[HN Gopher] Google's lawyer accidentally made a sensitive docume...
       ___________________________________________________________________
        
       Google's lawyer accidentally made a sensitive document public
        
       Author : PretzelFisch
       Score  : 348 points
       Date   : 2021-04-11 13:27 UTC (9 hours ago)
        
 (HTM) web link (mattstoller.substack.com)
 (TXT) w3m dump (mattstoller.substack.com)
        
       | wpietri wrote:
       | Ooh, this is a great point: "there is reason to believe that the
       | further the government is willing to go in its statutory
       | definition of publicity the greater likelihood is there that it
       | may be excused from the necessity of exercising direct
       | administrative control." -- Henry Adams
       | https://en.wikipedia.org/wiki/Henry_Adams
       | 
       | I particularly like the idea that corporate tax returns should be
       | public, just like the way 990 forms from nonprofits are. Sunlight
       | is the best disinfectant.
        
         | ajcp wrote:
         | And publicity is a known remedy for social and industrial
         | diseases.
        
         | 1vuio0pswjnm7 wrote:
         | "In a response to the complaint of a group of state attorney
         | generals, Google's lawyers - Paul Yetter at Yetter Coleman -
         | filed a response, but accidentally forgot to redact critical
         | information. So now we know a few important new details about
         | the Texas adtech case. This case includes an allegation that
         | Google's large online advertising marketplace - think stock
         | market but instead of stocks they trade ad slots - is riddled
         | with secret rigged auctions."
         | 
         | Do we have journalists to thank for this "public knowledge".
         | They obtained copies of the response before Google discovered
         | the mistake. Otherwise how would we know. The judge has since
         | allowed Google to redact and re-file the response. The redacted
         | details will not be (accidentally) public anymore. Is the
         | government going to be able to use those redacted details in
         | its case.
         | 
         | Personally I think any litigation against FAANG, regardless of
         | whether it "succeeds", is the best way the public is going to
         | learn what these companies are actually getting up to, assuming
         | the cases make it to the discovery stage. That is only because,
         | IME, companies generally comply with legal discovery, no matter
         | how liable or guilty they may be. It is remarkable what you can
         | learn. So I say thank you to the journalists covering these
         | cases and reviewing what is filed.
        
         | robomartin wrote:
         | > I particularly like the idea that corporate tax returns
         | should be public
         | 
         | This is the sort of thing that sounds interesting but would be
         | an absolute disaster. This is particularly true in the context
         | of a globally competitive marketplace.
         | 
         | Simple example: If I want to enter your market and know your
         | exact cost structure, sales, etc. I can engineer a viable
         | competitive entry, secure IP and financing/investment come into
         | the market and destroy you. If, for example, I know your
         | margins are running very thin and funds low, I can squeeze you
         | out of existence.
         | 
         | Put in simpler terms, this is the reason you don't tell your
         | opponent what you are thinking and what your strategy and
         | concerns might be during (and even after) a chess game.
         | 
         | Same reason armies don't publish their battle plans either.
         | Business isn't a vacation in paradise. Every single competitor
         | (and other actors) is actively trying to kill you. If they are
         | not, they aren't a real competitor.
         | 
         | Public corporations are a very different story. Until the
         | advent of SPACs (aka: Ponzi Scheme) a company was very careful
         | about when to go public and had to achieve a certain mass and
         | scale to be able to justify and endure the scrutiny and
         | exposure.
         | 
         | The world of successful businesses is paved with stories from
         | entrepreneurs and companies who went to the very edge of
         | insolvency in pursuit of a dream, mission or objective and came
         | out of the other end with a massive success.
        
           | vidarh wrote:
           | In no country I've been involved in filing corporate tax
           | returns would the tax returns reveal the level of detail you
           | worry about.
           | 
           | Notably they'd reveal less than the accounts I'm already
           | having to file, that are public in lots of countries.
        
           | wpietri wrote:
           | This seems quite extreme to me. Do a lot of companies put
           | "what you are thinking and what your strategy and concerns
           | might be" in their tax returns?
           | 
           | The truth is that in any mature industry, companies have a
           | very good idea of each other's "exact cost structure, sales,
           | etc". Talk with a restaurateur about the competition, for
           | example, and they'll be able tell you in great detail about
           | how they operate. The sale prices are right on the menu.
           | They're buying from the same suppliers, hiring from the same
           | labor pool. And anybody can figure out how busy they are with
           | a a quick look in the windows. But restaurants are somehow
           | not "an absolute disaster".
           | 
           | And of course you're focused here on empathy for
           | corporations. But the whole theory of functioning
           | marketplaces is that companies shouldn't be comfortable. It's
           | best for the world when they compete vigorously.
        
         | toss1 wrote:
         | It has always seemed to me that corps should be taxed on the
         | greater of 1) their tax return profits or 2) their publicly
         | reported profits to the markets.
         | 
         | When major public corporations are paying zero or near-zero tax
         | rates, one of those figures is blatantly misleading.
         | 
         | Allowing secret and offshore books for taxes is a farce, and
         | damages every other taxpayer, especially the smaller businesses
         | and startups that lack the funding or scale to take advantage
         | of the tons of loopholes available to larger and transnational
         | corps.
        
           | sokoloff wrote:
           | Much of the spread between 1 and 2 are either jurisdiction or
           | time based. Time-based seems 100% reasonable to allow the
           | current spread. If you build a business over a decade,
           | incurring losses along the way, it seems entirely reasonable
           | to get credit for those losses when you first start making
           | profits.
           | 
           | Jurisdictional differences are more subtle or complicated.
           | Certainly, we wouldn't expect a company to pay taxes to every
           | jurisdiction on its entire global profits. So, we presumably
           | must allow some kind of apportionment of profits to different
           | jurisdictions and then the question becomes how to do so.
        
         | koheripbal wrote:
         | Wouldn't this put US registered corporations at a disadvantage
         | by allowing foreign competitors to analyze their cost
         | structures and finding their weaknesses?
        
           | UncleMeat wrote:
           | Sure. But is that sufficiently bad? Minimum wage laws, health
           | and safety laws, and all sorts of other regulations put US
           | corporations at a disadvantage on the world stage. The state
           | shouldn't just exist to make our corporations as profitable
           | as possible.
        
           | rsj_hn wrote:
           | Make foreign corporations do the same thing if they want to
           | sell to US consumers
        
           | totalZero wrote:
           | Two sides to that coin. It would attract investment because
           | shareholders want to know what they're paying for.
           | 
           | Also, what you're describing would foster competition because
           | other companies would be better able to identify profit
           | centers.
        
           | lordnacho wrote:
           | Competition is good for consumers, that's why we want to
           | encourage it. If your business model is undermined by people
           | understanding it, you've got a problem anyway.
        
             | natchy wrote:
             | > Competition is good for consumers
             | 
             | On the whole, yes, but not for all consumers.
             | 
             | If some people lived near a beautiful meadow and river, and
             | everyone else lived in the desert, then competition (e.g.
             | opening up a direct train to the meadow) would hurt the
             | ones living in the meadow.
        
             | ameister14 wrote:
             | Competition is usually good for consumers. It's not a law,
             | though. Sometimes competition results in worse outcomes.
        
           | 8note wrote:
           | That sounds like the right thing to do? You should only be
           | profitable if you make constant improvements. The constant
           | need for improvements is why we use capitalism at all. If
           | you're going to stagnate and stay profitable by hiding your
           | process, it might as well be run cheaper by the government
        
             | robomartin wrote:
             | You've never run a (non-trivial) business, have you?
             | 
             | Some of the things I read on HN are jaw-droppers. Then I
             | remember that people these days confuse opinion and lack of
             | context with facts and reality.
             | 
             | My wife often repeats a saying that goes something like
             | this: Your Google search isn't equivalent to my medical
             | degree, residency and decades of experience afterwards.
        
               | grumple wrote:
               | On the other hand, sometimes your Google search can help
               | a doctor in their analysis. An informed patient will get
               | better treatment than an uninformed one; you must be your
               | own healthcare advocate. And for anything nontrivial,
               | this is why second opinions are a must. It would also be
               | interesting if we lived in a world where case complexity
               | and outcomes for doctors and various diagnoses/operations
               | were published as well, so we can see how everyone really
               | holds up competitively.
        
               | [deleted]
        
               | lordnacho wrote:
               | I've run a non-trivial business that depended on secrecy,
               | and I recognize some of the ideas from the guy above. I
               | wouldn't say "just let the government run this hedge
               | fund", but there's some truth to what he's saying.
               | 
               | I think it's also important that people can make comments
               | on large social issues such as corporate transparency
               | without feeling like they need to be experts. In fact,
               | nobody can be an expert on these sweeping issues, because
               | these laws affect such a wide variety of entities.
               | 
               | I don't think the doctor comparison holds water. With a
               | lot of work, someone can be recognized as a medical
               | expert, but it's still a specific field that one can be
               | qualified in.
        
               | rpdillon wrote:
               | > Your Google search isn't equivalent to my medical
               | degree, residency and decades of experience afterwards.
               | 
               | Agreed, though I see the value of expertise partly in how
               | it allows those with it to explain why they see things
               | differently, rather than simply point out that they know
               | more.
        
             | ameister14 wrote:
             | >You should only be profitable if you make constant
             | improvements.
             | 
             | What? You should be profitable if you provide a good or
             | service that people want for a price they can pay. If
             | you're not profitable, you'll go out of business. The idea
             | that you must always be improving can be really, really
             | negative.
             | 
             | >If you're going to stagnate and stay profitable by hiding
             | your process, it might as well be run cheaper by the
             | government
             | 
             | Sure, the government should take over running KFC because
             | they won't publicize the herbs and spices.
             | 
             | These are ridiculous statements.
        
           | m463 wrote:
           | If you take the long view, would the transparency push
           | foreign governments to change to keep up?
        
         | BuyMyBitcoins wrote:
         | As an aside, I hate the expression that "Sunlight is the best
         | disinfectant" because it's just not true.
        
           | wizzwizz4 wrote:
           | Throw some biological matter into the sun, and it'll be
           | sterile before it gets there. So _technically_ ...
        
           | wpietri wrote:
           | Depends on the heuristic for "best". It's widely available,
           | reasonably effective, and 100% free, which seems pretty good
           | to me.
        
         | clairity wrote:
         | yes, power wants to act surreptitiously because that minimizes
         | both reputational damage and potential resistance, and
         | transparency is a natural counter to that.
         | 
         | i'm a strong proponent that transparency should increase
         | superlinearly with power, which is something that our framers
         | (in the US) had approximated, but never made particularly
         | explicit. the average individual has a substantial right to
         | privacy, basically having much autonomy to control information
         | disseminated about themselves.
         | 
         | on the other end, the average multinational conglomerate should
         | have basically no privacy, for the company itself, its owners,
         | and its management, as well as its political & commercial
         | transactions. of course you'd have to be careful of the privacy
         | rights of customers and suppliers (who'd also have varying
         | transparency levels for themselves), but those could be
         | anonymized. the neat aspect of that is that only larger
         | entities would tend to be susceptible to being deanonymized
         | through transaction pattern analysis, which is fine, since
         | larger entities require more transparency anyway.
         | 
         | in between are powerful individuals (full politicoeconomic
         | transparency required) and small businesses (little
         | transparency required).
        
           | contravariant wrote:
           | I know it's not a popular term in the U.S. but the socialist
           | answer would be that companies serve the public and should
           | therefore make information freely available unless there's a
           | good reason not to.
           | 
           | For the same reason companies shouldn't get to keep or
           | distribute information on the very people they're supposed to
           | be serving (unless there's a good reason to).
           | 
           | So rather than transparency increasing with power, you could
           | also say that the lack of transparency itself is placing
           | powers in the exact opposite place of where it should be.
        
           | wpietri wrote:
           | Yes, exactly.
           | 
           | For me, right to privacy declines with impact to others. What
           | you're doing alone in your house? Don't care. Between
           | consenting adults? I almost don't care, except when public
           | health matters (e.g., STDs, or COVID contact tracing). but
           | the more we move toward public impact, the more I think
           | there's a public right to know.
           | 
           | Another way to look at it is that people have a right to
           | _privacy_ , but not _secrecy_. Me lending my brother some
           | money is reasonably seen as private. Me giving the same
           | amount of money to a legislator as a bribe is something I
           | might want to keep secret, but given the public impact, can
           | 't really be called private.
        
             | sokoloff wrote:
             | I don't find what happens between consenting adults to have
             | a compelling STD-related public health reason to breach
             | privacy. If you do, could you expand on why you think that?
        
       | ma2rten wrote:
       | I wouldn't take what someone says on substack at face value. Does
       | anyone know if the unredacted document is available somewhere?
        
         | ocdtrekkie wrote:
         | Matt Stoller is an expert in the field of antitrust, feel free
         | to look him up.
        
       | lupire wrote:
       | The auction part of this sounds like what people say rock bands
       | and Nvidia should do: raise prices to make supply match demand
       | and cut scalpers out of the loop.
       | 
       | BTW, the OP is a copyright-dodging paywall-bypassing rehash of a
       | WSJ article https://www.wsj.com/articles/googles-secret-project-
       | bernanke...
        
       | lordnacho wrote:
       | A position I've come to via free markets is public information.
       | 
       | If you look at economic inefficiency, a lot of models depend on
       | some kind of information problem, eg the famous lemon cars.
       | 
       | Consequently, I think far more of how society works should be
       | made public:
       | 
       | - Actual incomes from various sources. Maybe anonymize it, but
       | I've looked up my Norwegian friends' incomes and it hasn't caused
       | a revolution or an epidemic of kidnappings yet. X person is a
       | doctor, he needs a 10 year degree to do that, he get paid PS120k,
       | he gets this much pension, these are his working hours. Again, as
       | you grow up you find out some of this but it's very not easy to
       | find, especially when you're deciding.
       | 
       | - Actual business models. "We provide a search engine, where we
       | dynamically auction off advertising space, it makes x amount of
       | money, and we thin y and z are critical to our profitability.
       | Here's book about how it works." To some degree we know this
       | about certain large businesses, but apart from the huge firms
       | whose models have Ben Thompson writing about them, it's not
       | actually that easy. It should be easy for everyone who's
       | graduated high school to find out how the largest 10k firms in
       | the country operate, so that people can think about how to
       | improve things.
       | 
       | - Actual business models, part 2. "We make x millions from y
       | thousand widgets, which we sell to these people. Our suppliers
       | are these firms, and we paid this much to them." Which again is
       | one of those things where you can say "Google pays Apple to be
       | default" but I also want to know if there's some other
       | relationship that maybe I could get my company into. Or it may be
       | that there's some social negative such as monopoly that we want
       | to know sooner rather than later.
       | 
       | - A who-owns-what database that doesn't have anonymizing entities
       | in it. How will we know how society works if we don't have this?
       | There's no way to know who has an interest in what without this.
       | Again, you can say "kidnappings" but there's got to be some
       | middle ground here. It's also a bit strange for society's major
       | legal invention, property law, to work in favor of people when
       | they ask for it, but the rest of the time society doesn't know
       | who it is protecting. I'm no expert but you'd think a sane system
       | would say "so-and-so owns this land, and in exchange for a bit of
       | tax we'll make sure they can use it as they see fit".
       | 
       | - Government needs to be transparent. People already believe
       | this, it's just quite hard and boring to get done. But for
       | instance David Cameron trying to lobby his old mates, it's a
       | great thing that we can see it.
       | 
       | As for this specific article, the interesting thing is that if
       | ads were traded on a security market, a whole can of worms would
       | be opened. We discovered a long time ago that it's bad to favor
       | certain participants, so some stringent rules were put in place
       | regarding fairness. But if I make a market for some other thing
       | and behave the same way, it's not nearly as serious. I mean sure
       | maybe they'll get done for this, but will it be proportional to
       | the harm? Write to me when they're broken up, as the LSE would be
       | if they made a principal business that front-runs the customers.
        
         | nitrogen wrote:
         | I've always thought it would be cool if there was a
         | "declassification" period for commercial contracts. Any
         | contract has to be escrowed to be enforceable, and after N
         | years the contract is made public, possibly with names
         | redacted. This would help everyone understand what types of
         | business relationship are possible, which are common, etc.
        
       | raverbashing wrote:
       | Humm remember when Google's confidential commercial information
       | about Android "accidentally" leaked most likely through the
       | opposing council that time https://uk.finance.yahoo.com/news/why-
       | leaked-android-numbers...
        
       | stefan_ wrote:
       | This has the redacted document:
       | 
       | https://twitter.com/jason_kint/status/1381057389265321989
       | 
       | So you can see they redact "Bernanke" as in "Project Bernanke".
       | Why? What possible trade secret is there involved in naming
       | something after a guy that never worked for you? What kind of
       | judge acquiesces to this bullshit?
       | 
       | Where is Alsup to tell these clowns to no more redactions?
        
         | hnburnsy wrote:
         | Search Bernake Helicopter Money, so it could imply that Google
         | thinks this project is so profitable that money will be falling
         | from the sky or maybe Google thinks it is a license to print
         | money, like the the 'Fed and the money printers go brrrrrrrr'
         | meme.
        
           | whimsicalism wrote:
           | This is a very small niche meme, and most of the "money
           | printers go brrr" stuff is meme-ing post March 2020, when
           | people didn't understand why the markets didn't go down.
           | 
           | Certainly, it's a reference to central banking, I doubt it is
           | to this meme.
        
             | xhkkffbf wrote:
             | Several years ago, a person deep inside GOOG told me that
             | the company had a secret knob that they could turn to
             | increase revenues. He didn't go into details, but I
             | concluded that it had something to do with the ad auction
             | pricing. This could be that "dial".
             | 
             | Perhaps it's just a reference to Fed policy snoozery, but
             | the helicopter connection seems like a better fit to me.
        
               | lupire wrote:
               | Raising prices isn't really a "secret knob".
        
               | extropy wrote:
               | It is however very suspicious knob if most of the
               | spending is automated.
               | 
               | To attempt an anology, consider if all phone calls where
               | charged by the minute and there is a knob to adjust the
               | pricing.
               | 
               | One cal argue it's a reasonable tool to have. You can
               | turn the knob up to "print money". Or you can turn it up
               | to survive in a time when number of phone calls goes
               | significantly down and you need to cover the fixed
               | expenses.
               | 
               | If the price is too low you are leaving money on the
               | table. If the price is too high users will see the costs
               | surpassing the benefits and move to other products. Why
               | not take all the money the market will bear?
        
               | toast0 wrote:
               | I'm sure they could adjust the auction pricing, but they
               | could also increase the size of ads (either more ads, or
               | bigger text) on the search result page (or other high
               | traffic pages). Many moons ago, at Yahoo Travel we had a
               | few requests to boost revenue near the end of the
               | quarter; adding a third text ad works, but you don't
               | really want to keep it because it reduces the utility of
               | the page.
        
             | 0xDEEPFAC wrote:
             | When Bernanke made the speech in 2016 where he invented the
             | idea of a helicopter dropping money it was pretty much
             | instantly a meme... everyone in the finance community knew
             | about it because of how ridicules it sounded
        
               | randallsquared wrote:
               | The real heyday of this was early 2000s, after Bernanke
               | used it in a speech the first time. Maybe he mentioned it
               | again in 2016?
        
               | joelwilliamson wrote:
               | Bernanke used it in a speech for the first time in 2002,
               | but it was coined back in 1969 by Milton Friedman.
               | 
               | https://en.m.wikipedia.org/wiki/Helicopter_money
        
               | lupire wrote:
               | And Friedman was referring to 1930s Keynsian ideas about
               | stimulus. Keynes's original version was paying people to
               | needlessly smash rocks.
        
         | Ericson2314 wrote:
         | Because the name "Bernanke" sounds like one is thumbing their
         | nose at the central bank. Merely not a good look!
        
         | koheripbal wrote:
         | Judges do not approve redactions. Parties redact things in the
         | documents they produce, and then the other side has to
         | challenge them in court to get the unredacted version.
         | 
         | ...but since such challenges are costly and time consuming -
         | typically they aren't done.
        
       | cycomanic wrote:
       | So will there be criminal charges brought. I highly doubt it.
       | That is typically the problem, a normal person gets the book
       | thrown at them (even if they e.g. commit a crime accidentally),
       | while nobody goes after the big guys because it is deemed to be
       | too expensive or some other reason.
        
         | dls2016 wrote:
         | Don't worry... She will be pulled over, peppered sprayed and
         | held 3 months without a hearing.
        
         | bendergarcia wrote:
         | It's sad, even the place that is supposed to be fair isn't due
         | to money. Money rules too many of America's systems. But I have
         | a feeling that money will always find a way to be influential.
        
           | jacquesm wrote:
           | > even the place that is supposed to be fair isn't due to
           | money
           | 
           | What place is that?
        
           | lotsofpulp wrote:
           | Money is just a proxy for power. Power is synonymous with
           | influence.
        
             | throwaway3699 wrote:
             | There are plenty of influential broke people. Just look at
             | YouTube.
        
               | [deleted]
        
               | albatruss wrote:
               | Exactly. That's why money is a proxy, not equivalent to
               | power.
        
               | bendergarcia wrote:
               | A YouTuber cant use their likes to get the best lawyer
               | can they? Even if they can (promos), it still means the
               | legal system is unfair. The ones who benefit the system
               | the most benefit from it.
        
               | throwaway3699 wrote:
               | Influencers can easily raise hundreds of thousands to
               | fight legal cases if they have an audience that cares
               | about their cause.
               | 
               | Edit: s/YouTubers/Influencers
        
               | luckylion wrote:
               | And they can turn that influence into money very quickly.
               | They might lose some of it when they cash in (or sell
               | out), but it's pretty convertable.
        
               | TeMPOraL wrote:
               | And the conversion rate is good at quantifying how much
               | actual influence a person has. Which may be less than
               | they think.
               | 
               | How much influence a typical YouTuber with 10k
               | subscribers have? Very little, actually - they can affect
               | audience's thinking in a limited domain, or get them to
               | buy some stuff to a limited degree. All restricted to how
               | much a cohort of volunteers cares about what their
               | entertainers tell them.
               | 
               | Contrast that with a person wielding a $100. They can
               | literally get someone to do almost anything for them for
               | a couple of hours. Or, in general, they can exchange it
               | for $100 worth of goods and services provided by an
               | industrial civilization. That's what hard influence looks
               | like.
        
         | busterarm wrote:
         | That's exactly it. Rich people have the resources to fight for
         | longer than you will hold your office.
         | 
         | There's a really eye opening report 2 years ago from Charles
         | Rettig, commissioner of the IRS, where he openly states that
         | his agency focuses audits on poorer people, because they have
         | less resources to fight and are more likely to just pay up and
         | move on. Most of the audit resources are targeted at people
         | claiming the earned income tax credit.
        
           | adventured wrote:
           | Edit: I provided actual data - facts - straight from the IRS.
           | If you're going to downvote, I dare you to bring something to
           | the table to counter reality (good luck).
           | 
           | > where he openly states that his agency focuses audits on
           | poorer people
           | 
           | As incomes rise, audit % rates rise. The IRS does not focus a
           | large share of its energy on poorer people. The people
           | earning under $50,000 per year have a very low audit rate,
           | and that's straight from the IRS data. Once your income
           | climbs over $200,000 your audit rate begins to skyrocket.
           | 
           | In terms of volume, 60% of all filers are at $50,000 or
           | lower, so obviously even at a low % of audits they're still
           | going to have a lot of audits. The IRS does audit people
           | filing as having no income at a relatively high rate, because
           | that category frequently attempts to use incorrect deductions
           | to try to hide income. The rate of fraud is very high in that
           | category.
           | 
           | Here:
           | 
           | https://www.irs.gov/pub/irs-utl/2017ntf-
           | irsauditstriggers.pd...
           | 
           | "The majority of audited returns are for taxpayers who earn
           | $500,000 a year or more, and most of them had incomes of over
           | $1 million. These are the only income ranges that were
           | subject to more than a 1% chance of an audit in 2018. " --
           | [note: the $500k+ group is the majority of audited returns
           | despite the fact that they're a tiny share of all returns,
           | which tells you how low the audit rate is for the poorer
           | categories.]
           | 
           | "According to IRS statistics, you're safest if you report
           | income in the neighborhood of $25,000 to $200,000. These
           | taxpayers were audited the least in 2016."
           | 
           | https://www.thebalance.com/top-audit-triggers-that-catch-
           | irs...
        
             | hnburnsy wrote:
             | Not sure if others but I found your comment is an unfair
             | characterization of what Rettig said, the from him is...
             | 
             | ' the most efficient use of available IRS examination
             | resources'
             | 
             | The IRS has less resources so, it is not directly targeting
             | those with less resources like you are attributing to
             | Rettig. The IRS is targeting the most fraudulent schemes
             | where it can effectively recover, based in its staffing and
             | budget level.
             | 
             | Here is the report from the IRS on this...
             | 
             | https://www.documentcloud.org/documents/6430680-Document-20
             | 1...
        
             | maxerickson wrote:
             | If you are gonna get the vapors, maybe post IRS data that
             | covers the period it has been administered by Rettig,
             | instead of a report coming in at the tail of the previous
             | administration?
             | 
             | https://www.propublica.org/article/irs-now-audits-poor-
             | ameri...
             | 
             | So that story does basically say that the EITC audits don't
             | cost a lot, but it also doesn't say if they are worthwhile,
             | and it says that the wealthy are getting audited less and
             | less.
        
             | jellicle wrote:
             | > The IRS does not focus a large share of its energy on
             | poorer people.
             | 
             | This is just untrue. In 2021, almost all of the IRS'
             | enforcement energy is focused on poor people. This is
             | continuing a trend that has gone on for 30+ years now of
             | steadily reducing enforcement on the rich and holding it
             | steady or increasing it on the poor, particularly aiming at
             | anyone who claims the Earned Income Tax Credit.
             | 
             | The IRS audits _half_ as many people as it did just five
             | years ago. It audits _1 /5th_ as many people as it did in
             | the 1970s. And these cuts have applied mainly to the top
             | end of the income spectrum. Somehow it passed without much
             | public notice that Trump's budgets massively slashed an
             | already severely underfunded IRS.
             | 
             | In fact, the IRS has now _ceased reporting_ its audit rates
             | of the rich and large corporations, because they 're so
             | low, so we no longer even know how low they are.
             | 
             | https://www.propublica.org/article/has-the-irs-hit-bottom
        
               | einpoklum wrote:
               | Thank you for this. This seems to be of quite a lot of
               | significance, and I've not heard it mentioned even on
               | alternative media (although, granted, I'm not from the US
               | so I don't follow as closely as a local would).
        
               | [deleted]
        
             | iudqnolq wrote:
             | Here's what the OP was referring to.
             | 
             | > On the one hand, the IRS said, auditing poor taxpayers is
             | a lot easier: The agency uses relatively low-level
             | employees to audit returns for low-income taxpayers who
             | claim the earned income tax credit. The audits -- of which
             | there were about 380,000 last year, accounting for 39% of
             | the total the IRS conducted -- are done by mail and don't
             | take too much staff time, either. They are "the most
             | efficient use of available IRS examination resources,"
             | Rettig's report says.
             | 
             | https://www.propublica.org/article/irs-sorry-but-its-just-
             | ea...
        
             | refenestrator wrote:
             | A better characterization, from memory, was that they don't
             | bother with the ultra-rich because it's difficult to win.
             | 200k-1M is probably the danger zone.
        
               | busterarm wrote:
               | 39% of audits are people who claimed EITC...which only
               | applies to low and moderate-low income workers.
        
               | busterarm wrote:
               | Otherwise read as "anyone who dare try to not be poor".
        
           | Shivetya wrote:
           | Sadly Congress isn't going to fix this because it requires a
           | much simpler tax system instead of one that is filled from
           | end to end with special carve outs and rules.
           | 
           | When our current President subscribes to using tax law
           | shenanigans to avoid paying taxes you can damn well bet much
           | of the rest of Congress and high ranking state leaders will
           | be found doing the same. One of the larger avenues of abuse
           | is through S Corporations which let individuals shunt off
           | income thereby avoiding certain types of taxes. It is also
           | used by leadership of various charitable organizations to
           | redirect money for purposes many would think fraudulent; like
           | using them to buy homes for use by organization leadership or
           | cover business jet ownership
        
             | TheAdamAndChe wrote:
             | Those who know the rules of a game and can play it well are
             | often best suited to make good changes as long as
             | incentives align.
        
           | NikolaNovak wrote:
           | (Any links or direct quotes?that sounds more like
           | interpretation than a report but I'd be curious to see! Thx)
        
             | iudqnolq wrote:
             | (not op). It's an essentially direct quote from the current
             | head of the IRS.
             | 
             | https://www.propublica.org/article/irs-sorry-but-its-just-
             | ea...
        
         | ajmurmann wrote:
         | And if someone gets charged it's the company which ends up
         | paying a relatively small fine, since companies are people but
         | we cannot send them to prison.
        
           | anonymousab wrote:
           | > but we cannot send them to prison.
           | 
           | I think this belief is the problem. At the very least, a
           | company has representatives; if it was to go to jail for a
           | crime, then the C-suite or board could go in its place. A
           | reasonable risk and form of accountability for the high
           | rewards they already get.
           | 
           | But I think it's fair to take it a step further: imprison the
           | company. That is, apply any effects you would apply to a
           | prisoner to that corporation. Lack of communication or direct
           | control of assets and funds for the equivalent period of time
           | for a start.
           | 
           | Would that be existential, if not company ruining for any
           | large length of time? Sure, just as it is for the average
           | citizen. They'll lose many of the things they own, their jobs
           | and livelihood and sometimes much more with any large prison
           | sentence. Their loved ones and dependants' and acquaintances'
           | lives are dramatically affected. So too can it be made the
           | same for a company.
           | 
           | The limit of limited liability should change with scale.
        
         | adventured wrote:
         | They should all be in prison, they're criminals. And this is
         | likely just the lighter stuff, this is what they're getting
         | caught doing that can be easily tied back back to them
         | directly. Your high doubt is warranted, absolutely nothing will
         | happen to the likes of Sandberg & Co., they're literally
         | protected, representing the ultimate privileged class.
         | Absolutely nobody will dare go near them.
         | 
         | You also won't see the hundred billionaires Sergey Brin & Larry
         | Page getting pulled in by the Feds and questioned over the
         | various criminal activities at Google during their reign. They
         | ran away, fled before the curtain came down, specifically to
         | evade the risk of their actions coming back on them as the Feds
         | & states start turning Google inside out and the scrutiny gets
         | intense. It was left for Pichai to deal with.
        
       | kodah wrote:
       | > The court system is supposed to be a public accounting
       | 
       | I'm not a lawyer but I can't see how having every court case
       | public is a good thing. The public accountability should likely
       | be based on judges (the participants) and whistleblowers with a
       | solid burden of proof threshold. Court cases _do_ need to stay
       | private in my mind.
        
         | lakecresva wrote:
         | > I'm not a lawyer but I can't see how having every court case
         | public is a good thing.
         | 
         | Well for one, the US has a common law legal system, so it's
         | entirely dependent on the public availability of court cases.
         | In terms of fairness, I think the current status quo is (in
         | this limited respect) very reasonable; you're entitled to
         | absolutely iron-clad privacy in the interactions which you pay
         | for, which are your interactions with your attorney. When you
         | start making use of public funds by bringing your dispute to
         | the courts, the public has a right to know what it's money is
         | being spent on and it has a right to know what's going on in
         | the community. The vast majority of legal disputes are settled
         | in state district courts, which are local in scope.
         | 
         | I also don't think privacy mixes well with the degree to which
         | the judiciary is uniquely unaccountable, though this is
         | admittedly less and less relevant as time goes on since
         | basically nobody in government is accountable for anything at
         | this point.
        
           | kodah wrote:
           | I'm still not convinced accountability means that the public
           | gets full view of everything. There's probably other ways to
           | ensure that the public gets to know their money is not wasted
           | without hearing and seeing every little detail.
        
       | bawolff wrote:
       | Why are they going on about tax returns? Doesnt seem like that's
       | related to what was leaked.
        
       | mettamage wrote:
       | So can someone with some knowledge about Google's and Facebook's
       | past give an idea on how legally and morally good/bad this is
       | compared to previous things they did?
       | 
       | It seems really bad, to the point that Black Mirror-esque things
       | are simply a decade away.
       | 
       | With that said, I don't know enough to draw that conclusion.
        
         | xiphias2 wrote:
         | I think it's the same category as inflating conversions from
         | the point of the advertiser (both are nasty, here it is more
         | easy to prove criminal intent): if you are an ad buyer, make
         | sure that you are adapting your bids and measure everything
         | yourself.
        
         | prepend wrote:
         | Seems like Google's internal units were bidding up ad prices.
         | Since no one can see that but Google, ad buyers didn't know
         | they were paying higher prices.
         | 
         | It could just be stupidity. Or bad policy. Or it could be
         | systematic to maximize their as sales. Google's not stupid, so
         | them allowing it means they were aware and will able to easily
         | explain why it's not that big of a deal.
         | 
         | It's like if eBay sellers had their subsidiaries bidding up
         | prices on their items. And not disclosing. Maybe there's a good
         | reason, probably just sneaky greed.
        
           | throw14082020 wrote:
           | If ebay did that, they might end up buying a whole lotta
           | crap. This technique is not a money pit when information is
           | available. I'm not clear on the information available to
           | publishers, but I don't think its as clear as ebay. The
           | legality is more subtle
        
             | prepend wrote:
             | Not if they used their proprietary data to bid up but never
             | win auctions. Especially since they know other bidders max
             | price willing. So bidding for max-1 would result in no
             | wins, but lots of extra money.
             | 
             | This would make me not use eBay. But there's really not an
             | alternative for ad markets controlled by Google.
        
           | fakedang wrote:
           | eBay sellers don't control their marketplace nor do they have
           | access to all the internal data that can influence purchasing
           | decisions. Google controls its ad market fully.
        
           | smt1 wrote:
           | Reminds of wallstreet sell side firms front running their own
           | clients.
        
           | xhkkffbf wrote:
           | Shill bidding is illegal in auctions. They've represented
           | these ad markets as auctions, but it seems like they aren't.
           | You're bidding against some machine designed to make you pay
           | more.
           | 
           | Can anyone offer a legit explanation.
        
             | URSpider94 wrote:
             | One possibility: Google creates a fully independent
             | subsidiary that bids on AdSense auctions with a goal of
             | turning a profit by reselling the slots they buy. This
             | might make sense if Google sees large inefficiencies in the
             | ad market that are being taken advantage of by third party
             | resellers, at the expense of their customers. It's not a
             | great look, but it could be done in a way that is
             | aboveboard from a legal standpoint.
        
               | luckylion wrote:
               | That was the idea, wasn't it? Only they didn't make it
               | independent, but gave it access to data that they didn't
               | give to external bidders, because it would be less
               | efficient (read: less profitable) if it had to act on
               | public information.
        
       | goldforever wrote:
       | Only idiots believe this was accidental!
        
       | EastSmith wrote:
       | Google needs to be split in 4. Adsense, Adwords, Chrome and
       | Android. Thank you.
        
       | forgingahead wrote:
       | WSJ article on this: https://www.wsj.com/articles/googles-secret-
       | project-bernanke...
        
       | williesleg wrote:
       | Hacker news!
        
       | tgsovlerkhgsel wrote:
       | I know many like this sort of article, but I lost interest at
       | "Henry Adams, one of the most important thinkers in the 19th
       | century", because it promises that the article will blather on
       | with philosophical arguments for a long time before actually
       | revealing its point (and thus before showing whether it is worth
       | to spend any time on it).
        
         | andybak wrote:
         | It was one, maybe one and a half paragraphs before it got to
         | the point.
         | 
         | I only know this because after reading the meat of the article
         | and seeing your comment I went back to check.
         | 
         | I had noticed the waffle the first time around because I'd skim
         | read until I got to the relevant part.
        
           | ur-whale wrote:
           | > t was one, maybe one and a half paragraphs before it got to
           | the point.
           | 
           | Too much.
        
             | andybak wrote:
             | Not if you can skim read.
        
         | the_local_host wrote:
         | It was a single paragraph of historical context, I don't think
         | that's uncalled for.
        
         | ErikVandeWater wrote:
         | I think this heuristic is good, but specifically for
         | identifying bad writing. You, me, and almost everyone here
         | wants a straightforward account of what happened. The opening
         | sentence is tone-deaf to what the readers want to learn.
         | 
         | Also, the phrase "one of the most" is almost always indicative
         | of poor writing, even if it is far better than using a
         | superlative.
        
         | cletus wrote:
         | Similarly, I lost interest when I clicked a link to another of
         | the author's posts talking about the FTC declining to sue
         | Google in 2012 and it treated the claims of Yelp as gospel for
         | proof of Google's anticompetitive behaviour.
         | 
         | Yelp like to paint Google as the bogeyman because it distracts
         | from the fact that Yelp hasn't changed in a decade and the
         | product, well, sucks.
         | 
         | The core claim here seems to be that Google is giving itself
         | preferential pricing on impressions. Maybe that's.true? It's
         | not clear to me what the effect of that is. I would've liked
         | more detail about that and less grandstanding on the evils of
         | Google, honestly.
        
         | rhencke wrote:
         | Except.. it didn't blather on at all, and got right to the
         | point.
        
         | dang wrote:
         | Ok, but please don't post off-topic, shallow complaints to HN.
         | They get upvoted to the top of the thread (it's basically a
         | community bug) and then choke out interesting discussion.
         | 
         | I've marked this one offtopic now, which puts it lower on the
         | page.
        
       | srswtf123 wrote:
       | Every name that signed that document _ought_ to be criminally
       | charged, though like other commenters, I find it unlikely. TANJ.
        
       | gundmc wrote:
       | Discussed 12 hours ago with 40+ comments:
       | https://news.ycombinator.com/item?id=26767088
        
         | [deleted]
        
       | perl4ever wrote:
       | (2010)
       | 
       | "...during the five minutes it took to draft and send the email,
       | Google's Gmail email system automatically saved eight "snapshots"
       | of the email and put the copies into the author's draft email
       | folder. No action was required by the author. It was all done by
       | the auto-save.
       | 
       | When Google learned that it had inadvertently produced draft
       | versions of the email to Oracle, it requested that Oracle return
       | all copies. Oracle complied, but filed a motion to compel
       | production of the draft and final versions of the email. Oracle
       | successfully convinced the district court that the email was not
       | protected by any privilege, and the court ordered the production
       | of all versions of the email. Google sought a writ of mandamus to
       | have the district court's ruling overturned, but the Court of
       | Appeals for the Federal Circuit denied the writ."
       | 
       | https://www.millercanfield.com/media/article/200378_MCNewsle...
        
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