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
meta
Alarm Bells Ring as Delaware 'Radically' Shifts More Power to Corporate Insiders
"The Delaware lawmakers that enacted S.B. 21 are lapdogs for corporations and Musk," said one expert at the Open Markets Institute.
Mar 26, 2025
While Democratic Gov. Matt Meyer declared that "Delaware is the best place in the world to incorporate your business, and Senate Bill 21 will help keep it that way," critics reiterated concerns about the corporate-friendly state legislation he signed this week.
The Delaware House of Representatives sent the Senate-approved S.B. 21 to Meyer's desk on Tuesday in a 32-7 vote, with two members absent. The Delaware Business Timesreported that the governor "arrived in Dover to sign the measure into law less than two hours after it passed," and "the bill signing was closed to the press."
The bill sailed through the Delaware General Assembly despite anti-monopoly, economic, and legal experts blasting it as a "corporate insider power grab" and accusing state legislators of choosing "billionaire insiders—like Elon Musk and Mark Zuckerberg—over pension funds, retirement savers, and other investors."
Delaware Working Families Party (WFP) political director Karl Stomberg said in a Wednesday statement that "at a time when rank-and-file Democrats across the country are begging their leaders to stand up to" President Donald Trump and Musk, his billionaire adviser, Democratic lawmakers in the state "just gave Musk a $56 billion handout."
That's a reference to Musk's 2018 compensation package for his electric vehicle maker, Tesla, which a Delaware judge ruled against, prompting the richest billionaire on Earth to ditch the state and encourage other business leaders to do the same. Fears of a potential "Dexit" led to lawmakers' frantic effort to pass S.B. 21.
"The Working Families Party has been standing up against this proposed bill for weeks now, and we recognize the need to fight back against corporate overreach in our government," said Stomberg. "WFP electeds proposed serious amendments to address our concerns with the bill that would protect the people of Delaware, but the Democrats chose to side with Musk and vote them down."
"This bill is an indictment of the failed Delaware Way, which continues to allow big corporations and the ultrawealthy like Elon Musk and Mark Zuckerberg to enrich themselves at the expense of working people," added Stomberg.
Zuckerberg is the CEO of Meta, Facebook and Instagram's parent company. CNBC recently revealed that "a day after The Wall Street Journal published its story on Meta considering a Delaware departure, Meyer, who was brand new to the job, convened an online meeting with attorneys from law firms that have represented Meta, Musk, Tesla, and others in shareholder disputes in the state, according to public records obtained by CNBC. Other attendees included members of the Delaware Legislature."
"The following day, records show, Meyer invited a second group to meet with him and new Secretary of State Charuni Patibanda-Sanchez. That invitation went to Kate Kelly, Meta's corporate secretary, and to Dan Sachs, the company's senior national director of state and local policy," according to CNBC. "The invite also went to James Honaker, an attorney with Morris Nichols, a firm that's represented Meta in federal court in Delaware, and to William Chandler, former chancellor of the Delaware Court of Chancery, who is now part of Wilson Sonsini's Delaware litigation practice."
Just weeks after those meetings, the governor urged state lawmakers to swiftly pass S.B. 21. The Lever's Luke Goldstein wrote Wednesday that "the timing of the emails obtained by CNBC reveals clear motivations driving the current law which was rushed before the Legislature last month by the new governor: to let top executives off the hook for legal liabilities."
In earlier reporting, Goldstein highlighted that "Delaware, which has long been perceived as a billionaire playground and corporate tax haven, is the incorporation home to more than 60% of all Fortune 500 companies. That means, if enacted, the wide-ranging regulatory handouts in the bill will have sweeping consequences for corporate behavior across the country."
The Lever's founder, David Sirota, on Wednesday lamented the limited attention the Delaware law is receiving, compared with a major national security breach involving several top Trump officials' unsecure group chat about war plans. As he put it, "Cannot overstate how significant this is—while the national media is focused on the D.C. drama, a group of Democrats off the radar in a tiny state just radically shifted more power to the planet's largest corporations via world-changing legislation."
Daniel Hanley, senior legal analyst at the Open Markets Institute, said Wednesday that "the Delaware lawmakers that enacted S.B. 21 are lapdogs for corporations and Musk. How this one state came to control practically all of American corporate law is a long story, but regardless, Congress can and should take the power away."
Keep ReadingShow Less
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
Human Rights Experts: Meta's Trump-Friendly Policies Could Be 'Conduit' for 'Genocide'
"Rather than learning from its reckless contributions to mass violence in countries including Myanmar and Ethiopia, Meta is instead stripping away important protections that were aimed at preventing any recurrence of such harms."
Feb 17, 2025
An expert on technology and human rights and a survivor of the Rohingya genocide warned Monday that new policies adopted by social-media giant Meta, which owns Facebook and Instagram, could incite genocidal violence in the future.
On January 7, Meta CEO Mark Zuckerberg announced changes to Meta policies that were widely interpreted as a bid to gain approval from the incoming Trump administration. These included the replacement of fact-checkers with a community notes system, relocating content moderators from California to Texas, and lifting bans on the criticisms of certain groups such as immigrants, women, and transgender individuals.
Zuckerberg touted the changes as an anti-censorship campaign, saying the company was trying to "get back to our roots around free expression" and arguing that "the recent elections also feel like a cultural tipping point toward, once again, prioritizing speech."
"With Zuckerberg and other tech CEOs lining up (literally, in the case of the recent inauguration) behind the new administration's wide-ranging attacks on human rights, Meta shareholders need to step up and hold the company's leadership to account to prevent Meta from yet again becoming a conduit for mass violence, or even genocide."
However, Pat de Brún, head of Big Tech Accountability at Amnesty International, and Maung Sawyeddollah, the founder and executive director of the Rohingya Students' Network who himself fled violence from the Myanmar military in 2017, said the change in policies would make it even more likely that Facebook or Instagram posts would inflame violence against marginalized communities around the world. While Zuckerberg's announcement initially only applied to the U.S., the company has suggested it could make similar changes internationally as well.
"Rather than learning from its reckless contributions to mass violence in countries including Myanmar and Ethiopia, Meta is instead stripping away important protections that were aimed at preventing any recurrence of such harms," de Brún and Sawyeddollah wrote on the Amnesty International website. "In enacting these changes, Meta has effectively declared an open season for hate and harassment targeting its most vulnerable and at-risk people, including trans people, migrants, and refugees."
Past research has shown that Facebook's algorithms can promote hateful, false, or racially provocative content in an attempt to increase the amount of time users spend on the site and therefore the company's profits, sometimes with devastating consequences.
One example is what happened to the Rohingya, as de Brún and Sawyeddollah explained:
We have seen the horrific consequences of Meta's recklessness before. In 2017, Myanmar security forces undertook a brutal campaign of ethnic cleansing against Rohingya Muslims. A United Nations Independent Fact-Finding Commission concluded in 2018 that Myanmar had committed genocide. In the years leading up to these attacks, Facebook had become an echo chamber of virulent anti-Rohingya hatred. The mass dissemination of dehumanizing anti-Rohingya content poured fuel on the fire of long-standing discrimination and helped to create an enabling environment for mass violence. In the absence of appropriate safeguards, Facebook's toxic algorithms intensified a storm of hatred against the Rohingya, which contributed to these atrocities. According to a report by the United Nations, Facebook was instrumental in the radicalization of local populations and the incitement of violence against the Rohingya.
In late January, Sawyeddollah—with the support of Amnesty International, the Open Society Justice Initiative, and Victim Advocates International—filed a whistleblower's complaint against Meta with the Securities and Exchange Commission (SEC) concerning Facebook's role in the Rohingya genocide.
The complaint argued that the company, then registered as Facebook, had known or at least "recklessly disregarded" since 2013 that its algorithm was encouraging the spread of anti-Rohingya hate speech and that its content moderation policies were not sufficient to address the issue. Despite this, it misrepresented the situation to both the SEC and investors in multiple filings.
Now, Sawyeddollah and de Brún are concerned that history could repeat itself unless shareholders and lawmakers take action to counter the power of the tech companies.
"With Zuckerberg and other tech CEOs lining up (literally, in the case of the recent inauguration) behind the new administration's wide-ranging attacks on human rights, Meta shareholders need to step up and hold the company's leadership to account to prevent Meta from yet again becoming a conduit for mass violence, or even genocide," they wrote. "Similarly, legislators and lawmakers in the U.S. must ensure that the SEC retains its neutrality, properly investigate legitimate complaints—such as the one we recently filed, and ensure those who abuse human rights face justice."
The human rights experts aren't the only ones concerned about Meta's new direction. Even employees are sounding the alarm.
"I really think this is a precursor for genocide," one former employee toldPlatformer when the new policies were first announced. "We've seen it happen. Real people's lives are actually going to be endangered. I'm just devastated."
Keep ReadingShow Less
Most Popular