pure nonsense, that she's beyond qualified, and that she will do an amazing job."
"The smear merchants are doing it *because* they know she'll do a good job," added Masnick, who was responding on Twitter to similar comments from technology writer Karl Bode.
Bode had tweeted of the FOP polling that "this is part of a manufactured smear campaign being run by AT&T and Comcast against a highly qualified and extremely popular FCC nominee literally everyone in the telecom/media space knows would be great on telecom monopolization, broadband affordability, and media consolidation."
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Writing for Techdirt on Friday, Bode blasted the FOP's "not-at-all-scientific poll" as well as the "grotesque campaign" by telecom giants to "spread harmful gibberish in a bid to either flip or provide flimsy justification" for right-wing Democratic senators opposing her nomination.
He also wrote:
The Biden team isn't faultless here either. It took the Biden administration nine months to even nominate Sohn, giving the telecom industry... ample time to galvanize opposition. Team Biden also hasn't done anything to defend Sohn publicly, or apply any meaningful pressure on the Senate confirmation voting process. Nor have Sohn's future FCC colleagues voiced any public support, despite the shamelessness of the attacks.
Which, in turn, is fairly reflective of how the federal government doesn't really take stuff like telecom monopolization and telecom consolidation seriously, especially in an era where "Big Tech" has sucked all the oxygen out of the D.C. policy room. And again, this is all occurring in an era when D.C. pretends to be interested in "bipartisan antitrust reform," revealing the hollowness of the gambit.
In a series of tweets Friday, Bode warned that "it is going to be an EXTREMELY long and painful decade if Democratic strategists don't start pulling their heads out of their asses and start displaying something vaguely resembling urgency, passion, and creativity."
"The phony appeal of authoritarianism can only be defeated if the [Democratic National Committee] shakes off corruption and truly represents the public interest," Bode added. "You don't accomplish this by letting a hugely popular media and telecom reformer drown under unopposed GOP/telecom propaganda attacks."
Consumer rights defenders are warning that telecom companies and lobbyists are taking advantage of the U.S. Senate's delay in confirming Gigi Sohn to the Federal Communications Commission by spending hundreds of thousands of dollars to pressure corporate Democrats to vote against the longtime public advocate.
"There's an unseemly amount of money being spent to promote disinformation about her," Greg Guice, director of government affairs for Public Knowledge, the group founded by Sohn, told MarketWatch this week. "These criticisms aren't based in fact whatsoever."
"Sohn's so popular, and the goals of telecom monopolies (less competition, more revenue, no oversight) are so viciously unpopular, they've been forced to fabricate flimsy complaints and funnel them through proxy organizations in a bid to derail the popular nomination."
As Karl Bode wrote at Techdirt last week, former Democratic Sen. Heidi Heitkamp's rural-focused non-profit group recently launched a $250,000 social media ad campaign targeting at least two Democrats who have not yet confirmed how they plan to vote on Sohn's confirmation, even though it would give the party three of the five FCC seats for the first time in six years and would end the current deadlock.
The group's ads are aimed at Sens. Catherine Cortez Masto (D-Nev.) and Mark Kelly (D-Ariz.), neither of whom have indicated how they will vote on Sohn's nomination and both of whom are facing reelection campaigns in November. Politico has reported that Heitkamp is also running ads in West Virginia, where right-wing Democratic Sen. Joe Manchin was "undecided" on Sohn after meeting her.
Heitkamp's group, the One Country Project, is claiming that Sohn has been insufficiently committed to improving broadband access in rural communities, pointing to congressional testimony in which she said Congress has been "disproportionately focused on broadband deployment in rural areas."
As Chris Matthews wrote at MarketWatch, Sohn's testimony didn't "argue that the federal government shouldn't fund broadband deployment, but that the main hurdle for Americans accessing broadband in both rural and urban areas is affordability, not infrastructure."
Heitkamp used "leftover campaign cash" to start One Country Project, Matthews noted, and counted AT&T and Comcast as two of her biggest donors when she was in the Senate.
"Telecom monopolies are now terrified that the Sohn appointment won't just break 2-2 commissioner gridlock (they created) at the agency, it will mean the restoration of meaningful federal oversight over one of the least popular and least competitive industries in the Internet ecosystem," wrote Bode at Techdirt.
Andrew Lokay, an analyst with independent policy research firm Beacon Policy Advisors, told MarketWatch that opponents of Sohn in the telecom industry appear to be "taking advantage of Biden's delay in nominating Sohn and the crowded Senate calendar in an attempt to sink her nomination."
Craig Aaron, president of media and technology advocacy group Free Press, accused the telecom industry and its allies of waging a "dishonest astroturf campaign" against Sohn and called the effort to derail the nomination of a strong net neutrality defender "infuriating."
In addition to One Country Project's efforts, the League of United Latin American Citizens (LULAC)--which has long partnered with AT&T--published an op-ed in the Arizona Daily Star earlier this month accusing Sohn of having a "deeply problematic track record on media diversity issues."
The group wrote that as a senior staffer at the FCC, Sohn "masterminded a plan to give Google a government permission slip to steal, repackage and monetize TV programming without paying one cent to its creators"--a move which angered "diverse creators" and lawmakers over "how her proposal would impact vulnerable, underrepresented communities."
In fact, Bode wrote, "the FCC's goal was to kill the cable box monopoly and save consumers about $20 billion annually in bullshit rental fees," adding that "framing it as a handout to 'big tech' is an intentional misrepresentation."
LULAC denied to MarketWatch that its opposition to Sohn has anything to do with its relationship with AT&T, and the company said it has not donated any money directly to One Country Project.
But as Bode argued, "Sohn's so popular, and the goals of telecom monopolies (less competition, more revenue, no oversight) are so viciously unpopular, they've been forced to fabricate flimsy complaints and funnel them through proxy organizations in a bid to derail the popular nomination."
"If Sohn's nomination is scuttled, it will come at the hands of Senators Joe Manchin, Catherine Cortez Masto, Kyrsten Sinema (D-Ariz.), or Mark Kelly, who will, not coincidentally, parrot the false justifications for opposing Sohn's nomination concocted by the telecom lobby," Bode added.
"It will leave a permanent and violent scar on the political and policy landscape," he added, "loudly advertising once again that the voice of the public (which overwhelmingly supports holding telecom and media giants meaningfully accountable) simply doesn't matter in our purported democracy."
In a year when many U.S corporations enjoyed record-breaking profits, some of the wealthiest companies in the nation paid little-to-no taxes according to a new analysis--or even accepted tax refunds--while working Americans continued paying their normal tax rates and faced rising prices for essentials.
"These are some of the largest companies in the world, pulling in billions of profits; yet none will owe a cent in federal income taxes."
That's according to a Center for American Progress (CAP) analysis released Tuesday that found 19 Fortune 100 companies paid effective tax rates in the single digits, if they paid anything at all.
The highest-earning Fortune 100 company, JPMorgan Chase, reported pre-tax earnings of $48.2 billion in 2021, but paid less than 6% in federal taxes despite an official corporate tax rate of 21%.
Amazon.com, which earned $35.1 billion in the U.S. in 2021, paid only 6.1% in federal taxes--all while its growth in profits over the past two years outpaced the wages the company paid its 1.1 million U.S. workers and while the company spent more than $4 million on union-busting to fend off organizing efforts at its warehouses.
"Corporations are looting America," said former Labor Secretary Robert Reich in response to CAP's report.
As Reich noted, CAP's analysis showed that four Fortune 100 companies--AT&T, Charter Communications, American International Group (AIG), and Dow--will receive an income tax benefit, or refund, instead of paying taxes for 2021.
After earning $29.6 billion in 2021, AT&T reported a tax refund of $1.2 billion. Charter Communications reported a refund of $12 million after earning $6 billion, AIG will receive $216 million from the federal government despite $9.8 billion in earnings, and Dow will receive $46 million after earning $1.5 billion.
"These are some of the largest companies in the world, pulling in billions of profits; yet none will owe a cent in federal income taxes," wrote Ryan Koronowski, Jessica Vela, Zahir Rasheed, and Seth Hanlon at CAP. "As their investor filings show, many corporations pay a much lower actual--or 'effective'--rate on their profits because of the many ways they can reduce their taxable income under the current tax system. The low tax rates for these companies worsen an already unjust increase in inequality."
Of the Fortune 100 companies that actually paid taxes in CAP's analysis, UPS paid the highest tax rate at just 9.9%--still well below the tax rate established by President Donald Trump's so-called Tax Cuts and Jobs Act of 2017 (TCJA). General Motors paid the lowest tax rate, paying 0.2% in federal taxes on $9.4 billion in earnings.
"Policymakers must act now to ensure that large, profitable corporations pay their fair share."
Large companies outside the Fortune 100 also managed to avoid paying taxes despite earning billions in 2021, according to the report. Software company Salesforce earned $2.7 billion but effectively paid $0 in federal income taxes, Duke Energy paid effectively no taxes on $3.7 billion in U.S. earnings, and Netflix paid an effective tax rate of just 1.1% on 5.3 billion in earnings.
"Is anyone else tired of paying more in taxes than corporations making billions of dollars?" asked political advocacy group Progress Iowa.
CAP cited two other reports showing how the wealthiest U.S. companies are avoiding taxes despite soaring profits. The financial data company FactSet collected data showing that S&P 500 corporations' four most profitable quarters happened in 2021, while the Institute for Taxation and Economic Policy (ITEP) conducted an analysis "concluding that former President Donald Trump's TCJA allowed many companies to pay $0 in taxes."
The group noted that with control of the White House and both chambers of Congress, the Democratic Party could change the status quo and ensure wealthy corporations pay their fair share in taxes, as President Joe Biden tried to last year by proposing a 15% minimum corporate tax and measures to stop corporate tax dodging as part of the Build Back Better Act.
"Polls show that raising taxes on corporations is among the most popular elements of President Biden's economic agenda," said CAP. "Policymakers must act now to ensure that large, profitable corporations pay their fair share."
A coalition of prominent rights organizations demanded Monday that AT&T and DirecTV completely sever ties with the One America News Network, a rabidly pro-Trump media outlet that the groups slammed for "spreading anti-democratic disinformation, promoting Covid-19 conspiracy theories, and fueling racism."
"One America News would not exist without AT&T's money and DirecTV's national platform."
In a letter to AT&T CEO John Stankey and DirecTV CEO Bill Morrow, the coalition points to a recent report that exposed the major role AT&T--the world's largest telecom company--played in creating and funding OANN, which the media-justice group Free Press described as a "propaganda channel."
AT&T owns a 70% stake in DirecTV, which the telecom behemoth spun off earlier this year.
"OANN has the right to air whatever content it chooses," reads the letter led by Free Press and signed by 16 other groups. "However, AT&T's support for OANN runs contrary to its public commitment to equality given OANN's role in funding and promoting anti-democratic policies as well as its track record of providing a platform for disinformation and calls for acts of violence that undermine trust in our institutions."
The coalition--which includes Color of Change, Greenpeace USA, Common Cause, and Global Project Against Hate and Extremism--argues that since its inception in 2013, OANN "has provided an open platform for purveyors of disinformation to spread dangerous and hateful messages that undermine our democracy."
"OANN is a major supporter of the Stop the Steal movement and is currently being sued by Dominion for spreading election fraud lies that claimed the 2020 election was stolen from Donald Trump," the letter states. "OANN has provided ongoing coverage of 'fraudulent' results and played a role in fomenting the Jan. 6 deadly insurrection at the U.S. Capitol. OANN is continuing to run content that spreads election disinformation and seeks to cast doubt over the results of the 2020 presidential election."
The groups go on to note that OANN "has a history of featuring false information about the pandemic, which breeds distrust in public health officials and in the efficacy of the vaccine."
"In November 2020, the OANN YouTube channel featured information about a guaranteed 'cure' for Covid which YouTube flagged as violating its Covid-specific misinformation policies. YouTube suspended the OANN channel for the violation and remarked that the 'demonetization of all OANN content will be permanent, unless the network addresses its issues.'"
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Yosef Getachew, director of the Media and Democracy Program at Common Cause, said in a statement Monday that "the harmful disinformation OANN spreads has had real-world impacts on democracy and public health, from the violent insurrection on our Capitol to the death and suffering of so many who were misinformed by the network's coverage of the pandemic."
"The harmful disinformation OANN spreads has had real-world impacts on democracy and public health."
"AT&T must be held accountable for its role in building and bankrolling OANN," Getachew added, "and DirecTV must no longer carry this dangerous disinformation network."
Citing court records, Reuters reported last month that AT&T "has been a crucial source of funds flowing into OAN, providing tens of millions of dollars in revenue."
"Ninety percent of OAN's revenue came from a contract with AT&T-owned television platforms, including satellite broadcaster DirecTV, according to 2020 sworn testimony by an OAN accountant," the outlet noted. "Without the DirecTV deal, the accountant said under oath, the network's value 'would be zero.'"
Nora Benavidez, senior counsel and director of digital justice and civil rights at Free Press, said Monday that "AT&T helped conceive, finance, and provide a megaphone for Donald Trump's big lie."
"One America News would not exist without AT&T's money and DirecTV's national platform," said Benavidez. "It wouldn't have been able to mislead millions with dangerous, hateful, and dishonest messages that undermine our democracy and threaten our diverse communities."
"These two media giants continue to spout talking points about race equity while supporting a network that's given a national stage to white supremacists and promoted lies about public health," she added. "We're calling on AT&T CEO John Stankey and DirecTV CEO Bill Morrow to account for their hypocrisy and are urging both of their companies to cut all ties with One America News."
A report linking AT&T, one of the US's most powerful telecommunications corporations, to the far-right One American News Network has been presented as a "bombshell" revelation (Daily Beast, 10/6/21; Poynter, 10/7/21; Guardian, 10/7/21) about the connection between big capital and Trumpian populism. The question is: Should it be so surprising?

Reuters (10/6/21) documented the symbiotic relationship between one of the US's most toxic far-right news outlets and its largest telecom company.
The first segment of the investigation by Reuters (10/6/21) found that "AT&T has been a crucial source of funds flowing into OAN, providing tens of millions of dollars in revenue," and that 90% of "OAN's revenue came from a contract with AT&T-owned television platforms." The second segment (10/7/21) focuses on the network's founder, Robert Herring Sr.
It's a remarkable piece of investigative business journalism by John Shiffman, scrutinizing documents that might have otherwise stayed in the shadows. According to a 2019 deposition obtained by Reuters, Herring said that the idea for OAN came from AT&T executives in 2013. Herring said "they wanted a conservative network" because "they only had one, which was Fox, and they had seven others on the other side." (Reuters glosses "other side" as meaning "left-wing," a label that does not credibly apply to any of the networks carried by AT&T's DirecTV platform.)
AT&T has tried to downplay the story, saying that it does not fund the network or control it, but as Media Matters (10/6/21) noted, that early funding gave the network a head start, and "OAN would not exist were it not for AT&T's financial support and distribution." As Reuters quoted an OAN lawyer, if the network were to "not be renewed on DirecTV, the company would go out of business tomorrow."
OAN, along with Christopher Ruddy's Newsmax, has become synonymous with Donald Trump's nationalist wing of the Republican Party. It exhibits a political hyper-extremism that has led some of Trump's more ardent supporters to view Fox News, two decades ago the lone wolf of conservative TV news, as too liberal (CNN, 11/12/20; Washington Post, 12/27/20). This would come as a shock to viewers of Sean Hannity and Tucker Carlson, popular Fox hosts who still carry water for the former president and his movement. The surrealism of this shift is palpable: Both networks could easily be mistaken for parodies of a dystopian future, networks that fuse the Orwellian nature of North Korean broadcasting with American kitsch.

OAN (5/8/20) makes George Soros the face of a "population control" conspiracy.
OAN has promoted conspiracy theories about the 2020 election, Syria and much else (Daily Beast, 12/26/19). It aired a bizarre and not-too-subtly antisemitic "story linking the coronavirus to George Soros and a 'population control' plot" (CNN, 5/10/20). FAIR founder Jeff Cohen said of OAN, "I watched this channel every day in December 2020 and January, when audience spiked," through March 2021, and saw a channel "that makes Fox News sound like Democracy Now!"
Its over-the-topness has boosted the upstart's standing on the right, and gained it a sizable following, thanks in large part to promotion from Trump himself (Guardian, 6/15/19). OAN doesn't participate in Nielsen ratings, but the network claims it "pulled in its highest ratings ever in 2020," with viewership growing "by more than 40% in the fourth quarter compared to the third quarter," Reuters (12/29/20) reported. The news service quoted OAN CEO Herring claiming that according to data from "a major pay TV provider in 70 markets...OAN ranked as the No. 4 national news network with those viewers."
But the Trumpier-than-thou act also lands these networks in trouble: Dominion, which makes voting systems, sued both OAN and Fox for spreading the false accusation that the company fixed the 2020 presidential election for Joe Biden (CNBC, 8/10/21). Newsmax, the other major right-wing TV news network, had been part of the same lawsuit with OAN, but was dropped after it issued an apology to Dominion and admitted it had no evidence for its fraud claims (Forbes, 4/30/21).
How could a respectable firm like AT&T--a cornerstone of global commerce--end up in a gang like this? The revelations about AT&T and OAN puncture the myth that Trumpian populism, isolationism and extreme nationalism are isolated to the fringes of Red State America, somehow distinct and divorced from the traditional Republican base of corporate leaders, who are otherwise worldly and enjoy cozy relationships with politicians of both major parties.
AT&T is hardly a progressive company. For example, the Dallas Morning News (3/23/21) reported that AT&T sent "thousands of dollars through its PAC to Republican groups with ties to members of Congress who objected to certifying President Joe Biden's victory on January 6," even though the company had said "it would no longer contribute to those members in the days after the Capitol riot." Pro-choice activists blasted the company "for backing Texas lawmakers who sponsored the new state law that effectively outlaws abortion after six weeks" (CNBC, 10/4/21).

As a corporation, AT&T has a keen interest in tax cuts (Guardian, 3/30/21) and deregulation--priorities that mesh well with the politics pushed by far-right outlets like OAN.
Like most smart capitalist firms, AT&T gives money to both Democrats and Republicans, but has a clear preference: According to Open Secrets, in the 2020 election cycle, the company's PACs gave $165,000 to Republican Party committees, and only $60,000 to Democratic committees.
The Communications Workers of America has complained that company downsizing resulted in a reduction in wages (Fierce Wireless, 4/26/21). The Guardian (3/30/21) reported that AT&T showed "keen support for a major corporate tax cut under Donald Trump," arguing that it would spur job growth, but this year "announced permanent closures of hundreds of retail stores around the US and laid off thousands of workers."
Like most telecom firms, the company is hostile toward regulation, as it "lied about California's net neutrality law...when it claimed the law requires AT&T to stop providing 'free data' to mobile customers" (Ars Technica, 3/18/21). The American Civil Liberties Union (7/9/21) added that AT&T's privileging DirecTV for its cellular customers "is almost a pure textbook example of why net neutrality rules were put into place."
Not only had the telecom giant been a huge backer of the campaign to end the FCC's net neutrality policy, but New York state investigators found that the company was a part of a coalition that "acted to give" Trump FCC chair Ajit Pai "'cover' to repeal the broadband regulations" (New York Times, 5/6/21). AT&T "funded an effort that yielded millions of fake comments supporting" the end of net neutrality, the Times reported, adding that "about 18 million of the 22 million comments sent to the FCC during the debate over the net neutrality rules were fake, the investigation found."
Is it so shocking that a communications company with such a track record of political cynicism would grab an opportunity to get a slice of the ascendant far-right media pie? The revelations counter a well-manicured image that Trump-aligned media and his loyalists in Congress are somehow anti-establishment, a voice of the regular American rather than of the commercial elite (FAIR.org, 2/16/21).
This image doesn't hold up to scrutiny. For example, Christopher Ruddy, the CEO of Newsmax, holds a graduate degree from the London School of Economics, and has served as a fellow at Stanford University's Hoover Institution--not exactly the resume of a provincial anti-globalist. His network (8/31/21) has pushed mainstream corporate conservative media lines against labor unions.
The Federalist was founded by Ben Domenech, who despite positioning the outlet as an enemy of the Washington swamp (6/9/21) is married to Meghan McCain, the daughter of Trump-loathing late Sen. John McCain, herself a former host of the popular mainstream show The View (Variety, 9/26/21).
On the other side of the Atlantic Ocean, the parent company of the Daily Mail--a tabloid (10/28/20) that has painted Brexit as a British partner to Trumpism in a popular rebellion against the global establishment--is controlled by Jonathan Harmsworth, aka the 4th Viscount Rothermere, a literal aristocrat (Guardian, 12/18/16).
So-called right-wing populism is often cloaked in the image of anti-corporate rage--take the ongoing campaign of Sen. Josh Hawley (Stanford '02, Yale Law '06) against Silicon Valley, which paints tech giants as unrestrained enforcers of cultural liberalism (Washington Post, 8/29/19). But Trump loyalists in Congress and in the media share a common bond with traditional and mainstream conservatives and the business class. They all want to lower taxes, reduce regulations on business and curtail the power of organized labor.
AT&T saw something worthwhile in OAN, and can certainly tolerate a bit of right-wing quackery if it means having another media avenue to fight a class war against any kind of progressive economic and regulatory agenda.
Amid a flurry of criticism directed at AT&T after Reuters revealed its key role in the creation and funding of the far-right conspiracy-peddling One America News Network, a leading women's group on Thursday called on the telecommunications giant's chief executive officer to correct course or resign.
"If John Stankey is unwilling to correct this course by severing ties with OAN, firing anti-abortion extremist Ed Gillespie, and pledging to stop funding right-wing, racist, and anti-woman politicians, he should step down."
UltraViolet's ultimatum for John Stankey, CEO of world's largest communications company, came after Reuters reported that "90% of OAN's revenue came from a contract with AT&T-owned television platforms, including satellite broadcaster DirecTV, according to 2020 sworn testimony by an OAN accountant."
In a statement, Sonja Spoo, director of reproductive rights campaigns at UltraViolet, noted revelations about not only the news network but also AT&T's support for Texas lawmakers who sponsored a recently enacted abortion ban that's provoked national alarm.
"The leadership and tenure of now CEO and former COO John Stankey at AT&T is marked by his enabling of the radical, right-wing conspiracy platform One America News and the funding for anti-choice politicians behind Texas' dangerous abortion ban," she said.
Referencing the lies and conspiracy theories circulated by the news network, Spoo said that "this shameful legacy ties AT&T to the violent insurrection at the U.S. Capitol on January 6th, the spread of fatal Covid-19 misinformation, and new laws in Texas that undermine the right to vote and obstruct access to abortion care."
"If John Stankey is unwilling to correct this course by severing ties with OAN, firing anti-abortion extremist Ed Gillespie, and pledging to stop funding right-wing, racist, and anti-woman politicians," Spoo declared, "he should step down."
Gillespie joined AT&T last year as senior executive vice president of external and legislative affairs after a longtime consulting relationship with the company. Previously, he chaired the Republican National Committee and served as counselor to former President George W. Bush during his second term.
While AT&T has pushed back against the reporting, with spokesperson Jim Greer telling The Hill that "AT&T has never had a financial interest in OAN's success and does not 'fund' OAN," criticism of the company has piled up since the reporting broke Wednesday.
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"We are outraged to learn that AT&T has been funneling tens of millions of dollars into OAN since the network's inception," said NAACP president and CEO Derrick Johnson in a statement. "AT&T has as a result caused irreparable damage to our democracy. The press should inform the American public with facts, not far-right propaganda and conspiracy theories."
Johnson highlighted that Stankey has written that "our corporate value to Stand for Equality has never been more relevant, not only inside AT&T but outside, as well. It is a business imperative to champion equality, diversity, and inclusion in every aspect of our business."
The NAACP leader asserted that "for a corporation that fuels OAN, a network that continues to spread lies about the 2020 election and the January 6 insurrection, AT&T's values could not be any more performative and flat-out fake. We are sickened by these revelations."