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Canadian autoworkers vote on tentative deal with Ford - CNN

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New York Times writer draws ire for blaming Biden’s economy for $78 airport meal - The Guardian

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Biden administration to ban medical debt from Americans' credit scores - CBS News

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I.R.S. Freezes Pandemic-Era Tax Credit Amid Fraud Fears - The New York Times

The tax agency is ramping up audits and criminal investigations into unscrupulous promoters of the Employee Retention Credit.

The Internal Revenue Service said on Thursday that it is freezing a pandemic-era employer tax benefit that has been a magnet for fraud and has cost the federal government billions of dollars as the agency looks for ways to stop the program from being abused.

The tax collector also said that it had referred thousands of claims for the so-called Employee Retention Credit for audits and had initiated over 250 criminal investigations involving nearly $3 billion in potentially fraudulent claims.

The moratorium on new claims underscores the high level of alarm within the I.R.S. that the tax credit has been misused and abused. Top I.R.S. officials have warned that the program is being exploited by unscrupulous “tax mills” — accounting firms and other companies that have been aggressively luring taxpayers who are not eligible for refunds to submit applications anyway. Many of these companies receive either commissions for submitting applications or a percentage of the refund and have been relying on faulty interpretations of the rules of the program to convince small business owners that they have a chance to get free money.

Businesses, including nonprofit organizations and churches, have been able to seek up to $26,000 for each employee on their payrolls if they can show that their operations were fully or partly suspended in 2020 or part of 2021, and report a significant decline in their revenues during that time. Before the moratorium was announced, they had until 2025 to file claims.

The I.R.S. is slowing the pace of refunds from applications that have already been submitted and urging taxpayers to consider withdrawing their applications if they believe that they might be ineligible. The program will remain frozen until at least the end of the year.

“We are deeply concerned that this program is not operating in the way it was intended,” Daniel Werfel, the I.R.S. commissioner, said on Thursday. “We believe you should see only a trickle of employee retention claims coming in. Instead, we are seeing a tsunami.”

At the onset of the pandemic in 2020, as large swaths of the economy went into lockdown, Washington set up various programs to help keep businesses and their workers afloat. Among them was the Employee Retention Credit, a tax benefit that was created as part of the initial $2 trillion pandemic relief legislation. The program offered businesses thousands of dollars per employee if they could show that Covid-19 was hurting their bottom lines and that they were continuing to pay workers.

In 2021, after Congress expanded eligibility, the Congressional Budget Office projected that the credit would cost the federal government about $85 billion over a decade — up from an earlier estimate of $55 billion. The I.R.S. said on Thursday that it had already paid out about $230 billion in refunds associated with the tax credit and that it had a backlog of 600,000 claims.

Mr. Werfel said that 15 percent of the 3.6 million claims for the credit that the I.R.S. had received since the program began were submitted in the past 90 days. The fact that the pace of applications has been picking up raised concerns within the I.R.S. that their previous warnings about the abuse of the program had gone unheeded.

Interest in the claims has been drummed up by aggressive marketing campaigns on television and radio and through unsolicited phone calls. Most of the improper claims are coming from so-called tax mills that the I.R.S. says have popped up in recent years to capitalize on commissions that they get for processing the credits.

“This great program to help small businesses has been overtaken by aggressive promoters,” Mr. Werfel said. “The program has become the centerpiece for unscrupulous marketing that profits from pushing taxpayers to claim credit that they may not be eligible for.”

The commissioner said that people or businesses who improperly claimed the tax credits could have to repay the money and face additional penalties. He said that the I.R.S. is designing a new settlement program for taxpayers who received credits that they should not have applied for and want to come forward voluntarily.

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Oracle disappoints market with revenue miss as Ellison hints at Azure database move - The Register

Software and hardware giant Oracle disappointed the stock markets with slightly less than expected revenue for Q1 of 2024, while CTO Larry Ellison teased a closer alliance with Microsoft and its Azure cloud platform.

Big Red posted $12.45 billion in sales for the opening three months of its fiscal 2024 ended August 31, up nine percent year-on-year. However, analysts had expected a figure of $12.47 billion. The disappointment was reflected in a 9 percent share price slide, wiping around $30 billion off the corporation's market value.

Q1 cloud revenue, which includes IaaS plus SaaS, was $4.6 billion, up 30 percent on last year, while SaaS revenue alone was $3.1 billion, up 17 percent. Operating margins hit 26 percent, up from 23 percent in the same period last year.

Founder and CTO Larry Ellison said Oracle's database business was set to make an announcement with Microsoft later this week. "We will be substantially expanding our existing multi-cloud partnership with Microsoft by making it easier for Microsoft Azure customers to buy and use the latest Oracle Cloud database technology in combination with Microsoft Azure Cloud Services," he said.

Oracle bought health records software company Cerner for $28 billion in June 2022, promising an expansion of its health sector of activity.

The move was followed by a round of job cuts at the electronic patient records company.

CEO Safra Catz told analysts Oracle would continue to try to make savings in its Cerner business.

"As we continue to benefit from economies of scale in the cloud and drive Cerner profitability to Oracle standards, we will not only continue to grow operating income, but we will also grow the operating margin percentage," she said on a call.

Ellison said Oracle was re-writing Cerner's Millennium software for Oracle Cloud Infrastructure, but that much of the code was generated through automation.

"With Cerner, the rewrite of Cerner, it's not armies of programmers that are going to be rewriting this. We are generating the new Millennium software using [low-code application development platform] APEX, and that's also going to save us a lot of human labor and generate higher-quality code and higher-quality user interfaces and better security, all at once," he told investors. ®

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Who’s Who in the Google Antitrust Trial - The New York Times

The federal government’s first monopoly trial this century will feature top tech executives, experienced litigators and an Obama-appointed judge.

A trial to determine if Google abused its monopoly in online search, which begins on Tuesday, is set to lay bare how the internet search giant cemented its power, featuring testimony from top tech executives, engineers, economists and academics.

The trial will unfold in U.S. District Court for the District of Columbia, where a core group of individuals will command the courtroom and direct the day-to-day legal strategies. Here are the key people to know in U.S. et al. v. Google:

From federal court

Judge Amit P. Mehta

Judge Mehta, who was appointed to the bench in 2014 by President Barack Obama, will referee and decide the case in the nonjury trial.

In more than three years of pretrial hearings, Judge Mehta hasn’t tipped his hand on his views of the case. In a proceeding last month, he narrowed the lawsuit by the Justice Department and states while preserving the core argument that Google maintained its monopoly in search through deals with smartphone makers that cut out competitors.

Judge Mehta, 52, was randomly assigned to U.S. et al. v. Google. He may be more familiar with Google than other federal judges, whose average age reached 69 in 2020, according to a study at the time by The Ohio State Law Journal. He received his law degree from the University of Virginia in 1997, a year before Larry Page and Sergey Brin founded Google.

Judge Mehta previously worked in private practice in San Francisco and Washington, focusing on white-collar criminal defense, complex business disputes and appellate advocacy.

For the plaintiffs

Jonathan Kanter, assistant attorney general for antitrust at the Justice Department

Jonathan Kanter, assistant attorney general for the Justice Department’s antitrust division, inherited the case from the Trump administration.Graeme Sloan/Sipa USA, via Associated Press

Mr. Kanter, the top antitrust official at the Justice Department, is overseeing the government’s case.

President Biden appointed Mr. Kanter, a longtime tech and media lawyer who received his law degree from Washington University in St. Louis, to the Justice Department in July 2021. Mr. Kanter is among a group of progressive Big Tech critics whom Mr. Biden has placed in top government positions for antitrust enforcement. He inherited the Google case from the Trump administration.

Mr. Kanter, 50, is also overseeing a separate antitrust lawsuit against Google in the ad tech market. Google has raised concerns that his history of representing its rivals, including Microsoft and News Corp, makes him biased, and the company has protested his involvement in the ad tech case.

It’s unclear how often Mr. Kanter will appear in court. Doha Mekki, the Justice Department’s principal deputy assistant attorney general, and Hetal Doshi, the deputy assistant attorney general for antitrust, have helped quarterback the lawsuit and will be in the courtroom daily.

Kenneth Dintzer, a deputy director in the civil division of the Justice Department

Mr. Dintzer, a 30-year veteran of the Justice Department, will give opening statements and is leading the government’s case in the courtroom.

A graduate of the University of Michigan law school, Mr. Dintzer, 59, was assigned to the Google case during the Trump administration. He has argued in pretrial hearings before Judge Mehta that Google destroyed instant messages “depriving” the department “of a rich source of candid discussions between Google’s executives, including likely trial witnesses.”

He has worked on antitrust cases in the past, including the Justice Department’s lawsuit to block AT&T’s proposed merger with T-Mobile in 2011. The companies eventually dropped the deal.

Philip J. Weiser, Colorado’s attorney general

Philip J. Weiser of Colorado is overseeing a coalition of attorneys general from 35 states, the District of Columbia, Puerto Rico and Guam.Andrew Harnik/Associated Press

Mr. Weiser is overseeing a coalition of 38 state and other attorneys generals that joined the Justice Department in its search lawsuit.

Mr. Weiser, 55, a former deputy assistant attorney general of antitrust at the Justice Department for the Obama administration, has been a vocal critic of big tech companies for stifling competition. After graduating from New York University Law School, he became a counsel to Joel Klein, the Justice Department’s head of antitrust during the agency’s Microsoft monopoly lawsuit in the 1990s. He didn’t work directly on the case but said in an interview that it had influenced him.

Mr. Weiser has picked Jonathan Sallet, a former deputy head of antitrust at the Justice Department, and William Cavanaugh, a lawyer at Patterson Belknap Webb & Tyler and a former Justice Department official, as the lead litigators for the states.

For the defense

Sundar Pichai, Google’s chief executive

Sundar Pichai, Google’s chief executive, is expected to testify.Jose Luis Magana/Associated Press

Mr. Pichai, the chief executive of Google, is widely expected to testify during the trial.

He joined Google in 2004 as a product management leader of Chrome and other tools, and was named chief executive in August 2015.

A measured and calm speaker who has at times been called boring, Mr. Pichai, 51, was largely unruffled when testifying in congressional hearings over content moderation and antitrust in recent years. That may serve him well in the trial.

Google’s founders, Mr. Page and Mr. Brin, aren’t expected to be called as witnesses. But the Justice Department and Google are likely to call other tech executives to testify, including Eddy Cue, Apple’s senior vice president of services, to discuss the company’s search deals with Google.

Kent Walker, Google’s president of global affairs

Kent Walker, Google’s president of global affairs, is overseeing the extended team of in-house and outside lawyers for the case.Christie Hemm Klok for The New York Times

Mr. Walker, Google’s president of global affairs and chief legal counsel, is overseeing the company’s defense.

Mr. Walker, 62, received his law degree from Stanford and joined Google in 2006. He led Google’s policy and legal strategy through an antitrust investigation by the Federal Trade Commission that began in 2009. The agency decided not to proceed with a lawsuit after the company agreed to some changes.

Mr. Walker is overseeing a big team of in-house and outside lawyers and will be in and out of the courtroom. Google’s daily legal representative in the courtroom, who has supervised strategy on the case, is Lara Kollios, a director in regulatory response and investigations.

John E. Schmidtlein, partner at Williams & Connolly

Mr. Schmidtlein, a co-chair of antitrust at Williams & Connolly, is Google’s lead lawyer in the courtroom.

Google has turned to lawyers like Mr. Schmidtlein, 57, who fought against Microsoft in antitrust cases two decades ago, to defend it in court. In 2002, Mr. Schmidtlein represented states that sued Microsoft for using its dominance in Windows software to block rival media players.

Mr. Schmidtlein, who received his law degree from Georgetown University, also has a long track record working for tech companies. This year, he helped Amazon defeat an antitrust lawsuit that consumers brought against its logistics practices.

Google’s litigation team also includes Susan Creighton, a partner at Wilson Sonsini Goodrich & Rosati who represented Netscape in the government’s 1998 antitrust suit against Microsoft, and Mark Popofsky, a partner at Ropes & Gray who was a senior counsel to the Justice Department in that suit against Microsoft.

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