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Biden Orders $15 Min. Wage for Federal Contractors, Will Seek $80 Billion To Boost IRS Audits of High Earners

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  • President Joe Biden signed an executive order Tuesday granting federal contractors a minimum wage of $15, starting next year.
  • That wage will eventually increase alongside inflation and will also eliminate the “tipped minimum wage,” which allows federal employers to pay tipped workers as little as $7.65 an hour. 
  • Meanwhile, Biden is also pushing for an $80 billion boost to the IRS to better crack down on tax evasion from high-earners and large corporations.
  • During a joint session of Congress on Wednesday, Biden will outline that investment, which he expects to raise a net $700 billion, as part of his “American Families Plan.”

Min. Wage Increase for Federal Contractors

President Joe Biden signed an executive order Tuesday that will boost the minimum wage for federal contractors to $15.

In 2014, former President Barack Obama signed a similar order that set the minimum wage for people working on federal contracts at $10.10. Under inflation, that minimum wage has increased to $10.95.

As with Obama’s order, Biden’s will require the minimum wage to rise with inflation; however, unlike the Obama order, Biden will eliminate the “tipped minimum wage.” That provision allows employers of federal contractors to pay tipped workers as little as $7.65 an hour as long as their tips end up meeting the current minimum wage threshold.

Under Biden’s order, federal agencies will have until March 30 of next year to implement the $15 pay bump, which will affect hundreds of thousands of workers, including cleaning and maintenance professionals, food service employees, and nursing assistants for veterans. 

White House economists said they don’t believe the wage hike will result in significant job losses or that it will wind up costing taxpayers more money. Instead, they argue that this higher wage will lead to greater productivity and lower turnover. 

Even though this order will only directly affect federal contractors, the White House said it believes the order will also have indirect effects on other contractors as employers seek to offer competitive wages.

Biden Will Seek $80B To Boost IRS Audits of High Earners

Biden will also reportedly ask Congress Wednesday to consider an $80 billion boost to the Internal Revenue Service as part of his “American Families Plan.”

That plan, the second of his three-part “Build Back Better” agenda, will likely include provisions for childcare, universal prekindergarten, paid family leave, and free community college. 

Previously, it was reported that Biden is seeking to use long-term capital gains taxes on high earners to fund the program, but the administration is also reportedly hoping to generate extra revenue through a more robust investment in the IRS.

In fact, he believes the $80 billion investment could yield at least $780 billion in returns over the next 10 years.

Specifically, Biden wants the $80 billion to be directed into avenues that will allow the agency to better crack down on tax evasion from high-earners and large corporations.

Reportedly, that includes improving information technology so that the IRS can better target its audits. It also includes providing a dedicated funding stream to the agency so that officials can ramp up enforcement without fear of budget cuts, with Biden hoping that stream serves as a warning to tax evaders that the agency’s efforts won’t be stopped short because of such cuts. 

Biden also plans to add new disclosure requirements for people who own businesses that aren’t classified as organizations, as well as for wealthy individuals who attempt to hide money offshore. 

Some outside experts remain unconvinced that the IRS would be able to collect a net $700 billion from the investment. Likewise, the Congressional Budget Office will likely project a much more conservative estimate if it is granted the money.

That said, just a couple weeks ago, the commissioner of the IRS said tax cheats are costing the U.S. $1 trillion every year, so there is a pressing need within Congress to address the discrepancy.  

Past administrations have also been trying to close the tax gap for decades now. In fact, speaking with The New York Times, a former IRS commissioner under President George H.W. Bush called Biden’s plan “transformative.”

“Information reporting, coupled with restoring enforcement efforts, is key to improve in compliance,” that former commissioner, Fred T. Goldberg Jr, said. “Audits alone will never do the trick.”

See what others are saying: (The New York Times) (ABC News) (CNN)

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Misinformation Makes Up 20% of Top Search Results For Current Events on TikTok, New Research Finds

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According to the report, the app “is consistently feeding millions of young users health misinformation, including some claims that could be dangerous to users’ health.”


Misinformation Thrives on TikTok

As TikTok becomes Gen Z’s favorite search engine, new research by journalism and tech group NewsGuard found that the video app frequently suggests misinformation to users searching for news-related topics. 

NewsGuard used TikTok’s search bar to look up trending news subjects like the 2020 election, COVID-19, the invasion of Ukraine, the upcoming midterms, abortion, school shootings, and more. It analyzed 540 videos based on the top 20 results from 27 subject searches, finding false or misleading claims in 105 of those posts. 

In other words, roughly 20% of the results contained misinformation. 

Some of NewsGuard’s searches contained neutral phrases and words like “2022 election” or “mRNA vaccine,” while others were loaded with more controversial language like “January 6 FBI” or “Uvalde TX conspiracy.” In many cases, those controversial phrases were suggested by TikTok’s own search bar. 

The researchers noted that, for example, during a search on climate change, “climate change debunked” showed up. While looking up COVID-19 vaccines, searches for “covid vaccine injury” or “covid vaccine exposed” were recommended.

Dangerous Results Regarding Health and More

The consequences of some of the false claims made in these videos can be severe. NewsGuard wrote in its report that the search engine “is consistently feeding millions of young users health misinformation, including some claims that could be dangerous to users’ health.”

Among the hoards of hazardous health claims were videos falsely suggesting that COVID-19 vaccines are toxic and cause permanent damage to organs. The report found that there are still several videos touting the anti-parasite hydroxychloroquine as a cure-all remedy, not just for COVID, but for any illness. 

Searches regarding herbal abortions were particularly troublesome. While certain phrases like “mugwort abortion” were blocked, the researchers found several ways around this that lead to multiple videos touting debunked DIY abortion remedies that are not only proven to be ineffective, but can also pose serious health risks. 

NewsGuard claimed that the social media app vowed to remove this content in July, but “two months later, herbal abortion content continues to be easily accessible on the platform.”

Other standard forms of conspiracy fodder also occupied space in top search results, including claims that the Uvalde school shooting was planned and that the 2020 presidential election was stolen. 

TikTok’s Search Engine Vs. Google

As part of its research, NewsGuard compared TikTok’s search results and suggestions with Google and found that, by comparison, the latter “provided higher-quality and less-polarizing results, with far less misinformation.”

“For example, searching ‘covid vaccine’ on Google prompted ‘walk-in covid vaccine,’ ‘which covid vaccine is best,’ and ‘types of covid vaccines,’” NewsGuard wrote. “None of these terms was suggested by TikTok.”

This is significant because recent reports show that young Internet users have increasingly turned to TikTok as a search engine over Google. While this might elicit safe results for pasta recipes and DIY tutorials, for people searching for current affairs, there could be significant consequences. 

NewsGuard said that it flagged six videos containing misinformation to TikTok, and the social media app ended up taking those posts down. In a statement to Mashable, the company pledged to fight against misinformation on its platform. 

“Our Community Guidelines make clear that we do not allow harmful misinformation, including medical misinformation, and we will remove it from the platform,” the statement said. “We partner with credible voices to elevate authoritative content on topics related to public health, and partner with independent fact-checkers who help us to assess the accuracy of content.”

See what others are saying: (Mashable) (CNN) (USA Today)

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Over 70 TikTok Creators Boycott Amazon as Workers Protest Conditions and Pay

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As the company fends off pressure on both fronts, the Amazon Labor Union continues to back election petitions around the country including one filed Tuesday in upstate New York.


Gen Z Goes to War With Amazon

More than 70 big TikTok creators have pledged not to work with Amazon until it gives in to union workers’ demands, including calls for higher pay, safer working conditions, and increased paid time off.

Twenty-year-old TikToker Elise Joshi, who serves as deputy executive director for the advocacy group organizing the boycott, Gen Z for Change, posted an open letter on Twitter Tuesday.

“Dear Amazon.com,” it reads, “We are a coalition of over 70 TikTok creators with a combined following of 51 million people. Today, August 16th, 2022, we are joining together in solidarity with Amazon workers and union organizers through our People Over Prime Pledge.”

Amazon has refused to recognize the Amazon Labor Union (ALU) since workers voted to unionize at a Staten Island warehouse in April, and it has resisted collective bargaining negotiations.

Although the ALU is not involved in the boycott, its co-founder and interim President Chris Smalls expressed support for it in a statement to The Washington Post, saying, “It’s a good fight to take on because Amazon definitely is afraid of how we used TikTok during our campaigns.”

While the ALU posts videos on TikTok to drum up popular support for the labor movement, Amazon has sought to win large influencers over to its side. In 2017, it launched the Amazon Influencer Program, which offered influencers the opportunity to earn revenue by recommending products in personalized Amazon storefronts.

Last May, the company flew over a dozen Instagram, YouTube, and TikTok stars to a luxurious resort in Mexico.

Emily Rayna Shaw, a TikTok creator with 5.4 million followers who has partnered with Amazon in the past, is participating in the boycott.

“I think their method of offering influencers life-changing payouts to make them feel as if they need to work with them while also refusing to pay their workers behind the scenes is extremely wrong,” she told The Post.

“As an influencer, it’s important to choose the right companies to work with,” said Jackie James, a 19-year-old TikTok creator with 3.4 million followers, who told the outlet she will cease doing deals with Amazon until it changes its ways.

The ALU is demanding that Amazon bump its minimum wage to $30 per hour and stop its union-busting activities.

Slogging Through the ‘Suffocating’ Heat

Amazon is also facing challenges from workers themselves, with some walking out this week at its largest air hub in California, where company-branded planes transport packages to warehouses across the country.

They are asking for the base pay rate to be raised from $17 per hour to $22 per hour.

A group organizing the work stoppage under the name Inland Empire Amazon Workers United said in a statement that over 150 workers participated, but Amazon countered that the true number was only 74.

The Warehouse Worker Resource Center counted 900 workers who signed a petition demanding pay raises.

Inland Empire Amazon Workers United has complained about the “suffocating” heat in the facility, saying that temperatures at the San Bernardino airport reached 95 degrees Fahrenheit or higher for 24 days last month.

Amazon spokesperson Paul Flaningan, however, claimed to CNBC that the temperature never surpassed 77 degrees and said the company respects its workers’ right to voice their opinions.

On Tuesday, the ALU backed another warehouse’s decision to file a petition for a union election in upstate New York, roughly 10 miles outside Albany.

The National Labor Relations Board requires signatures from 30% of employees to trigger an election.

See what others are Saying: (The Washington Post (CNBC) (Associated Press)

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Twitter Roasts Tim Hortons for Offering Coffee and Donut to Settle Lawsuit for Spying on Customers

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The company allegedly tracked app users’ movements 24/7 to determine when they visited a competitor, a major sports venue, or their home or workplace.


A Not So Tasty Compensation

Social media users ridiculed Canadian fast food chain Tim Hortons over the weekend for a leaked email in which it offered to compensate customers whom it allegedly spied on by giving them a free beverage and pastry.

Twitter user James McLeod posted pictures of the email Friday, which was sent to affected users of the company’s app.

“You are receiving this email in connection with a proposed settlement, subject to Court approval, of a national class action lawsuit involving the Tim Hortons app and the collection of geolocation data between April 1, 2019 and September 30, 2020,” it read.

“As part of the proposed settlement agreement, eligible app users will receive a free hot beverage and a free baked good,” it continued. “Distribution details will be provided following approval, in the event that the court approves the settlement.”

The email specified that the free beverage would have a retail value of $6.19 (CAD) plus tax, and the free baked good would be $2.39 (CAD).

In a statement to Vice, Tim Hortons said the settlement is not admission of any wrongdoing and that the allegations in the lawsuits have not been proven in court.

“Add to this the fact that the coffee is absolutely abysmal and it becomes even more hilarious,” one person tweeted amid a flurry of criticism toward the company.

Another added, “Do you think the donut will have the good sprinkles or the bad sprinkles?”

‘Vast Amounts’ of Data Collected Illegally

Suspicion that Tim Hortons had violated its customers’ privacy began in 2020 when a reporter from the National Post found that the company’s app had tracked their location over 2,700 times in under five months.

Last Month, Canadian authorities wrapped up an investigation into the matter, finding that Tim Hortons tracked and recorded the movements of people who downloaded its app every few minutes of every day, even when the app wasn’t open.

Although the app requested permission to access geolocation data, authorities concluded that it misled users to believe it would only gather data while the app was open.

Using “vast amounts” of geolocation data, the company inferred where users lived, where they worked and whether they were traveling, according to investigators.

It even allegedly generated an “event” anytime a user entered or exited a Tim Hortons competitor, a major sports venue, or their home or workplace.

The investigation found that the company continued gathering data for a year even despite having shelved plans to use it for targeted advertising.

The company, which has committed to deleting all geolocation data on group members, said in a statement that it only used the data in a limited way, such as to analyze user trends.

See what others are saying: (Vice) (The Verge) (Privacy Commissioner of Canada)

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