White House Tax Plan Causing Quite the Stir; Twitter’s Very Good Day/Quarter; Silicon Valley Start-Up Eats $1.6M for Discrimination

So taxing…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

The White House whipped out its opening bid for what it’s calling the “biggest tax cut.” Well, in U.S. history anyway. So who’s supposedly getting a nice break? The middle class, for one, along with some businesses and, naturally, some wealthy individuals, among others.  While President Trump’s top economic adviser Gary Cohn and Treasury Secretary Steven Mnuchin want corporations to pay a 15% tax rate, the plan also calls for a one-time tax payment on earnings that U.S. companies keep outside the U.S. Apparently this new tax cut is meant to be all about simplicity, giving a much-needed boost to the small-business sector while putting some cash back into pockets of the middle-class. Individual rates would change, with the top rate dropping from almost 40% to 35%, and instead of having seven brackets of rates, we’d have just three.  Those cuts sound great, in theory, however, questions remain as to who will be paying for these cuts and how will they be paying for them.

It did what?!

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

We’ll start with the bad news. Twitter’s year-over-year revenue declined for the first time  ever to $548 million. But miracle of miracle – hey, we are talking about Twitter, after all – the social media company beat analysts expectations on everything else. TWITTER BEAT EXPECTATIONS. While last year’s revenue at this time was a much higher $595 million, it still wasn’t anywhere near dismal expectations of $512 million for this quarter. User growth has been a fiscal thorn in Twitter’s side. But perhaps the social media tide is turning because Twitter added 9 million more monthly active users bringing its grand total to 328 million users. 9 MILLION users added. You know what anaylyst expected? 2.3 million. Twitter effectively blew those estimates out of the water. As for the other numbers, the company earned 11 cents per share when expectations were for one single solitary cent. In other words, Twitter beat those estimates by a dime. Twitter explained that its impressive earnings were due in part to increased political interest – which sounds about right, especially given President Trump’s highly entertaining tendency to tweet before he thinks. Also, Twitter’s efforts to simplify use on the platform and putting greater focus on stamping out abuse seem to have helped matters…and figures.  Naturally, shares enjoyed a much appreciated increase today, soaring way past $16 a share.

Pony up…

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Palantir Technologies may be valued at $20 billion, but it’s about to lose $1.6 million of it as part of a settlement with the U.S. Department Labor. Charges were brought against the data-analytics company that it discriminated against Asians. Besides the money the company has to cough up, which will go towards back pay and stock options to affected applicants, Palantir also has to hire eight people, who had previously applied to the company, for two different types of engineering roles. According to the government’s complaint, Asians were “routinely eliminated” on the basis of their resumes and telephone interviews. But apparently, Palantir should consider itself lucky that the case didn’t end up going to court. If it had and lost, the penalties would have been so much worse. That $1.6 million is chump change compared to what it might have been had the company been found guilty. And that would be in addition to being added to a list that bars certain companies from doing business in the government sector. Palantir has so far enjoyed hundreds of millions of dollars from such contracts. Of course, Palantir disagrees with the allegations, refuses to admit to any wrongdoing and claims that it only settled so that it could carry on business without further interruptions. Incidentally, Palantir’s co-founded is Peter Thiel, one of President’s Trump’s biggest Silicon Valley supporters and cheerleaders from the start.