U.S. Senate Finance Committee Chairman Ron Wyden said last week "he is revisiting proposed legislation that would crack down on the giant tax-free retirement accounts amassed by the ultrawealthy," reports ProPublica, "after a ProPublica story exposed that billionaires were shielding fortunes inside them." Earlier ProPublica had reported that PayPal founder Peter Thiel turned his retirement account "into a $5 billion tax-free piggy bank." Wyden said ProPublica's stories have shifted the debate about taxes at the grassroots level, underscoring a "double standard" that would have a nurse in Medford, Oregon, dutifully paying taxes "with every single paycheck" while the wealthiest Americans "just defer, defer, defer paying their taxes almost until perpetuity..." Wyden's proposal also targeted the stuffing of undervalued assets into Roths, which congressional investigators had flagged as the foundation of many large accounts. Under the Wyden draft bill, purchasing an asset for less than fair market value would strip the tax benefits from the entire IRA. ProPublica's investigation showed that Thiel purchased founder's shares of the company that would become PayPal at $0.001 per share in 1999. At that price, he was able to buy 1.7 million shares and still fall below the $2,000 maximum contribution limit Congress had set at the time for Roth IRAs. PayPal later disclosed in an SEC filing that those shares, and others issued that year, were sold at "below fair value...." Daniel Hemel, a tax law professor at the University of Chicago who has been researching large Roths, said that Congress should simply prohibit IRAs from purchasing assets that are not bought and sold on the public market... He added that lawmakers should go beyond reforms targeting the accounts directly and address a potential estate tax dodge related to Roths. If the holder of a large Roth dies, the retirement account is considered part of the taxable estate, and a significant tax is due. But, Hemel said, there's nothing to stop an American who has amassed a giant Roth from renouncing their citizenship and moving abroad to a country with no estate taxes. It's rare, but not unheard of, for the ultrawealthy to renounce their U.S. citizenship to avoid taxes. Under federal law, U.S. citizens who renounce their citizenship are taxed that day on assets that have risen in value but are not yet sold. But there's an exception for certain kinds of assets, Hemel said, including Roth retirement accounts. Thiel acquired citizenship in New Zealand in 2011. Unlike the United States, New Zealand has no estate tax. It's not clear whether estate taxes figured into Thiel's decision... Patching the hole in the expatriation law, Hemel said, "should be a top policy priority because we're talking about, with Thiel alone, billions of dollars of taxes." Wyden's proposed legislation to regulate Roth IRA accounts was excoriated in at least one 2016 editorial that complained everything in it was "opposed to capitalism and economic freedom."

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phalse phace shares a report from The Wall Street Journal: The Federal Trade Commission and Broadcom have agreed to settle charges that the company used its dominance in some chip markets to squeeze out potential rivals (Warning: source paywalled; alternative source). The FTC on Friday said that under a proposed consent order, Broadcom must stop requiring its customers to source three types of chips from the company on an exclusive or near-exclusive basis. The FTC said that Broadcom maintained its power in certain markets by entering long-term exclusive or near-exclusive agreements with at least 10 original equipment manufacturers of set-top boxes and broadband devices and service providers that prevented them from purchasing chips from Broadcom's competitors. The behavior, the FTC alleges, began as early as 2016. In one example of Broadcom's allegedly anticompetitive behavior, the FTC said the company threatened that if a service provider didn't limit purchases from its rivals, Broadcom would raise the price it charges the customer for software services.

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In a surprise announcement today, IBM announced that Jim Whitehurst, who came over in the Red deal, would be stepping down as company president just 14 months after taking over in that role. From a report: IBM didn't give a lot of details as to why he was stepping away, but acknowledged his key role in helping bring the 2018 $34 billion Red Hat deal to fruition and helping bring the two companies together after the deal closed. "Jim has been instrumental in articulating IBM's strategy, but also, in ensuring that IBM and Red Hat work well together and that our technology platforms and innovations provide more value to our clients," the company stated. He will stay on as a senior advisor to Krishna, but it begs the question why he is leaving after such a short time in the role, and what he plans to do next. Oftentimes after a deal of this magnitude closes, there is an agreement as to how long key executives will stay. It could be simply that the period has expired and Whitehurst wants to move on, but some saw him as the heir apparent to Krishna and the move comes as a surprise when looked at in that context.

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In what's been dubbed the "Great Resignation," a whopping 95% of workers are now considering changing jobs, and 92% are even willing to switch industries to find the right position, according to a recent report by jobs site Monster.com. CNBC reports: Most say burnout and lack of growth opportunities are what is driving the shift, Monster found. "When we were in the throes of the pandemic, so many people buckled down, now what we're seeing is a sign of confidence," said Scott Blumsack, senior vice president of research and insights at Monster. Already, a record 4 million people quit their jobs in April alone, according to the Labor Department. At the same time, there are more opportunities for job seekers -- with the Labor Department reporting a record 9.3 million job openings as of the latest tally. "The number of open jobs is higher than ever before, that's absolutely contributing to why candidates are putting their toe in the water to see what's out there," Blumsack said. As Covid vaccinations gain steam, so are plans to return to the office, which is driving more workers to consider their options. In a survey of more than 350 CEOs and human resources and finance leaders, 70% said they plan to have employees back in the office by the fall of this year -- if not sooner -- according to a report by staffing firm LaSalle Network. Of the companies that are planning for office reentry, managing employees who want to continue working remotely is a top concern, LaSalle Network found. "If we see a wave of employees leaving, companies are going to have to figure it out," Reitan said. The report goes on to cite a separate survey from McKinsey that says 9 out of 10 organizations will now be combining remote and on-site working.

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An anonymous reader shares a report: The face of nuclear energy is changing, and one of the companies working to redefine what nuclear energy looks like is Oklo. The 22-person Silicon Valley start-up has a plan to build mini-nuclear reactors, powered by the waste of conventional nuclear reactors and housed in aesthetically pleasing A-frame structures. "Microreactors are an exciting innovation that completely flips the technology story for nuclear energy," Alex Gilbert, a project manager for nuclear power think tank the Nuclear Innovation Alliance, told CNBC. Historically, nuclear energy producers aimed to be competitive with "economies of scale," meaning they save money by being massive, Gilbert said. That strategy, however, often results in construction projects being mired in delays and cost overruns, like the Vogtle nuclear power plant in Georgia, where estimates for the project have ballooned from $14 billion to an estimated $27 billion or more. "Microreactors promise to turn this paradigm on its head by approaching cost competitiveness through technological learning," Gilbert said. Oklo is the brainchild of the husband-and-wife co-founder team, Jacob DeWitte and Caroline Cochran, who met when they were teaching assistants in 2009 for the Massachusetts Institute of Technology's Reactor Technology Course for utility executives with nuclear power plants as part of their grid.

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Suppliers that want to land Amazon as a client for their goods and services can find that its business comes with a catch: the right for Amazon to buy big stakes in their companies at potentially steep discounts to market value. The Wall Street Journal: The technology-and-retail giant has struck at least a dozen deals with publicly traded companies in which it gets rights, called warrants, to buy the vendors' stock in the future at what could be below-market prices, according to corporate filings and interviews with people involved with the deals. Amazon over the past decade also has done more than 75 such deals with privately held companies, according to a person familiar with the matter. In all, the tech titan's stakes and potential stakes amount to billions of dollars across companies that provide everything from call-center services to natural gas, and in some cases position Amazon among the top shareholders in those businesses. The unusual arrangements offer another window into how Amazon uses its market heft to increase its wealth and clout. The company has been under growing scrutiny from regulators and lawmakers over its competitive practices, including with companies it partners with. While the deals can benefit the suppliers by locking in big contracts, which can also boost their share prices, executives at several of the companies said they felt they couldn't refuse Amazon's push for the right to buy the stock without risking a major contract. The deals in some cases also give Amazon rights such as board representation and the ability to top any acquisition offers from other companies. For Amazon, the arrangements give it a piece of the potential upside the vendors can get from doing business with one of the world's biggest companies.

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An anonymous reader shares a report: Robinhood Markets unleashed a revolution, marshaling throngs of new traders to financial markets in an upside-down year. But the free trading app's breakneck growth hurt the same small-time investors it sought to empower. That's the accusation leveled by Wall Street's self-funded watchdog, which extracted almost $70 million from the brokerage in a record settlement Wednesday, including a $57 million fine and about $12.6 million in payments to aggrieved customers. It follows Robinhood's meteoric rise against the backdrop of the Covid-19 pandemic and the frenzy over hot stocks such as GameStop Corp. that warped the realm of retail trading.

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Amazon.com filed a request with the Federal Trade Commission seeking the recusal of new Chairwoman Lina Khan from antitrust investigations of the company, in light of her extensive past criticisms of the company. From a report: "Given her long track record of detailed pronouncements about Amazon, and her repeated proclamations that Amazon has violated the antitrust laws, a reasonable observer would conclude that she no longer can consider the company's antitrust defenses with an open mind," Amazon said in a 25-page recusal motion filed with the FTC.

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Uber on Tuesday told employees it will roll out a hybrid return-to-work model this fall, allowing for a more flexible approach to location and time spent in the office. CNBC reports: The company is asking employees to be in the office 50% of the time. That time can be split up in whatever way works best for employees and their teams, Uber's chief people officer, Nikki Krishnamurthy, wrote in a blog post. That could mean one week on, one week off, or three days one week and two days the next week, for instance. It's a slightly different model than many companies have been choosing, where they ask employees to come in a set number of days each week. Uber employees will also have more flexibility on their preferred office location, the company said. They'll be able to choose from a list of "dedicated team hubs," instead of being limited to their pre-pandemic location. The new model will likely start this fall. Employees are allowed to continue to work from home until Sept. 13, barring a worsening of Covid-19. "Before then, our team will be able to apply for remote work or potential office changes. It's our goal to have all remote work/location transfers processed by September," a spokesperson told CNBC. Uber is also telling employees they can apply to become fully remote. "We'll also host periodic in-person meetings once our offices reopen so remote employees have the chance to meet and collaborate with their teammates face to face and benefit from in-person interaction and collaboration," Krishnamurthy said.

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Contract drivers say algorithms terminate them by email -- even when they have done nothing wrong. From a report: Stephen Normandin spent almost four years racing around Phoenix delivering packages as a contract driver for Amazon.com. Then one day, he received an automated email. The algorithms tracking him had decided he wasn't doing his job properly. The 63-year-old Army veteran was stunned. He'd been fired by a machine. Normandin says Amazon punished him for things beyond his control that prevented him from completing his deliveries, such as locked apartment complexes. He said he took the termination hard and, priding himself on a strong work ethic, recalled that during his military career he helped cook for 250,000 Vietnamese refugees at Fort Chaffee in Arkansas. "I'm an old-school kind of guy, and I give every job 110%," he said. "This really upset me because we're talking about my reputation. They say I didn't do the job when I know damn well I did." Normandin's experience is a twist on the decades-old prediction that robots will replace workers. At Amazon, machines are often the boss -- hiring, rating and firing millions of people with little or no human oversight. Amazon became the world's largest online retailer in part by outsourcing its sprawling operations to algorithms -- sets of computer instructions designed to solve specific problems. For years, the company has used algorithms to manage the millions of third-party merchants on its online marketplace, drawing complaints that sellers have been booted off after being falsely accused of selling counterfeit goods and jacking up prices. Increasingly, the company is ceding its human-resources operation to machines as well, using software not only to manage workers in its warehouses but to oversee contract drivers, independent delivery companies and even the performance of its office workers. People familiar with the strategy say Chief Executive Officer Jeff Bezos believes machines make decisions more quickly and accurately than people, reducing costs and giving Amazon a competitive advantage.

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Amazon's cloud services giant Amazon Web Services (AWS) is getting into the encrypted messaging business. From a report: The company has just announced that it has acquired secure communications service Wickr -- a messaging app that has geared itself towards providing services to government and military groups and enterprises. It claims to be the only "collaboration service" that meets security criteria set out by the NSA. AWS will continue operating Wickr as is, and offer its services to AWS customers, "effective immediately," notes a blog post from Stephen Schmidt, the VP and CISO for AWS, announcing the news. Financial terms were not disclosed in the short announcement. Wickr had raised just under $60 million in funding according to PitchBook data (it also notes a valuation of under $30 million but that seems to be a very old estimate).

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An anonymous reader quotes a report from Motherboard: Amazon's signature sales event has ended for customers, but Amazon drivers around the world are still working extended hours on routes with hundreds of stops to get those Amazon Prime Day packages delivered. In the United Kingdom, Amazon distributed a set of five tips to its drivers for "keep[ing] in top shape" during Amazon Prime Day: eat breakfast, drink water, take breaks, stay positive, and stop for lunch. But following these tips is impossible for many Amazon drivers who aren't even employed by the company. Amazon delivery drivers face extreme pressure from their contractors, known as Amazon Delivery Partners, who are in turn paid and evaluated by Amazon. In other words, they have to finish their routes as quickly as possible, often under pressure to circumvent safety rules, traffic laws, and skip legally mandated breaks in order to hit delivery targets. "Keep it positive: Endorphins are your friend!" one of the tips on the flyer distributed to Amazon drivers reads. "Keep them flowing by staying on the move, and striking up a conversation." On Facebook forums, where surviving the Amazon sales event has been a frequent topic of conversation among drivers in recent days, drivers joked about Amazon's tips. "Take your lunch and breaks. Sure, if you want [your dispatcher] on your ass saying you're 20 or so stops behind," an Amazon delivery driver in Los Angeles wrote. "I don't take a break. I eat and drink as I go, as I like to get back to see my kids before they go to bed," an Amazon delivery driver in a suburb of London who received the flyer, told Motherboard. "As for striking up conversations, sometimes customers wanna chat, but we always kinda respond like, 'Haha that's great—anyway we gotta go,'" an Amazon delivery driver in Virginia told Motherboard.

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Bumble, the dating app where women are in charge of making the first move, has temporarily closed all of its offices this week to combat workplace stress. Its 700 staff worldwide have been told to switch off and focus on themselves. From a report: One senior executive revealed on Twitter that founder Whitney Wolfe Herd had made the move "having correctly intuited our collective burnout". Bumble has had a busier year than most firms, with a stock market debut, and rapid growth in user numbers. The company announced in April "that all Bumble employees will have a paid, fully offline one-week vacation in June". A spokeswoman for Bumble said a few customer support staff will be working in case any of the app's users experience issues. These employees will then be given time off to make sure they take a whole week of leave. The spokeswoman confirmed that the majority of Bumble's staff are taking the week off. Bumble has grown in popularity during lockdown as boredom set in and swiping to find a match picked up.

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A London-based hedge fund that suffered losses betting against US retailer GameStop during the first meme stock rally in January is shutting its doors [Editor's note: the link may be paywalled; alternative source]. From a report: White Square Capital, run by former Paulson & Co trader Florian Kronawitter, told investors that it would shut its main fund and return capital this month after a review of its business model, according to people familiar with the fund and a letter to investors. White Square, which at its peak managed about $440m in assets, had bet against GameStop, say people familiar with its positioning, and suffered double-digit per cent losses in January. The move marks one of the first closures of a hedge fund hit by the huge surges in so-called meme stocks. Retail investors, often co-ordinating their actions on online forums such as Reddit's r/WallStreetBets and in some cases deliberately targeting hedge fund short sellers, drove up the price of stocks such as GameStop and cinema chain AMC Entertainment in January and again in recent weeks. GameStop, for instance, soared from less than $20 at the start of the year to more than $480 at its January peak. That led to big losses for some funds, including US-based Melvin Capital, run by Steve Cohen protege Gabe Plotkin, and Light Street Capital, run by Glen Kacher, a former Tiger cub who worked at Julian Robertson's Tiger Management. However, the funds remain in operation, and shortly after its losses Melvin received a $2.75bn investment from Cohen's Point72 Asset Management and Ken Griffin's Citadel. "The decision to close down is related to thinking the equity long-short model is challenged," said Kronawitter.

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According to leaker Evan Blass, OnePlus and Oppo are merging, with OnePlus becoming an Oppo sub-brand. OnePlus CEO Pete Lau made the announcement last week in a forum post, but Blass obtained a document that explains the integration in plainer terms. The Verge reports: "With the integration, OnePlus becomes a brand within Oppo, however will continue to function as an independent entity," reads the most pertinent answer. The memo also says that Lau's role as chief product officer at Oppo will make him responsible for the product strategies of both Oppo and OnePlus. [...] The memo confirms that this is essentially what's going to happen, removing any need to read between the lines. "With the merging of both the firms, we will have more resources at hand to create even better products," it says. "It will also allow us to be more efficient in our operations." OnePlus and Oppo had already merged their R&D departments around the turn of the year, so the further integration is more to do with streamlining day-to-day business operations. OnePlus customers shouldn't necessarily expect too much to change -- the shared ownership and supply chain meant that there have been similarities between Oppo and OnePlus phones for as long as OnePlus has existed. But now that OnePlus is acknowledging the relationship out loud instead of acting like it's a scrappy startup, all eyes will be on the company's next round of flagship phones.

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Amazon marks millions of unsold products for destruction each year in the UK, according to a new investigation by British television program ITV News. From a report: ITV found stacks of boxes marked "destroy" that were filled with electronics, jewelry, books, and other new or gently used items in one warehouse's "destruction zone." The news outlet caught the practice on camera while going undercover at the Dunfermline fulfillment center in Scotland. It says it tracked some of the goods to recycling centers and a landfill. About 124,000 items at Dunfermline were labeled "destroy" during a single week in April, according to an internal document obtained by ITV News. Just 28,000 items were set aside for donations during the same period. About half of all the stuff that's trashed are things that people returned, a former Amazon employee told ITV. While the other half are "unopened and still in their shrink wrap," the ex-employee said.

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For many professionals, Hawaii seems a dream spot for remote work. But pulling off remote work in the Aloha state takes more than a plane ticket and a laptop. From a report: The pandemic devastated the state's economy. According to the Hawaii Tourism Authority, visitor arrivals fell 97.6% between August 2019 and August the following year. Employment in the state's leisure and hospitality sector, which accounts for nearly one in five jobs, fell 53% between February and August 2020, according to the Pew Center. Thanks in part to state initiatives -- including pre-arrival coronavirus testing for visitors and marketing campaigns wooing remote workers -- tourism is on the rebound. In April, visitors reached nearly 500,000, compared with roughly 4,500 in April 2020. One program, called Movers and Shakas (named after the friendly Y-shaped hand gesture with extended thumb and pinkie that means "hang loose"), was launched in December with local business leaders. It offers free airfare to remote workers who commit to staying at least a month and participate in volunteer activities. The program's 50 spots attracted 90,000 applications. Applications for the second round will open this month. As it is elsewhere, reliable Wi-Fi is the litmus test for many. Some areas of the Hawaiian islands, especially rural regions, lack robust broadband or cellular infrastructure. Tomasz Janczuk, a 45-year-old based in the Seattle area who owns and operates a software-development firm, chose the three Big Island hotels that he and his family lived in for a month based on Wi-Fi strength. During an off-road excursion, Mr. Janczuk got a call from an employee about a service outage at his company. He pulled over and had to climb on top of his Jeep for sufficient reception to help troubleshoot the problem. "If there's no Wi-Fi, you have to fall back on cellphones, and that is quite spotty out there," said Mr. Janczuk, who also carried a hot spot. Some workers find that Hawaii's spectacular surroundings -- which drew them in the first place -- can be a distraction. Jasmyn Franks, a social-media strategist for an advertising agency in Kansas City, Mo., began working in mid-May from the palm-tree-filled backyard of her aunt's house in Mililani, a mountainous city on Oahu. Ms. Franks, 30, said initially, the first five to 10 minutes of every conference call were taken up with colleagues admiring her background. "So, there was a point where I was just like, 'OK, let's just take this to the corner or something where it kind of looks like I'm at the house.'"

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For three years until his departure this January, Simon McLaren served as the director of communications for Blade, the urban aviation startup that went public earlier this year at a valuation of more than $800 million. His work in that time was largely what you'd expect of a company spokesperson -- except for the fact that Simon McLaren doesn't actually exist. Business Insider reports: After Insider sought to verify McLaren's identity, Blade CEO Rob Wiesenthal admitted in an interview that McLaren was a made-up persona invented by him and his colleagues, and that Wiesenthal masqueraded as McLaren in telephone conversations with news outlets. The ruse lasted for years, duped numerous journalists, and included a puzzling public drama around McLaren's purported departure from Blade. None of it was real. Numerous news outlets quoted Simon McLaren as though he were a real spokesperson. McLaren has no substantial online presence outside of a Blade email address, a Twitter account created last December, and a Medium profile created last November. His personal website, created this January, was registered through a proxy, and he uses a 1966 photo of British racing driver Graham Hill across his accounts in place of a profile picture. Still, McLaren has been treated as a real human by a variety of news outlets since his apparent debut in the pages of Vanity Fair in 2018. Serving as the institutional voice of Blade in stories about the company's compliance with federal regulations, medical supply shuttles, and negotiations with the town of East Hampton, McLaren has been quoted by the New York Times, the New York Post, Curbed, the Washington Post, Fox Business, and CNN.

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Industry analysts believe that the global chip shortage is creating the perfect environment for counterfeit semiconductors to enter the market. From a report: With demand looking unlikely to calm down, analyst firm Gartner estimates that the semiconductor shortage will last well into 2022, and has warned equipment manufacturers that wafer orders could come with up to 12 months of lead time in the coming months. For some companies, this will mean finding an alternative way of stocking up on chips or shutting down production lines. In other words, the current times are opening up a golden opportunity for electronic component counterfeiters and fraudsters to step in. "If next week, you need to get 5,000 parts or your line will shut down, you will be in a situation of distress purchase and you will put your guard down," Diganta Das, a researcher in counterfeit electronics at the Center for Advanced Life Cycle Engineering (CALCE), tells ZDNet. "You won't keep to your rules of verifying the vendor or going through test processes. This is likely to become a big problem." As part of his research, Das regularly monitors counterfeit reporting databases like ERAI, and although it is too early to notice a surge, he is confident that the number of reports will start growing in the next six months as companies realize they have been sold illegal parts. The problem, of course, is unlikely to affect tech giants whose reliance on semiconductors is such that they have implemented robust supply chains, and will typically only purchase components directly from chip manufacturers. Those at risk rather include low-volume manufacturers whose supply chain for semiconductors is less established -- but it could include companies in sectors that are as critical as defense, healthcare and even automotive.

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Apple CEO Tim Cook said that he believes a proposed European law known as DMA would "not be in the best interest of users," signaling the iPhone maker's opposition to European legislation that would force it to allow users to install software outside of Apple's App Store. From a report: "I look at the tech regulation that's being discussed, I think there are good parts of it. And I think there are parts of it that are not in the best interests of the user," Cook said on Wednesday through videoconference at the Viva Tech conference in France. The European Union proposed two laws regulating big tech companies, the Digital Services Act and the Digital Markets Act, earlier this year. The DSA focuses on the online ad industry, but the DMA focuses on companies with large numbers of customers -- like Apple, Google and Amazon -- and sets rules requiring them to open up their platforms to competitors. One of Cook's issues with the law is that it would force Apple to permit sideloading apps on the iPhone, which is manually installing software from the internet or a file instead of through an app store. Currently, Apple's App Store is the only way to install apps on an iPhone, which has made it the focus of lawsuits and regulators around the world. Apple has claimed that its control over the App Store ensures high-quality apps and helps prevent malware. Cook noted that the iPhone's market share in France is only 23% and said that permitting sideloading on iPhones would damage both the privacy and security of users, citing increased malware on Android phones versus iPhones. Google's Android allows sideloading. "If you take an example of where I don't think it's in the best interest, that the current DMA language that is being discussed, would force sideloading on the iPhone," Cook said. "And so this would be an alternate way of getting apps onto the iPhone, as we look at that, that would destroy the security of the iPhone."

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