Category Archives: News

Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media

Why Does Facebook Fail to Fix Itself? It’s Partly Humans

The question comes up over and over, with extremist material, hate speech, election meddling and privacy invasions. Why can’t Facebook just fix it?

It’s complicated, with reasons that include Facebook’s size, its business model and technical limitations, not to mention years of unchecked growth. Oh, and the element of human nature.

The latest revelation: Facebook is inadvertently creating celebratory videos using extremist content and auto-generating business pages for the likes of Islamic State and al-Qaida. The company says it is working on solutions and the problems are getting better. That is true, but critics say better is not good enough when mass shootings are being live-streamed and online mobs are spreading rumors that lead to deadly violence.

“They have been frustratingly slow in dealing with everything from child sexual abuse to terrorism, white supremacy, bullying, nonconsensual porn” and things like allowing advertisers to target categories such as “Jew hater,” simply because some users had listed the term as an “interest,” said Hany Farid, a digital forensics expert at the University of California, Berkeley.

As new problems crop up, Facebook’s formula has been to apologize and promise to make changes, sometimes also noting that it did not anticipate how malicious actors could so readily misuse its platform. More recently, the company has also emphasized just how much it is improving, both technically in its use of artificial intelligence to detect problems and in terms of focusing more money and effort on fixing them.

“After making heavy investments, we are detecting and removing terrorism content at a far higher success rate than even two years go,” Facebook said Wednesday in response to the revelations about the auto-generated pages. “We don’t claim to find everything, and we remain vigilant in our efforts against terrorist groups around the world.”

It has seen some success. In late 2016, CEO Mark Zuckerberg infamously dismissed as “pretty crazy” the idea that fake news on his service could have swayed the election. He later backtracked, and since then the company has reduced the amount of misinformation shared on its service, as measured by several independent studies.

Zuckerberg has also, by and large, avoided similar gaffes by conceding mistakes and delivering apologies to the public and to lawmakers.

‘Stuck with all this garbage’

But even as the company bats down one problem, others pop up. The reason for that might be baked into its DNA. And that’s not just because its business model relies on as many people as possible using it as much as possible, leaving behind personal details that can then be targeted by advertisers.

“Almost everything Facebook has designed has been designed for good people. People who are nice to each other, who have birthdays to celebrate, who have new puppies and generally like to treat others well,” said Siva Vaidhyanathan, director of the Center for Media and Citizenship at the University of Virginia. “Basically Facebook is made for a better species than ours. If it were made for golden retrievers, everything would be great.”

But if just 1% of the 2.4 billion people on Facebook want to do terrible things to others, that’s 24 million people.

“Every couple of weeks, we hear about Facebook knocking down troublesome pages, making promises about hiring more people, building AI and so on,” Vaidhyanathan said. “But at Facebook’s scale, none of that will matter. We are basically stuck with all this garbage.”

Chris Hughes, a co-founder of Facebook, called for a breakup of the social media giant in a Thursday op-ed. Vaidhyanathan also thinks strong government regulation could be the answer, such as laws that “limit companies’ ability to suck up all our data and use it to target advertising.”

“We really should be addressing the back end of Facebook,” he said. “That’s what you have to attack.”

France Welcomes Facebook’s Zuckerberg With Threat of New Rules

France welcomed Facebook’s Mark Zuckerberg on Friday with a threat of sweeping new regulation.

With Facebook under fire on multiple fronts, Zuckerberg is in Paris to show that his social media giant is working hard to limit violent extremism and hate speech shared online.

But a group of French regulators and experts who spent weeks inside Facebook facilities in Paris, Dublin and Barcelona say the company isn’t working hard enough.

Just before Zuckerberg met French President Emmanuel Macron in Paris, the 10 officials released a report calling for laws allowing the government to investigate and fine social networks that don’t take responsibility for the content that makes them money.

The French government wants the legislation to serve as a model for Europe-wide management of social networks. Several countries have introduced similar legislation, some tougher than what France is proposing.

To an average user, it seems like the problem is intractable. Mass shootings are live-streamed, and online mobs are spreading rumors that lead to deadly violence. Facebook is even inadvertently creating celebratory videos using extremist content and auto-generating business pages for the likes of the Islamic State group and al Qaida.

The company says it is working on solutions, and the French regulators praised Facebook for hiring more people and using artificial intelligence to track and crack down on dangerous content.

But they said Facebook didn’t provide the French officials enough information about its algorithms to judge whether they were working, and that a “lack of transparency … justifies an intervention of public authorities.”

The regulators recommended legally requiring a “duty of care” for big social networks, meaning they should moderate hate speech published on their platforms. They insist that any law should respect freedom of expression, but did not explain how Facebook should balance those responsibilities in practice.

After meeting Macron, Zuckerberg said in a Facebook post that he welcomed governments taking a more active role in drawing up regulations for the internet. He made similar remarks earlier this year but has been vague on what kind of regulation he favors.

Facebook faces “nuanced decisions” involving content that is harmful but not illegal and the French recommendations, which set guidelines for what’s considered harmful, “would create a more consistent approach across the tech industry and ensure companies are held accountable for enforcing standards against this content,” Zuckerberg said.

The regulators acknowledged that their research didn’t address violent content shared on private chat groups or encrypted apps, or on groups like 4chan or 8chan, where criminals and extremists and those concerned about privacy increasingly turn to communicate.

Facebook said Zuckerberg is in France as part of meetings around Europe to discuss future regulation of the internet. Facebook agreed to embed the French regulators as an effort to jointly develop proposals to fight online hate content.

Zuckerberg’s visit comes notably amid concern about hate speech and disinformation around this month’s European Parliament elections.

Next week, the leaders of France and New Zealand will meet tech leaders in Paris for a summit seeking to ban acts of violent extremism and terrorism from being shown online.

Facebook has faced challenges over privacy and security lapses and accusations of endangering democracy — and it came under criticism this week from its own co-founder.

Chris Hughes said in a New York Times opinion piece Thursday that it’s time to break up Facebook. He says Zuckerberg has turned Facebook into an innovation-suffocating monopoly and lamented the company’s “slow response to Russian agents, violent rhetoric and fake news.”

Your Uber Has Arrived, on Wall Street

With a ring of the opening bell, Uber began picking up passengers as a newly minted public company Friday and investors waited to bet on a service with huge potential, but a long way from turning a profit.

Shares in the ride-hailing giant were sold in an initial public offering for $45 each, raising $8.1 billion, but it will take several hours for new investors to show how much they’re interested. Officials expect trading to start around 11:30 a.m.

CEO Dara Khosrowshahi and other company officials stood on a balcony above the New York Stock Exchange and clapped as the bell rang to signal the start of the day’s trading.

The IPO price on Thursday came in at the lower end of Uber’s targeted price range of $44 to $50 per share. The caution may have been driven by escalating doubts about the ability of ride-hailing services to make money since Uber’s main rival, Lyft, went public six weeks ago.

Jitters about an intensifying U.S. trade war with China have also contributed to the caution. Stocks opened broadly lower on Wall Street after the two countries failed to reach a deal before Friday’s tariff deadline.

Even at the tamped-down price, Uber now has a market value of $82 billion — five times more than Lyft’s.

Before the opening bell, Khosrowshahi tried to manage expectations for the first day of trading.

“Today is only one day. I want this day to go great, but it’s about what we build in the next three to five years,” he said in an interview with CNBC. “And I feel plenty of pressure to build over that time frame.”

Uber, Khosrowshahi said, is dealing with a potential $12 trillion market so “it makes sense to lean forward.”

He predicted that younger generations will not want to own cars. “I think more and more you’re going to have transportation on demand services, essentially de-bundle the car. They’re going to want to push a button and get the transportation they want.”

Austin Geidt, one of Uber’s first employees, rang the opening bell. She joined the company nine years ago and is now head of strategy for the Advanced Technologies Group, working on autonomous vehicles. Over the years, she helped to lead its expansion in hundreds of new cities and countries.

Both Uber co-founders Travis Kalanick and Garrett Camp were present at the exchange but absent from the podium during the bell ringing.

A black Uber logo was hanging over exchange floor and bright green Uber Eats trucks were parked outside. Men in black T-shirts and hats with the Uber Eats logo handed out drinks and snacks on the trading floor while photos of sedans, helicopters and Jump bikes were shown on screens above.

No matter how Uber’s stock swings Friday, the IPO has to be considered a triumph for the company most closely associated with an industry that has changed the way millions of people get around. That while also transforming the way millions of more people earn a living in the gig economy.

Uber’s IPO raised another $8.1 billion as the company it tries to fend off Lyft in the U.S. and help cover the cost of giving rides to passengers at unprofitable prices. The San Francisco company already has lost about $9 billion since its inception and acknowledges it could still be years before it turns a profit.

That sobering reality is one reason that Uber fell short of reaching the $120 billion market value that many observers believed its IPO might attain.

Another factor working against Uber is the cold shoulder investors have been giving Lyft’s stock after an initial run-up. Lyft’s shares closed Thursday 23% below its April IPO price of $72.

Uber “clearly learned from its `little brother’ Lyft, and the experience it has gone through,” Wedbush Securities analysts Ygal Arounian and Daniel Ives wrote late Thursday.

Despite all that, Uber’s IPO is the biggest since Chinese e-commerce giant Alibaba Group debuted with a value of $167.6 billion in 2014.

“For the market to give you the value, you’ve either got to have a lot of profits or potential for huge growth,” said Sam Abuelsamid, principal analyst at Navigant Research.

Uber boasts growth galore. Its revenue last year surged 42% to $11.3 billion while its cars completed 5.2 billion trips around the world either giving rides to 91 million passengers or delivering food.

Uber might be even more popular if not for a series of revelations about unsavory behavior that sullied its image and resulted in the ouster of Kalanick as CEO nearly two years ago.

The self-inflicted wounds included complaints about rampant internal sexual harassment, accusations that it stole self-driving car technology, and a cover-up of a computer break-in that stole personal information about its passengers. What’s more, some Uber drivers have been accused of assaulting passengers, and one of its self-driving test vehicles struck and killed a pedestrian in Arizona last year while a backup driver was behind the wheel.

Uber hired Khosrowshahi as CEO to replace Kalanick and clean up the mess, something that analysts say has been able to do to some extent, although Lyft seized upon the scandals to gain market share.

Kalanick remains on Uber’s board and while he kept a relatively low profile on Friday, he can still savor his newfound wealth. At $45 per share, his stake in Uber will be worth $5.3 billion. Hundreds, if not thousands, of other Uber employees are expected to become millionaires in the IPO.

Meanwhile, scores of Uber drivers say they have been mistreated by the company as they work long hours and wear out their cars picking up passengers as they struggle to make ends meet. On Wednesday, some of them participated in strikes across the United States to highlight their unhappiness ahead of Uber’s IPO but barely caused a ripple. A similar strike was organized ahead of Lyft’s IPO to the same effect.

In its latest attempt to make amends, Uber disclosed Thursday that it reached a settlement with tens of thousands of drivers who alleged they had been improperly classified as contractors. The company said the settlement covering most of the 60,000 drivers making claims will cost $146 million to $170 million.

Now, Uber will focus on winning over Wall Street.

Uber may be able to avoid Lyft’s post-IPO stock decline because it has a different story to tell than just the potential for growth in ride-hailing, says Alejandro Ortiz, principal analyst with SharesPost. Uber, he said, has plans to be more than a ride-hailing company by being all things transportation to users of its app, offering deliveries, scooters, bicycles and links to other modes of transportation including public mass transit systems.

“Whether or not that pitch will work kind of remains to be seen. It’s nearly impossible to tell now,” he said. “Obviously the risk to the company now is they have a lot more shareholders that they have to convince.”

 

Trump Tweets US Plan as Tariffs on Chinese Products Kick In

U.S. President Donald Trump sent a series of tweets Friday on the escalating trade war with China, as the U.S. increased tariffs from 10% to 25% on $200 billion worth of Chinese imports that China vows to retaliate to.

“We have lost 500 Billion Dollars a year, for many years, on Crazy Trade with China. NO MORE!”

Trump went on to tweet that trade talks with China are proceeding in a “congenial manner” and “there is absolutely no need to rush” to finalize a trade agreement.

The president threatened to impose 25% tariffs on an additional $325 billion worth of Chinese goods. He noted that Washington sells Beijing about $100 billion worth of goods, and with the more than $100 billion in tariffs received, the U.S. will buy agricultural products from U.S. farmers and send them as humanitarian assistance to nations in need.

While some taxes are paid directly to the government when products are imported, these taxes, also known as customs duties, are frequently added to the price of the imported product. This means the taxes are paid by those who buy the product. In this case, it would be the American consumer.

Trump also chided China for trying to “redo” the deal at the last minute after the terms already had been set.

China said Friday it “deeply regrets” the increased tariffs and will take the “necessary countermeasures,” without giving any details.

The increases took effect as trade talks entered a second day in Washington between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin.

The negotiators ended the first day of talks aimed at saving a trade deal even as Trump said he would proceed with “very heavy tariffs” on Chinese products.”

The White House said late Thursday that U.S. Trade Representative Robert Lighthizer and Mnuchin met with Trump to discuss the ongoing talks. Following the meeting, Lighthizer and Mnuchin had a working dinner with China’s vice premier and agreed to continue discussions on Friday.

Vice Premier Liu is leading the Chinese negotiating team in talks that threatened to collapse after the Trump administration accused Beijing of backtracking.

“We were getting very close to a deal, then they started to renegotiate the deal,” said Trump earlier in the day at the White House. “It was their idea to come back” for more talks ahead of Friday’s deadline for additional tariffs.

Trump said he also received “a beautiful letter” from Chinese President Xi Jinping that expressed a sentiment of “let’s work together.” 

Trump told reporters he believes “tariffs for our country are very powerful,” and would benefit America’s economy.

Some economists, however, predict such tariffs would cut by half the rate of U.S. economic growth seen in the first quarter of this year.

​David French of the U.S. National Retail Federation said in a VOA interview “a negotiating strategy based on tariffs is the wrong direction” and expressed hope the Chinese “make substantial concessions to avert this disaster.”

Shanghai University economics professor Ding Jianping told VOA the tariffs would also adversely impact the U.S. financial markets, which have climbed to record highs. Jianping said the record performance makes the markets “most vulnerable” because they are “not supported by science and technology.” He added, “The peak created by fiscal and monetary policy is unsustainable.”

The Trump administration hopes the new tariffs will force changes in China’s trade, subsidy and intellectual property practices.

 

The two sides have been unable to reach a deal due, in part, to differences over the enforcement of an agreement and a timeline for removing the tariffs.

Trump told reporters Thursday despite the additional tariffs, he is not looking for a trade war with Beijing.

“I want to get along with China,” he said.

 

Uber, Lyft Strike Latest Attempt to Organize Gig Workers

A strike by Uber and Lyft drivers in cities across the United States this week caused barely a ripple to passengers looking to catch a ride, highlighting the challenges in launching a labor movement from scratch in an industry that is by nature decentralized.

Activists and others involved in the labor movement are still declaring it a success. It grabbed headlines, trended on Twitter and won the support of several Democrats running for president. The action was also closely watched by labor organizers, who are brainstorming about ways to build worker power in the 21st-century economy.

Drivers say they wanted to draw the attention of the public, technology investors and political leaders to their plight: low pay and a lack of basic rights on the job.

“The goal is to bring awareness to the incredible disregard for workers,” said Lyft driver Ann Glatt, who helped organize the San Francisco strike and protest outside Uber headquarters.

Starting to organize

App-based workers are thought to comprise a small fraction of the economy, but there are still millions of people making a living in gig work. Uber alone says it has nearly 4 million drivers, while Lyft has more than 1 million.

In pockets around the country, workers are starting to organize themselves, often with the help of workers’ rights groups and labor unions. In Silicon Valley, a workers’ rights group established Gig Workers Rising, which helped with Wednesday’s strike. In New York state, the AFL-CIO is pushing the Legislature to take steps to protect workers who get jobs through digital platforms. A campaign that started in Washington state this year pressured shopping service Instacart to stop counting tips toward workers’ base pay, and even won them back pay.

Among the Lyft and Uber drivers’ top issues are pay, a lack of transparency that makes it difficult to understand how much they were paid and why, and no due process when they are “deactivated,” or barred from the service.

The drivers and workers at other app-based platforms such as Instacart or food delivery service DoorDash are classified by the companies as independent contractors, leaving them without the same safeguards traditional workers receive, such as minimum wage, unemployment insurance, workers compensation and health and safety protections.

Uber settlement

Uber on Thursday disclosed ahead of its Friday IPO that it had reached an agreement to settle with tens of thousands of drivers who dispute the company’s contention that they are independent contractors. It said the payments and attorneys’ fees could reach $170 million.

Uber maintains the drivers are independent because they choose whether, when and where to provide services, are free to work for competitors and provide their own vehicles. It said it has taken steps to make drivers’ earnings more consistent and to improve working conditions, including by providing discounts on gasoline and car repairs and tuition reimbursement for some drivers.

Lyft also pushed back on the complaints, saying its drivers’ hourly earnings have increased 7% in the last two years, that on average, they earn more than $20 per hour and that three-quarters of its drivers work fewer than 10 hours per week.

Legislation push

In California, labor leaders are pushing legislation to classify many gig workers and other independent contractors as regular employees, after a state high court ruling last year.

Nicole Moore is a Lyft driver and organizer with the Los Angeles-based group Rideshare Drivers United. This week’s action came out of a strike drivers held in Los Angeles in March to protest Lyft’s IPO and a cut in Uber’s reimbursement rate from 80 cents to 60 cents per mile. Drivers after that action wanted to do more, and this week’s protest was hatched.

A core group of about 25 drivers organized it, she said, with many of the other 4,300 driver members pitching in to help.

Drivers in different cities described how they spread the word. Some spoke to fellow drivers face-to-face in driver hotspots: airport parking lots, car washes and gas stations. They reached out to driver networks in different immigrant communities and took out targeted ads on Facebook and Google.

Organizing people who don’t work in the same job location can be difficult and requires new, tech-savvy approaches, said Rachel Lauter, executive director of the Seattle-based workers’ rights group Working Washington. The group has helped organize in industries such as fast food and domestic workers, and last year started talking to workers in the gig economy about what mattered to them.

Success vs. Instacart

Their efforts galvanized this year when Instacart changed its pay model and began counting tips toward its shoppers’ base pay. The group launched a campaign using text messages, Facebook, Reddit, online petitions and other digital tools to reach out to workers and customers to let them know about the change. They encouraged customers to give only a minimal tip to send a message of protest to the company then add a tip after delivery or tip in cash. They also created online calculators to help workers understand how much Instacart was actually paying them. They held Zoom conference calls where hundreds of Instacart workers and customers called in to coordinate.

The work paid off when Instacart in February announced a number of steps “to more fairly and competitively compensate” its workers, including leaving tips out of it when they calculate how much each worker will be paid.

Mario Cilento, president of the New York State AFL-CIO, said it isn’t fair that gig platforms don’t have to pay minimum wage, payroll taxes, unemployment insurance and other expenses that traditional employers pay.

“We must get ahead of this now,” Cilento said. “We liken it to where we were with the Fair Labor Standards Act in 1938, when they came up with the eight-hour day, and child labor laws and overtime pay.” 

President Nominates Shanahan for Defense Secretary

The White House says President Donald Trump will nominate Pat Shanahan as the next secretary of defense.

Shanahan, who has served as acting secretary of defense since January, “has proven over the last several months that he is beyond qualified to lead the Department of Defense, and he will continue to do an excellent job,” White House Press Secretary Sarah Sanders tweeted Thursday.

“I am honored,” Shanahan poster on Twitter. “If confirmed by the Senate … I remain committed to modernizing the force so our remarkable Soldiers, Sailors, Airmen and Marines have everything they need to keep our military lethal and our country safe.”

Shanahan told reporters at the Pentagon that he first heard of the president’s intent to nominate him while he was at the White House earlier Thursday.

Unlike his predecessor, retired Marine Gen. Jim Mattis, who served more than 40 years in the military before taking the Pentagon’s top civilian post, Shanahan spent more than 30 years in private industry working for the Boeing aircraft manufacturing company.

Critics have raised concern about his lack of military experience and about the potential bias toward his old company, which wins many Pentagon contracts to build military technologies.

If confirmed, he would not be the first to lead the department without having served in the military. The most recent example is Ash Carter, who served as defense secretary under former President Barack Obama.

And an ethics investigation into potential bias earlier this year concluded that Shanahan did not violate ethics agreements or promote his longtime employer, according to the Defense Department inspector general.

Pentagon officials told VOA they felt that the probe’s findings had cleared the way for Shanahan’s nomination.

Poll Finds More US Support for Impeaching Trump

The number of Americans who said President Donald Trump should be impeached rose 5 percentage points since mid-April, to 45 percent, while more than half said that continued congressional probes of Trump would interfere with key government business, according to a Reuters/Ipsos poll released Thursday.

The opinion poll, conducted Monday, did not make clear whether investigation-fatigued Americans wanted House of Representatives Democrats to pull back on their probes or press forward aggressively and just get impeachment over with. 

The question is an urgent one for senior Democrats in the House, who are wrestling with whether to launch impeachment proceedings despite likely insurmountable opposition to it in the Republican-controlled Senate. 

On Thursday, House Speaker Nancy Pelosi re-emphasized that leaders of the investigative committees in the House were taking a step-by-step approach. 

​Following facts

“This is very methodical. It’s very Constitution-based,” the California Democrat said. “We won’t go any faster than the facts take us, or any slower than the facts take us.”

In addition to the 45 percent pro-impeachment figure, the Monday poll found that 42 percent of Americans said Trump should not be impeached. The rest said they had no opinion. 

In comparison, an April 18-19 survey found that 40 percent of all Americans wanted Trump impeached. 

The latest poll showed stronger support for impeachment among Democrats and independents. 

It also showed that 57 percent of adults agreed that continued investigations into Trump would interfere with important government business. That included about half of all Democrats and three-quarters of all Republicans. 

After a nearly two-year investigation by special counsel Robert Mueller of Trump and Russian interference in the 2016 U.S. election, House Democrats are pursuing multiple inquiries into Trump’s presidency, his family and his business interests. 

Trump is declining to cooperate with at least a half-dozen such inquiries, refusing to disclose his tax returns, invoking executive privilege to keep the unredacted Mueller report under wraps and filing unprecedented lawsuits to block House investigators. 

‘A circus’

“It’s becoming a circus over there” in Washington, said Fatima Alsrogy, 36, a T-shirt designer from Dallas who took the poll. “There are so many more important things the country needs to pay attention to right now.”

Alsrogy, an independent, thinks Trump should be impeached. Yet she also wishes lawmakers would do more to improve the health care system for self-employed people like her. 

“I bought my own [health] insurance on an Obamacare exchange,” she said. “It’s a huge expense, and I don’t know if Obamacare is going to be amended or taken away. It’s stressful.” 

The poll also found that 32 percent said Congress treated the Mueller report fairly, while 47 percent disagreed. 

Trump’s popularity was unchanged from a similar poll that ran last week — 39 percent of adults said they approved of Trump, while 55 percent said they disapproved. 

The Reuters/Ipsos poll was conducted online in English, throughout the United States. It gathered responses from 1,006 adults and had a credibility interval, a measure of precision, of about 4 percentage points. 

Pelosi: White House Obstructing Justice ‘Every Day’

U.S. House Speaker Nancy Pelosi on Thursday accused President Donald Trump and his administration of “every day … advertising their obstruction of justice by ignoring subpoenas” issued by opposition Democratic lawmakers for oversight of him, the White House and government agencies.

Pelosi, the leader of the Democrat-controlled House of Representatives, unleashed her verbal attack a day after the House Judiciary Committee overrode Republican opposition and voted to hold Attorney General William Barr in contempt of Congress. Lawmakers cited Barr for refusing to turn over an unredacted copy of special counsel Robert Mueller’s report on his 22-month investigation into Russian meddling in the 2016 U.S. presidential election and allegations that Trump, as president, obstructed justice by trying to thwart the probe.

Pelosi said she agreed with Congressman Jerrold Nadler, the Judiciary panel’s chairman, that the U.S. is in “a constitutional crisis,” as the stalemate continues between House Democrats and Trump, a Republican who has vowed to fight all Democratic subpoenas demanding testimony from his administration’s top officials and key documents.

Earlier in the week, Treasury Secretary Steven Mnuchin rebuffed a request by the House Ways and Means Committee for six years of Trump’s federal tax returns to examine whether he has hidden overseas investments, particularly in Russia. The committee’s chairman, Congressman Richard Neal, said he would decide by week’s end whether to subpoena the returns or file a court challenge to try to force Mnuchin to turn over the secret annual documents.

Pelosi said at a news conference that the House Democrats’ investigations “will give us the facts and the truth. This is not about Congress or any committee of Congress. It’s about the American people and their right to know, and their election that is at stake, and that a foreign government intervened in our election, and the president thinks it is a laughing matter.”

Pelosi said, “It’s appalling that this administration would not even pretend to want to protect our elections, and in fact, be an obstacle to our finding out more about how it happened, so we can prevent it from happening again.”

‘Self-impeachable’

Pelosi, however, has resisted calls by some Democrats to start impeachment proceedings against Trump.

Earlier in the week, Pelosi said, “Every single day the president is making the case. He’s becoming self-impeachable.”

But she told reporters Thursday, “Impeachment is one of the most divisive things that you can do, dividing a country, unless you really have your case with great clarity for the American people.”

With the Judiciary Committee voting to hold Barr in contempt of Congress, the full House must now consider the contempt citation. But Pelosi said she is not rushing toward a vote.

Mueller testimony

Pelosi said she is waiting to see whether Mueller testifies before Nadler’s committee about his handling of the Russia investigation.

Trump has said he does not think Mueller should testify, considering it a “redo” of the investigation. But Trump said Thursday he would leave it up to Barr.

The Trump-appointed attorney general, the country’s top law enforcement official, has said he has no objection to Mueller testifying before congressional panels.

Trump: Paperwork Started for New Tariffs on Chinese Products

U.S. and Chinese trade negotiators have ended the first of two days of talks aimed at saving a trade deal even as President Donald Trump said “We’re starting that paperwork today” for imposing new “very heavy tariffs” on Chinese products.”

The United States is set to impose an increase in tariffs from 10% to 25% on $200 billion worth of Chinese imports.

They will go into effect before Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin return to the table.

Liu He is leading the Chinese negotiating team for the talks, which threatened to collapse after the Trump administration accused Beijing of backtracking.

“We were getting very close to a deal, then they started to renegotiate the deal,” said Trump on Thursday in the Roosevelt Room of the White House. “It was their idea to come back” and resume discussion ahead of the Friday deadline for additional tariffs, the president said.

Trump said he had also received “a beautiful letter” from Xi that expressed a sentiment of “let’s work together.”

Trump told reporters that he happens “to think tariffs for our country are very powerful,” in line with a view he has been expressing that such increased punitive taxes would be good for America’s economy.

​Some economists, however, predict such tariffs would cut in half U.S. economic growth seen in the first quarter of this year.

Officials in Beijing say they have “made all necessary preparations” if Trump follows through on the pledge to impose the new set of tariffs.

Chinese Commerce Ministry spokesman Gao Feng told reporters in Beijing on Thursday that China will not bow to any pressure, and warned it has the “determination and ability to defend its own interests.” The ministry issued an earlier statement vowing to take any necessary countermeasures if the tax is implemented.

The Trump administration hopes the new tariffs will force changes in China’s trade, subsidy and intellectual property practices.

The two sides have been unable to reach a deal thanks, in part, to differences over the enforcement of an agreement and a timeline for removing the tariffs.

Trump says despite being poised to impose the additional tariffs, he is not looking for a trade war with Beijing.

“I want to get along with China,” he told reporters.

Still Most Visited Place, Orlando Had 75 Million Visitors in 2018

Orlando, Florida, had 75 million visitors last year as the theme park mecca continued to be the most visited destination in the United States

Orlando had 75 million visitors last year as the theme park mecca continued to be the most visited destination in the United States, tourism officials said Thursday.

Orlando in 2018 had 68.5 million domestic visitors, a year-to-year increase of 4.1%, and almost 6.5 million international visitors, a year-to-year increase of 5.4%.

The overall 4.2% increase over 2017 figures was slightly smaller than the previous year-to-year increase of 5%. But there was a robust return of international visitors, a segment that had softened in previous years.

The international improvement was driven by Latin American visitors, especially from Brazil and Mexico, said George Aguel, CEO of Visit Orlando, the area’s tourism marketing agency.

“When folks are thinking about what they can and can’t do, we try to market why this is a good place for them to come. We focus on the feeling you get when you come here,” Aguel said. “There really is no place in the country … where you have the ability to make a connection emotionally. We play a lot on the memories we create.”

Orlando has been in the middle of a years-long expansion of rides and hotel rooms.

Accommodation expansion is at a 20-year high. The metro area already has more than 120,000 hotel rooms, the second highest in the nation behind only Las Vegas.

Additionally, attractions at the area’s theme parks are opening at a break-neck pace.

In 2017, a new water park, Volcano Bay, opened at Universal Orlando, and a new section, Pandora-The World of Avatar, opened at Walt Disney World’s Animal Kingdom.

Last year, Disney World opened a Toy Story Land.

Disney World is opening a Star Wars-themed land in August, SeaWorld debuted a Sesame Street land this spring and Universal Orlando is opening a new Harry Potter-themed ride this summer.

“We think it will help us carry over in 2020,” Aguel said. “A lot of these things start to kick in the following year.”

Nike’s Plan for Better-Fitting Kicks: Show Us Your Feet

Nike wants to meet your feet.

The sneaker seller will launch a foot-scanning tool on its app this summer that will measure and remember the length, width and other dimensions of customers’ feet after they point a smartphone camera to their toes. The app will then tell shoppers what size to buy each of its shoes in, which Nike hopes will cut down on costly online returns as it seeks to sell more of its goods through its websites and apps. 

 

But Nike will also get something it has never had before: a flood of data on the feet of regular people, a potential goldmine for the shoemaker, which says it will use the information to improve the design of its shoes. Nike mainly relies on the feet of star athletes to build its kicks.

“Nikes will become better and better fitting shoes for you and everyone else,” said Michael Martin, who oversees Nike’s websites and apps. 

 

Nike won’t sell or share the data to other companies, Martin says. And he says shoppers don’t have to save the foot scans to their Nike accounts. But if they do, they’ll only have to scan their feet once and Nike’s apps, websites and stores will know their dimensions every time they need to buy sneakers. Workers at Nike stores will also be equipped with iPods to do the scanning, replacing those metal sizing contraptions. 

The challenging part for Nike is convincing people they need to measure their feet in the first place. Most think they already know what their shoe size is, says Brad Eckhart, who was an executive at shoe store chain Finish Line and is now a principal at retail consultancy Columbus Consulting, 

 

But Nike says it gets half a million complaints a year from customers related to fit and sizing. And it admits what many shoppers have already suspected: Each of its shoe styles fit differently, even if they are in the same size. A leather sneaker may be tighter and require a bigger size. Knit ones may be more forgiving. And shoelaces can throw everything off.

 

Shoe size is “effectively a lie,” said Martin. “And it’s a lie that we’ve perpetuated.”

Matt Powell, a sports industry analyst at NPD Group Inc., says the tool might be most valuable for people who want to run or play basketball in their sneakers, since the wrong fit can cause injury. But Powell says most people buy sneakers just to walk around in.

Still, finding the right size is a problem for shoppers: “There really is no industry standard for what is a size 10,” Powell said. 

China Mobile’s Bid to Offer US Phone Service Rejected

U.S. communications regulators are rejecting a Chinese telecom company’s application to provide service in the U.S. due to national-security risks amid an escalation in tensions between the two countries.

 

The Federal Communications Commission on Thursday voted unanimously, 5-0 across party lines, to reject China Mobile International USA Inc.’s long-ago filed application. The Commerce Department had recommended that denial last year.

 

The company, which the FCC says is ultimately owned by the Chinese government, applied in 2011 to provide international phone service in the U.S.

 

The Trump administration has been pushing against China in several ways. It has been pressuring allies to reject Chinese telecom equipment for their networks, citing security risks from Chinese telecom giant Huawei.

 

The U.S. and China are also in the middle of high-stakes trade talks.

 

 

Co-Founder Chris Hughes: Time to Break Up Facebook

Facebook co-founder Chris Hughes says it’s time to break up the social media behemoth.

He says in a New York Times opinion piece that CEO Mark Zuckerberg has allowed a relentless focus on growth to crush competitors and “sacrifice security and civility for clicks.”

Hughes says Facebook is a monopoly and should be forced to spin off WhatsApp and Instagram. He says future acquisitions should be banned for several years

Hughes roomed with Zuckerberg at Harvard and left Facebook in 2007 to campaign for Barack Obama.

He says he liquidated his Facebook shares in 2012, the year he became publisher of The New Republic.

Last year, Hughes published a book advocating a universal basic income. In 2017, Forbes put his net worth at more than $400 million.

Taxes Aren’t the Only Trouble for Trump

Reporting from The New York Times shows that between 1985 and 1994, President Donald Trump reported $1.2 billion in losses, allowing him not to pay income taxes during most of that period. While Democrats demand Trump’s tax returns, other battles are heating up. The White House is asserting executive privilege over special counsel Robert Mueller’s unredacted report, and Democrats are preparing to hold Trump’s attorney general in contempt. White House Correspondent Patsy Widakuswara has more.

Is 5G Chinese Technology a Threat to US National Security?

Earlier this month, officials from a group of 30 countries agreed to take a more coordinated approach to secure the next generation of fast mobile communication networks, known as 5G. The United States and others worry that technology companies located in countries with governments like China’s could be subject to state influence, making the networks insecure. Elizabeth Lee reports on the security concerns over 5G, and what it means to consumers.

US Lawmakers Praise Taiwan as Alternative to China

U.S. lawmakers used an event at the Capitol Wednesday afternoon to praise Taiwan as an ally and a healthy alternative to China.

Relations between Washington and Beijing have been strained because of a growing trade dispute, China’s unwillingness to democratize and the threat of the spread of its illiberal influence as it reaches more regions of the world.

Wednesday’s event marked the 40th anniversary of the enactment of the Taiwan Relations Act, which provides a framework for continuing bilateral ties after Washington established official diplomatic ties with Beijing in 1979.

​In praise of Taiwan

Some lawmakers used the occasion to praise relations between Washington and Taipei.

“We have to stick with the folks that are most like us and that we are most like, that is just how it has to be, and we should be unafraid to say it,” Congressman Scott Perry, a Republican who represents Pennsylvania, said.

“If we want to be leaders in the world and we do, we have to stick with our friends and our allies very closely and show the world who we believe in and where our allegiances lie,” Perry said. “We still want to trade with China, we still want to be good partners, however, we have a better partner.”

Perry told VOA that Taiwan is a natural partner and ally “especially compared to the government of China.” He quickly added that it is important to clarify that there’s a difference between the government of China and the people of China, “because there are many Chinese people who also agree with our values.”

Bipartisan, bicameral gathering

House Speaker Nancy Pelosi also attended the event, which she described as a “celebration of the relationship” between the United States and Taiwan.

Pelosi pointed to the congressional members who were present at the event as evidence of “bipartisan, bicameral expression and manifestation of support and recognition of the importance of the Taiwan Relations Act,” which she described as having fostered an “unshakable bond between the United States and Taiwan.”

She also spoke about how impressed she was with the “vitality of the country” on her visit to the island, adding, “I can’t wait to go back again … my understanding is, the best Chinese food in the world is in Taiwan!”

The event, co-hosted by Taiwan Causes in both the U.S. Senate and House of Representatives, drew more than two dozen senators and congressmen.

Humbled by US support

As the event concluded, Stanley Kao, Taiwan’s representative to the United States, told VOA that he was humbled by the broad show of support for Taiwan among U.S. lawmakers.

Kao said Taiwan will continue to uphold the values that endear it to the United States and other democracies around the world.

“We ourselves must zheng-qi,” he said, invoking the traditional Chinese phrase meaning “fight for and be worthy of one’s own breath.”

AP Fact Check: Trump Brings Puerto Rico Fiction to Florida

President Donald Trump brought his enduring fiction about hurricane aid for Puerto Rico to a rally crowd in Florida Wednesday.

Pledging unstinting support for more hurricane recovery money for Floridians, he vastly exaggerated how much Puerto Rico has received.

Trump laced his speech in Panama City Beach with a recitation of falsehoods that never quit, touching on veterans’ health care, the economy, visas and more. 

A sampling:

Puerto Rico hurricane aid

TRUMP: “We gave to Puerto Rico $91 billion” — and that’s more, he said, than any U.S. state or entity has received for hurricane aid.

THE FACTS: His number is wrong, as is his assertion that the U.S. territory has set some record for federal disaster aid. Congress has so far distributed only about $11 billion for Puerto Rico, not $91 billion.

He’s stuck to his figure for some time. The White House has said the estimate includes about $50 billion in expected future disaster disbursements that could span decades, along with $41 billion approved.

That $50 billion in additional money is speculative. It is based on Puerto Rico’s eligibility for federal emergency disaster funds for years ahead, involving calamities that haven’t happened.

That money would require future appropriations by Congress.

Even if correct, $91 billion would not be the most ever provided for hurricane rebuilding efforts. Hurricane Katrina in 2005 cost the U.S government more than $120 billion, the bulk of it going to Louisiana.

​Economy and income levels

TRUMP, boasting that his economic record has delivered the “highest income ever in history for the different groups — highest income.”

THE FACTS: Not so. He did not achieve the best income numbers for all the racial groups. Both African Americans and Asian Americans had higher income before the Trump administration.

The median income last year for a black household was $40,258, according to the Census Bureau. That’s below a 2000 peak of $42,348 and also statistically no better than 2016, President Barack Obama’s last year in office.

Many economists view the continued economic growth since the middle of 2009, in Obama’s first term, as the primary explanation for recent hiring and income gains. More important, there are multiple signs that the racial wealth gap is now worsening even as unemployment rates have come down.

As for Asian Americans, the median income for a typical household last year was $81,331. It was $83,182 in 2016.

Visa lottery and ‘rough people’

TRUMP, claiming countries are taking advantage of the U.S. diversity visa lottery program: “They’re giving us some rough people.”

THE FACTS: A perpetual falsehood from the president. Countries don’t nominate their citizens for the program. They don’t get to select people they’d like to get rid of.

Foreigners apply for the visas on their own. Under the program, citizens of countries named by the U.S. can bid for visas if they have enough education or work experience in desired fields. Out of that pool of qualified applicants, the State Department randomly selects a much smaller pool of tentative winners. Not all winners will have visas approved because they still must compete for a smaller number of slots by getting their applications in quickly.

Those who are ultimately offered visas still need to go through background checks, like other immigrants.

​VA Choice

TRUMP, describing how veterans used to wait weeks and months for a VA appointment: “For the veterans, we passed VA Choice. … (Now) they immediately go outside, find a good local doctor, get themselves fixed up and we pay the bill.”

THE FACTS: No, veterans still must wait for weeks for a medical appointment.

While it’s true the VA recently announced plans to expand eligibility for veterans in the Veterans Choice program, it remains limited in part because of uncertain money and longer waits.

The program currently allows veterans to see doctors outside the VA system if they must wait more than 30 days for an appointment or drive more than 40 miles to a VA facility. Under new rules to take effect in June, veterans will have that option for a private doctor if their VA wait is only 20 days (28 for specialty care) or their drive is only 30 minutes.

But the expanded Choice eligibility may do little to provide immediate help.

That’s because veterans often must wait even longer for an appointment in the private sector. In 2018, 34 percent of all VA appointments were with outside physicians, down from 36 percent in 2017. Then-Secretary David Shulkin said VA care was “often 40 percent better in terms of wait times” compared with the private sector.

Choice came into effect after some veterans died while waiting months for appointments at the Phoenix VA medical center.

When VA Choice passed

TRUMP, on the Choice program: “That’s a great thing for our veterans. They’ve been trying to get it passed for 44 years. We got it passed.”

THE FACTS: He’s incorrect. Congress approved the private-sector Veterans Choice health program in 2014 and President Barack Obama signed it into law. Trump is expanding it.

Crowd sizes

TRUMP, on Democrat Beto O’Rourke’s crowd size at a Texas rally before he launched his presidential campaign: “He had like 502 people.”

THE FACTS: Trump sells short O’Rourke’s crowd, though it has grown in his mind since he claimed the Democrat only got 200-300 at his El Paso gathering in February. Trump had a rally there the same day.

O’Rourke’s march and rally drew thousands. Police did not give an estimate, but his crowd filled nearly all of a baseball field from the stage at the infield to the edge of outfield and was tightly packed.

Official: Executive Order Not Needed to Ban Huawei in US 5G Networks

A senior U.S. State Department official said there is no need for President Donald Trump to sign an executive order to explicitly ban Chinese telecommunication company Huawei from taking part in the buildout of the U.S. 5G networks.

The four largest U.S. telecom carriers — Verizon, AT&T, T-Mobile and Sprint — have agreed not to use Huawei in any part of their 5G networks, said Ambassador Robert Strayer, deputy assistant secretary of state for cyber and international communications and information policy.

Strayer spoke with VOA about U.S. 5G policy and security concerns over Huawei. He also said the United States will only use trusted vendors, including South Korea’s Samsung, Sweden’s Ericsson and Finland’s Nokia, in the buildout of the U.S. 5G networks.

 

WATCH: Is 5G Chinese Technology a Threat to US National Security?

​The following is an edited excerpt of the interview:

VOA: VOA broadcasts to many countries in Africa and Asia. These are places eager to develop their economies with high-tech communications. What does the U.S. say to those countries, which are eager for 5G and see the most attractive equipment and financing packages for those networks are all Chinese? If countries resist the Huawei offer, how many years back does that set their 5G networks? What would be the alternatives?

Deputy Assistant Secretary Robert Strayer: All around the world, we’re all very excited to see the promise of 5G technology. It’s going to empower things like telemedicine, autonomous vehicles, autonomous manufacturing, and including autonomous transportation networks in general.

So it’s going to be very important that network be incredibly secure because of all the critical infrastructure that’s going to ride on top of it. We know that there are a number of vendors besides Chinese technology vendors that are providing the equipment, the underlying infrastructure for 5G networks.

Those include Samsung in South Korea, Ericsson in Sweden and Nokia in Finland. So we believe those are trusted vendors.

We have grave concerns about the Chinese vendors because they can be compelled by the National Intelligence Law in China as well as other laws in China to take actions that would not be in the interests of the citizens of other countries around the world. Those networks could be disrupted or their data could be taken and be used for purposes that would not be consistent with fundamental human rights in those countries.

VOA: But it’s going to be a difficult choice. China is offering a great deal, in some cases 0% interest loans, 20-year payment plans, and what are the alternative plans like? Is there an analogy that you have that can show how turning down that kind of offer for something like 5G is actually in their long-term interest?

Strayer: We think that there should be commercially reasonable terms applied to financing deals. There’s obviously private financing available from telecom companies, but there are also a number of multinational, multilateral development banks providing potential sources of financing for infrastructure deals around the world.

We don’t think that countries need to adhere to, be left with only the predatory lending terms that are often offered by the Chinese Development Bank and other financing mechanisms that the Chinese companies are offering. Zero percent interest for 20 years is not commercially reasonable. It comes with huge strings attached. In fact, many of these things aren’t even transparent enough for countries to know what they’re signing up to.

We’re encouraging countries to think carefully about how they will move into 5G, make sure that they’re applying and signing up to financing terms that are commercially reasonable and ones that they can pay back in the long term.

We know of stories, of course, of ports being used as collateral in some of these financing deals, so countries could lose access to their very critical infrastructure under the terms of some of these deals. So we think that while 5G has huge promise and we should move quickly to it, we’re not in any way slowing ourselves down by going with vendors that are more trustworthy, and under financing conditions that are probably concessionary but are not at the level of some of these deals that are in no way reasonable in any type of commercial sense.

VOA: If Washington is asking other countries to ban Huawei from their 5G networks, why hasn’t the U.S. done so? I mean, the president has not signed an executive order on a comprehensive ban on Huawei, not just in the government, but in the private sector as well. Is the U.S. credibility at stake? How certain are you that the U.S. will ban Huawei equipment from its 5G network?

Strayer: So in our view, we don’t need to have a legal mechanism to ban Huawei in our private sector networks. The four largest U.S. telecom carriers have already agreed that they will not use Huawei or ZTE in any part of their 5G networks and they’re not using it in their 4G networks. So we don’t think that we need a legal tool to force them to do so. In addition, last year in the National Defense Law that was enacted at the end of the year, the government was prohibited — our U.S. government is prohibited from using these high-risk vendors.

VOA: Chinese Vice Premier Liu He is coming to Washington this week for the latest round of trade negotiation with the U.S. There are allegations against Huawei for stealing U.S. intellectual property. How should Huawei and 5G be discussed in the bilateral trade talks? Could they be hurdles for the two nations to reach a deal?

Strayer: I just want to be very clear that everything we’re talking about with countries around the world is about a national security threat that we see facing now, and that we think could have significant economic implications for them as well.

We are not talking about this in the context of trade. And I would just mention, too, that the concerns we have about Huawei that are well-documented are related to corruption, related to the theft of intellectual property, and related to defying sanctions, and using basically money-laundering schemes, have raised great concern about that company itself, but they’re not part of our trade discussions.

VOA: Is the U.S. lagging China in developing 5G infrastructure?

Strayer: No. We think we’re leading the world. By the end of this year, we’ll have 90 trials rolled out across the United States. We’ve already seen them being rolled out by Verizon and AT&T. We think we are actually leading the world in this field and we’re using only vendors from those three countries I mentioned that are trusted vendors, not the ones in China.

VOA: Thank you for talking to VOA.

Strayer: Thank you.

US Indicts 2 Israeli Operators of Darkweb Gateway

U.S. law enforcement officials announced on Wednesday the indictment of two Israeli operators of a website that referred hundreds of thousands of users to underground internet marketplaces to purchase drugs, weapons and other illegal products.  

 

Tal Prihar, 37, an Israeli citizen living in Brazil, and Michael Phan, 34, who lives in Israel, were indicted by a federal grand jury in Western Pennsylvania with money laundering in connection with operating DeepDotWeb, a website that served as a gateway to the Darkweb, the internet’s dark underbelly where users can purchase and exchange illegal products.

 

Prihar was arrested by French authorities in Paris Monday and faces likely extradition to the U.S. Phan was arrested on Monday in Israel and faces charges there.  Prosecutors declined to say whether they’ll seek Phan’s extradition to the U.S.

 

The two Israeli nationals operated DeepDotWeb from 2013 to late last month when it was taken down by the FBI, collecting more than $15 million in commissions for directing users to various marketplaces such as the now defunct AlphaBay.

 

The users, in turn, purchases hundreds of millions of dollars worth of illegal drugs, firearms, malicious software, hacking tools, and stolen financial information and credit cards, according to prosecutors.

 

About 24 percent of all orders on AlphaBay, which was one of the largest Darkweb marketplaces before it was seized by the FBI in 2017, were associated with an account created through a referral link provided by DeepDotWeb.

 

Scott W. Brady, the U.S. attorney for Western Pennsylvania, said DeepDotWeb’s takedown represents a major blow to the Darknet economy.

 

“This is the single most significant law enforcement disruption of the Darknet to date,” Brady said at a press conference in Pittsburgh.  “While there have been successful prosecutions of various Darknet marketplaces, this prosecution is the first to attack the infrastructure supporting the Darknet itself.”

 

Darknet marketplaces operate on Tor, a computer network that facilitates anonymous communication and transactions over the internet.   Tor marketplaces can’t be found via a Google search. To access a marketplace, a user needs the site’s exact .onion url, a top level domain suffix designating an anonymous service reachable via the Tor network.

 

To address this problem, DeepDotWeb provided pages of hyperlinks to various marketplaces such as AlphaBay Market and Hansa Market, allowing users to navigate the marketplaces and collecting a commission each time a user made a purchase.

 

Trump Hails GM Plan to Invest $700 mn in Ohio, Sell Shuttered Plant

President Donald Trump said Wednesday U.S. automaker General Motors will invest $700 million in Ohio and create 450 jobs, selling one of its shuttered plants to a company that will produce electric trucks.

“GREAT NEWS FOR OHIO!” Trump tweeted.

Trump said he had talked to GM chief Mary Barra who told him of plans to sell the Lordstown, Ohio plant to Workhorse, a company that focuses on producing electric delivery vehicles.

In November, GM shuttered five U.S. plants, including auto assembly plants in Michigan and Ohio, as part of a 15 percent cut in its workforce worldwide — cutting around 14,000 employees — a move which drew Trump’s wrath on Twitter.

But in March, GM announced plans to invest $1.8 billion in U.S. operations creating 700 new jobs. About $300 million will be geared towards production of electric vehicles at the auto giant’s Orion plant in Michigan, creating 400 jobs, the company said in a statement.

“I have been working nicely with GM to get this done. Thank you to Mary B, your GREAT Governor, and Senator Rob Portman. With all the car companies coming back, and much more, THE USA IS BOOMING!” Trump said.

The U.S. president has repeatedly berated companies by name to pressure them into investing more or reversing decisions on job cuts.

 

 

 

In the US, Death Is More Certain Than Taxes

In the U.S., there’s an old saying that there are only two things that are certain in life: death and taxes.

But as it turns out, death is way more certain than taxes in the United States.

Corporations and some wealthy individuals, including President Donald Trump, are able to legally avoid any federal taxation in some years by deducting business expenses such as capital investments, charitable donations, interest on their home loans, health care costs and numerous other write-offs from their corporate or personal income.

In a report late Tuesday, The New York Times said from 1985 to 1994, Trump lost more than $1 billion in his real estate business operations and paid no federal income taxes in eight of those 10 years.

Trump called the report inaccurate but did not dispute any specific facts. He said it was “sport” for developers to game the U.S. tax code so they did not have to pay taxes.

Unlike U.S. presidents for the past four decades, Trump has balked at releasing his tax returns, although opposition Democratic lawmakers in the House of Representatives are seeking, so far unsuccessfully, to get him to divulge his returns for the last six years. A court fight over the dispute is possible.

The independent Tax Policy Center estimates that in 2018, 44% of Americans paid no federal income tax under the country’s progressive sliding scale of taxation, where those making the most money, in the hundreds of thousands of dollars, pay a higher percentage tax than those with way less annual income.

Various provisions of the U.S. tax code, such as the standard deduction to reduce taxable income or such allowable itemized deductions as for making donations to charities or for expenses to operate a business from home, can sharply reduce income subject to federal taxation.

But even those individuals not subject to any federal taxation, however, likely have paid payroll taxes, payments to cover mandatory withholding from their paychecks to fund the government’s pension plan for older and retired workers, and health insurance for Americans over 65. About three-quarters of American households pay federal income taxes, the payroll taxes or both.

The median annual U.S. household income is $56,516, meaning half earn more, half less.

According to one recent survey of nearly 130,000 American consumers, the average American spends $10,489 each year in federal, state, and local income taxes, about 14% of the average survey respondent’s gross income.

In the corporate world, however, with the tax overhaul pushed to passage by Trump and Republican lawmakers in 2017 that cut the basic federal corporate tax rate from 35% to 21%, 60 of the biggest U.S. corporations avoided paying any taxes last year, according to the Washington-based Institute on Taxation and Economic Policy.

The research group said these companies should have paid a collective $16.4 billion in federal income taxes, but instead, with various legal deductions from their income, received a net tax rebate of $4.3 billion.

It reported that among the 60 profitable U.S. corporations paying no federal income taxes last year were some of the country’s best known businesses, including General Motors, Amazon, Chevron, Netflix, Delta Air Lines, IBM, Goodyear Tire & Rubber, and Eli Lilly.

 

Trump Belittles Report He Lost More Than $1 Billion in 1980s and ’90s

U.S. President Donald Trump on Wednesday belittled a report that he lost more than $1 billion as a New York real estate mogul between 1985 and 1994, claiming it was “sport” for developers to write off such losses to legally avoid paying federal taxes.

In a pair of tweets, the president called the report in The New York Times “very old information … a highly inaccurate Fake News hit job!” but did not dispute that he avoided paying federal income taxes in eight of the 10 years in question.

“Real estate developers in the 1980’s & 1990’s, more than 30 years ago, were entitled to massive write offs and depreciation which would, if one was actively building, show losses and tax losses in almost all cases,” Trump said. “Much was non monetary. Sometimes considered “tax shelter,…” you would get it by building, or even buying. You always wanted to show losses for tax purposes….almost all real estate developers did – and often re-negotiate with banks, it was sport.”

As he ran for the presidency in 2016 and since assuming power, Trump has often portrayed himself as a successful entrepreneur worth billions of dollars. But unlike U.S. presidents for the last four decades, he has balked at voluntarily disclosing his personal federal income tax returns.

He wrote a best-selling book, “Trump: The Art of the Deal,” but the newspaper called his financial dealings three decades ago a “Decade in the Red,” and “The Art of Losing Money.”

The Times said that in the 10-year period in question Trump lost more money year after year than any other U.S. taxpayer. The newspaper did not use the actual returns for its report but instead used information provided by someone who had access to the documents.

The bulk of Trump’s losses during that period came from his core businesses, including hotels, casinos and retail space inside apartment buildings.

They also include failed investments in an airline, a professional football team and unfinished plans for real estate developments.

According to the Times, Trump was able to maintain a life of luxury all those years because most of his money came from banks and bond holders who invested in the Trump empire. Trump also relied on his father’s wealth, according to the report.

But it appears Trump did not break any federal laws because the U.S. tax code allows people to deduct substantial business losses from their income, cutting their tax bills to little or nothing.

One of the president’s lawyers, Charles Harder, told the newspaper that the tax information it used was “demonstrably false.”

“IRS (Internal Revenue Service) transcripts, particularly before the days of electronic filing, are notoriously inaccurate … would not be able to provide a reasonable picture of any taxpayer’s return,” he told the Times.

Opposition Democratic lawmakers in the House of Representatives are trying to get their hands on Trump’s tax returns from 2013 to 2018 as part of their investigation into the president’s foreign business deals.

Treasury Secretary Steven Mnuchin has so far declined, saying the request has no “legitimate legislative purpose.”

Disclosure of Trump’s tax returns is one of several current legislative oversight disputes the majority bloc of House Democrats is waging with Trump and his administration. Several panels are seeking background information uncovered by special counsel Robert Mueller’s investigation into Trump campaign links to Russia in 2016 and whether Trump, as president, obstructed justice by trying to thwart Mueller’s probe.

House Democrats are threatening to hold key Trump administration officials in contempt of Congress for failing to turn over information or to testify about their actions.

 

 

 

 

 

 

 

 

 

House Committee to Vote to Hold Attorney General in Contempt

VOA’s White House correspondent Patsy Widakuswara contributed to this report.

The U.S. House Judiciary Committee was due to vote Wednesday on holding hold Attorney General William Barr in contempt of Congress over the Justice Department’s refusal to provide an unredacted copy of special counsel Robert Mueller’s report on his investigation of Russian election interference.

Before the vote was held, the White House said President Donald Trump has “no other option than to make a protective assertion of executive privilege” over the materials the committee asked for in its subpoena, due to what Press Secretary Sarah Sanders called a “blatant abuse of power” by committee chairman Rep. Jerrold Nadler.

“The American people see through Chairman Nadler’s desperate ploy to distract from the President’s historically successful agenda and our booming economy. Neither the White House nor Attorney General Barr will comply with Chairman Nadler’s unlawful and reckless demands,” Sanders said in a statement.

Committee leaders and Justice Department officials had met Tuesday to try to resolve their dispute, but the two sides each issued statements late in the day indicating they remained far apart.

The Justice Department’s positions came in the form of a letter to Nadler from Assistant Attorney General Stephen Boyd who accused Nadler’s committee of making “unreasonable demands” and provoking “an unnecessary conflict between our respective branches of government.”

Boyd said the Justice Department had acted within the law and regulations by offering a copy of the Mueller report “with as few redactions as possible,” but said committee leaders escalated the dispute by demanding all committee members be allowed to review that version, something he said would “risk violating court orders” in some ongoing cases.

Nadler in his statement said the White House had long ago waived its executive privilege over the materials requested in the subpoena, which include not only the full Mueller report but also the underlying documents from the investigation of Russia’s interference with the 2016 election, whether members of Trump’s campaign colluded with Russia, and whether the president obstructed justice.

If the Democrat-controlled Judiciary Committee approves the contempt citation for the attorney general, it would be taken up by the full House of Representatives. In theory, someone held in contempt could eventually be tried and, if convicted, face up to a year in prison. The Justice Department rarely pursues such referrals from Congress.

Nadler’s committee is also considering whether to hold Donald McGahn, the former White House counsel, in contempt of Congress if he refuses to testify before the committee later this month about the Mueller probe.

McGahn on Tuesday refused to comply with a subpoena for documents related to the investigation.  The White House had demanded he ignore the subpoena, and his lawyer said the documents were property of the White House and as such McGahn had no right to them.

Barr last month released a redacted copy of the Mueller report, with the prosecutor concluding neither Trump nor his campaign colluded with Russia, but reached no conclusion whether Trump, as president, obstructed justice during the 22-month investigation.  Barr decided the findings did not warrant obstruction charges against the president.

In an online statement under the name DOJ Alumni, more than 700 former federal prosecutors, so far, who worked in Republican and Democratic administrations said evidence Mueller uncovered would have resulted in obstruction charges against Trump, were it not for the long-standing Justice Department policy that a sitting president cannot be charged with a criminal offense.

U.S. Senate Republican leader Mitch McConnell says it is time for lawmakers to move on from the Russia investigation.

But top Democratic leaders immediately disputed McConnell. Senate Democratic leader Charles Schumer called McConnell’s remarks “an astounding bit of whitewashing,” while House Speaker Nancy Pelosi said, “That’s just not a fact. The case is not closed.”

Waymo, Lyft Take on Uber with Rides in Self-Driving Car

Google’s self-driving car spinoff, Waymo, is teaming up with Lyft in Arizona to attempt to lure passengers away from ride-hailing market leader Uber.

The alliance announced Tuesday will allow anyone with the Lyft app in the Phoenix area to summon one of the 10 self-driving Waymo cars that will join the ride-hailing service by end of September.

Waymo’s robotic vehicles will still have a human behind the wheel to take control in case something goes awry with the technology. But their use in Lyft’s service could make more people feel comfortable about riding in self-driving cars.

Self-driving to a profit

Both Lyft and Uber consider self-driving cars to be one of the keys to turning a profit, something neither company has done so far. Meanwhile, Waymo has been slowly expanding its own ride-hailing service in the Phoenix area that so far has been confined to passengers who previously participated in free tests of its self-driving technology.

“We’re committed to continuously improving our customer experience, and our partnership with Lyft will also give our teams the opportunity to collect valuable feedback,” Waymo CEO John Krafcik wrote in a blog post.

Lyft President John Zimmer described the Waymo partnership as “phenomenal” in a Tuesday conference call. Uber didn’t respond to a request for comment.

The new threat to Uber is emerging as the San Francisco company pursues an initial public offering of stock that could raise $9 billion when the deal is completed later this week. Lyft raked in more than $2 billion in its own IPO in March, only to see its stock fall nearly 20% below its offering price amid concerns about its ability to make money, a challenge magnified by another loss of $1.1 billion during the first three months of the year.

Waymo invests in both

Waymo’s corporate parent, Alphabet Inc., is in line to be among the biggest winners in Uber’s IPO just as it was in the Lyft IPO. Alphabet owns a 5% stake in Uber that will be worth as much as $3.6 billion if Uber realizes its goal of selling its stock for as much as $50 per share. It also holds a 5% stake in Lyft that is currently worth $761 million.

Despite their financial ties, Waymo and Uber have had an acrimonious relationship since becoming entangled in a thorny case of alleged high-tech theft.

Waymo accused Uber of orchestrating a scheme to steal some of its autonomous driving technology. That came after Uber’s former CEO Travis Kalanick began to suspect Waymo was planning to use its self-driving cars in a rival ride-hailing service.

The two sides settled that dispute last year in a deal that required Uber to give Alphabet another bundle of stock that was worth $245 million at the time the truce was reached.

The agreement also requires Uber to submit to reviews by a software expert to ensure it isn’t misusing any of Waymo’s technology in its effort to build its own self-driving cars, a process that recently uncovered some potentially “problematic” issues, according to discloses made as part of Uber’s IPO. Uber warned the problems could require it to pay a licensing fee to Waymo or delay its efforts to introduce self-driving cars in its service.