“The thread contains fascinating screenshots of conversations between various content moderators and company executives as the laptop story debacle was unfolding. But given how massively Musk hyped the revelations, the results are a tad disappointing, and mostly confirm what the public already assumed: A (still unidentified) employee or process flagged the story as “unsafe” and suppressed its spread, and then Twitter moderators devised a retroactive justification—violation of a “hacked materials” policy—for having taken such an extraordinary step. Then-CEO Jack Dorsey was largely absent from these conversations; Vijaya Gadde, Twitter’s former head of trust and safety played “a key role.” None of this material is groundbreaking; it’s already well-known.
To be clear, it’s useful to see some of these internal messages. They confirm that Twitter’s various departments—communications, moderation, senior management—horrendously mismanaged the entire affair. They were not all on the same page: Vice President of Global Communications Brandon Borrman, for example, was immediately unconvinced by the “hacked materials” justification.”
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“The most interesting revelation in Taibbi’s thread is that Twitter’s top executives were warned, over and over again, that this decision was going to create a backlash like nothing they had ever seen before. Rep. Ro Khanna (D–Calif.), a progressive lawmaker, repeatedly emailed a Twitter communications staffer to complain that the firm was violating “1st Amendment principles.” (He raised some very valid points in his communications with the company, though strictly speaking the First Amendment does not apply in this situation.) NetChoice, a tech industry trade association, explicitly told Twitter that this would be the company’s “Access Hollywood moment.” (Unlike Twitter, both Khanna and NetChoice come off looking pretty good in all this.)”
“when Musk changed his mind about buying Twitter, many believed he would somehow get out of it, even if his legal justification seemed flimsy. But this time, Musk didn’t get out of it. That’s because, in large part, of the Delaware Court of Chancery, the business court overseeing Twitter’s lawsuit against Musk.
If he kept fighting the case, Musk would risk having to disclose more potentially embarrassing texts from his friends that could damage his image. And he was facing a judge with a no-nonsense reputation who might rule against him in the end. Even with a nearly endless supply of money to fund the best legal team, Musk ultimately backed down and closed the deal with Twitter on the original terms he’d agreed to in April.
This was a win for the rule of law, showing that even if you’re the richest man in the world, sometimes you do have to follow through on your obligations.”
“Musk’s income puts him in the top federal income-tax bracket, where income is currently taxed at 37 percent.
According to ProPublica, Musk’s average effective federal income tax rate between 2013 and 2018 was 27 percent.
And the tax on exercising his Tesla stock options was much higher. “Since the options are taxed as an employee benefit or compensation, they will be taxed at top ordinary-income levels, or 37% plus the 3.8% net investment tax,” notes CNBC. “He will also have to pay the 13.3% top tax rate in California since the options were granted and mostly earned while he was a California tax resident. Combined, the state and federal tax rate will be 54.1%.”
Jayapal seems to have reached her “alternative facts” (to use a vintage Trump-administration term) by calculating Musk’s tax rate based on a system she wishes we used rather than the calculation system we actually use.
As it stands, Americans do not pay taxes on unrealized gains—that is, appreciations in investments that exist only on paper. If you own a stock worth $5 per share and its worth increases to $6 per share over the course of a tax year, you have an unrealized gain of $1 per share. You aren’t expected to pay taxes on that gain until you sell your shares—which makes sense, since 1) you don’t actually have that money yet and 2) the stock’s worth could drop again before you sell. Maybe next year the stock decreases to $4 per share.
Jayapal appears to have come up with the alleged 3.27 percent tax rate for Musk by including unrealized gains in the amount she thinks he owes taxes on (while using the standard method for calculating the average income tax rate). However, unrealized gains are, by definition, gains that Musk doesn’t yet have. When he actually realizes the gains, he will be required to pay taxes on them. That’s how it works.”
“Twitter is, in many ways, a platform of the elite. While it can sometimes elevate the voices of ordinary people who don’t command massive followings on the platform, it’s most powerful as a communication tool for already prominent and influential people.
Though it has about 200 million daily users, Twitter has had an outsized role in shaping politics, particularly in the US as the former platform of choice for Trump until the end of his presidency, when he was permanently suspended for tweeting in support of the January 6 Capitol riot.”
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“Twitter is distinct from Facebook and Google in that the financial markets don’t truly reflect its full power, which is why Musk can entertain the idea of buying the entire company with a fraction of his total estimated net worth of over $220 billion.”
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“In its new era, Twitter has begun balancing its commitment to letting people say what they want and minimizing the harms that people can do using its platform. For Musk, there’s value in being the person who sets those terms, and he has made it clear that he will err on the side of allowing as much controversial speech as possible.”