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New York Times
30-04-2025
- Business
- New York Times
Musk's Parting Gift: The Construction of a Surveillance State
Elon Musk may be stepping back from running the so-called Department of Government Efficiency, but his legacy there is already secured. DOGE is assembling a sprawling domestic surveillance system for the Trump administration — the likes of which we have never seen in the United States. President Trump could soon have the tools to satisfy his many grievances by swiftly locating compromising information about his political opponents or anyone who simply annoys him. The administration has already declared that it plans to comb through tax records to find the addresses of immigrants it is investigating — a plan so morally and legally challenged it prompted several top I.R.S. officials to quit in protest. Some federal workers have also been told that DOGE is using A.I. to sift through their communications to identify people who harbor anti-Musk or -Trump sentiment (and presumably punish or fire them). What this amounts to is a stunningly fast reversal of our long history of siloing government data to prevent its misuse. In their first 100 days, Mr. Musk and Mr. Trump have knocked down the barriers that were intended to prevent them from creating dossiers on every U.S. resident. Now, they seem to be building a defining feature of many authoritarian regimes: comprehensive files on everyone so they can punish those who protest. 'This is what we were always scared of,' said Kevin Bankston, a longtime civil liberties lawyer and a senior adviser on A.I. governance at the Center for Democracy & Technology, a policy and civil rights organization. 'The infrastructure for turnkey totalitarianism is there for an administration willing to break the law.' Over the past 100 days, DOGE teams have grabbed personal data about U.S. residents from dozens of federal databases and are reportedly merging it all into a master database at the Department of Homeland Security. This month, House Democratic lawmakers reported that a whistle-blower had come forward to reveal that the master database will combine data from federal agencies including the Social Security Administration, the Internal Revenue Service and the Department of Health and Human Services. The whistle-blower also alleged that DOGE workers are filling backpacks with multiple laptops, each one loaded with purloined agency data. For years, privacy advocates, myself included, have obsessed about just how much of our data Big Tech companies possess. They know our location, monitor our browsing history and our online shopping — and use that info to make inferences about our interests and habits. But government records contain far more sensitive information than even the tech giants possess: our incomes; our bank account numbers; if we were fired, what diseases we have, how much we gamble. In 2009, the Georgetown law professor Paul Ohm envisioned the assemblage of a DOGE-like amount of data and called it the 'database of ruin.' 'Almost every person in the developed world can be linked to at least one fact in a computer database that an adversary could use for blackmail, discrimination, harassment or financial or identity theft,' Professor Ohm wrote. We are not all the way down the rabbit hole yet. It appears that DOGE has not yet tried to scoop up data from the intelligence agencies, such as the National Security Agency, which collect vast amounts of communications between foreigners — and often catch Americans' communications in their net. (That said, it is not encouraging that the head of the N.S.A. was recently fired, apparently at the behest of an online influencer who is friends with the president.) Even so, the creation of a huge government database of personal information about U.S. residents is dangerous and very likely against the law. In the 1960s, the Johnson administration proposed combining all of its federal dossiers together into a new national 'databank.' The administration said it just wanted to eliminate duplicate records and perform statistical analysis, but the public was outraged. The databank was scuttled, and Congress passed the Federal Privacy Act of 1974, which requires federal agencies to obtain consent before disclosing individuals' data across agencies. Of the more than 30 lawsuits that involve DOGE, several allege that its data incursions violate the Privacy Act. So far, courts have ruled in plaintiffs' favor in two of those cases, issuing orders limiting DOGE's access to data at the Social Security Administration and Department of Treasury. Both cases are ongoing. While the orders restricted DOGE from obtaining personally identifiable data, it remains unclear what happens with data that has been already collected. But the deeper problem is that the Privacy Act lacks real teeth. It did not give judges the ability to levy meaningful fines or easily halt illegal actions. It failed to establish an enforcement arm to investigate privacy violations in ways that courts can't. And since then, Congress hasn't been able to pass comprehensive new privacy laws or create stronger enforcement mechanisms. That makes the United States the only country in the 38-member Organization for Economic Cooperation and Development without a data protection agency to enforce comprehensive privacy laws. In the European Union, each country has a dedicated data protection authority that can conduct investigations, write rules, issue fines and even demand a halt to data processing. Without a privacy cop on the beat, Americans can submit a Privacy Act request to try to find out what data DOGE is holding about them, or hope that judges side with them in one of the dozens of lawsuits winding their way through court. Still, DOGE continues going from agency to agency grabbing data. To pick just two recent examples: Last month, DOGE bullied its way into the federal payroll records for about 276,000 federal workers, placing the officials who objected on administrative leave; and this month, a separate whistle-blower at the National Labor Relations Board came forward with evidence showing that after DOGE workers arrived, there was a spike in data being siphoned out of the agency. 'In no other country, could a person like Elon Musk rummage through government databases and gather up the personal data of government employees, taxpayers and veterans,' said Marc Rotenberg, a longtime privacy lawyer and founder of the Center for A.I. and Digital Policy, a nonprofit research group. 'There are many U.S. privacy laws. But they are only effective when enforced by dedicated privacy agencies.' We urgently need to modernize our approach to privacy by creating a federal data protection agency with robust investigative powers. But short of that, we still have time to stop the creation of the database of ruin. Congress could defund DOGE, or repeal Mr. Trump's executive order establishing it, or support legislation that the Democratic senators Ed Markey and Ron Wyden have introduced to update the Privacy Act to provide more meaningful fines and criminal penalties. This should be a bipartisan issue. Because once we create a database of ruin, none of us are safe from having our information — no matter how innocuous — used against us.
New York Times
21-04-2025
- Business
- New York Times
Quote of the Day: Tax Relief for Victims of Scams
'The scams are getting better and better. These people need some relief.' JOSEPH VOGEL, a Democratic legislator in Maryland, who introduced a bill to make losses to online scammers generally deductible at the state level. The I.R.S. last month released a memo on what federal tax relief might be available.
New York Times
18-04-2025
- Business
- New York Times
The Head of the I.R.S. Was Ousted
President Trump removed the acting head of the Internal Revenue Service, Gary Shapley, after less than a week on the job. The change was prompted by a power struggle between Treasury Secretary Scott Bessent and Elon Musk. Bessent, who oversees the tax agency, had complained that Musk had persuaded the White House to appoint Shapley without his knowledge. Bessent's deputy, Michael Faulkender, will replace Shapley, who had only been selected for the job on Tuesday. The previous acting I.R.S. leader, Melanie Krause, resigned after the Trump administration decided to use I.R.S. data to help deport undocumented immigrants. The agency has also been under pressure from Trump to revoke Harvard's tax-exempt status — a push that has deeply troubled current and former officials. The clash between Bessent and Musk escalated into a public feud last night. Musk amplified a social media post from the far-right researcher Laura Loomer, who had accused Bessent of colluding with a 'Trump hater.' Bessent is also a close adviser to the president, and his fears about the recent tariff-induced downturn in financial markets seemed to influence Trump. People close to the president said Trump had turned more cautious on policies that could stoke extreme volatility again. They said, for example, that he has for months been aware that trying to oust Jerome Powell, the Fed chair, could cause a downturn. For now, they said, Trump seemed persuaded to hold off. The president had pointed in particular to concerns about the bond market, which he called 'very tricky.' A Times analysis found that, as of August, Trump's personal investment portfolio had significantly more in bonds than in stocks. U.S. may abandon Ukraine talks, unless progress emerges Secretary of State Marco Rubio said today that the U.S. would end its efforts to strike a truce in Ukraine if there is not meaningful progress in negotiations over the next several days. 'If it is not possible to end the war in Ukraine, we need to move on,' Rubio said. Trump, who has at times blamed Ukraine for Russia's invasion, reiterated Rubio's comments later in the day: 'If for some reason one of the two parties makes it very difficult,' the president said, 'we're just going to take a pass.' In related news, Russian propaganda groups and other foreign adversaries have more room to operate now that the Trump administration took down many cybersecurity and disinformation guardrails, experts said. In other politics news: Autistic people pushed back against Kennedy's comments After the nation's top health official, Robert F. Kennedy Jr., said this week that autism 'destroys' children, many autistic people voiced their outrage. They also pointed out that they had done things Kennedy claimed were impossible, like hold a job, write a poem, play baseball and go on dates. 'How will our children survive if they are considered a tragedy?' said Kim Cristo, who said her 17-year-old daughter is 'essentially nonverbal' but has a fulfilling social life, loves music and does yoga and karate. Milwaukee is facing a lead crisis in its schools Four children in Milwaukee's public schools have been found to have been exposed to high levels of lead in the last six months. Investigators discovered seven schools with flaking lead paint and lead dust. Three school buildings have been shuttered, and officials said that more were expected to follow. But when city officials asked for federal assistance to help manage the lead crisis, their request was formally denied. They were told that the two C.D.C. lead experts who were expected to help guide the response had been fired. More top news The route that made Paul Revere famous On April 18, 1775 — this day, 250 years ago — a 40-year-old Boston silversmith named Paul Revere borrowed a horse and sped west toward Lexington to warn his fellow colonists of an emerging threat: The British were coming. A quarter-millennium later, we retraced Revere's route. We found that his midnight ride still resonates for many along his 16-mile route as a symbol of enduring American values, and a reminder of the heavy costs the country's founders were willing to pay in pursuit of freedom. John Cena is saying goodbye to wrestling John Cena is perhaps the last of the big-name crossover stars of professional wrestling, following the likes of Hulk Hogan and the Rock. So, it will be a big moment when he participates in what he insists will be his final WrestleMania event this weekend. For 20 years, Cena has been the W.W.E.'s ultimate good-guy star. But as he steps away from wrestling, Cena is trying out a new in-ring character: the bad guy. Dinner table topics Cook: For an Easter dinner without all the fuss, try this quick lamb ragù. Watch: 'The Ugly Stepsister' is a deliciously nasty reworking of the Cinderella tale. Read: Here are eight new books we recommend. Listen: On 'Popcast,' my colleagues looked at 13 songs you probably didn't know were hits. Travel: We have suggestions for a short trip to Orlando. Bargain: Haggling can be daunting to first-timers. Here are some tips. Compete: Take this week's news quiz. Play: Here are today's Spelling Bee, Wordle and Mini Crossword. Find all of our games here. A subtle gesture fans still swoon about after 20 years There's a passing moment in the 2005 film adaptation of Jane Austen's 'Pride & Prejudice,' when Mr. Darcy helps Elizabeth Bennet into a carriage. After he releases her hand and walks away, his fingers stretch outward like an impulsive, unconscious tic. For some fans, it's an iconic moment known as the hand flex. The subtle expression of longing wasn't meant to be a special moment, the director, Joe Wright, told us. But the hand flex has become perhaps the defining beat from Wright's take on the novel. There's even official merchandise now to commemorate the gesture. Have a stirring weekend. Thanks for reading. I'll be back on Monday. — Matthew Eli Cohen was our photo editor. We welcome your feedback. Write to us at evening@
New York Times
18-04-2025
- Politics
- New York Times
With Harvard Threat, Trump Tries to Bend the I.R.S. to His Will
In the years after President Richard Nixon enlisted the Internal Revenue Service to investigate his political opponents, Congress passed a series of laws to make sure the agency would focus on collecting taxes and not use its vast powers to carry out political vendettas. But President Trump has moved swiftly to suppress that independence in the first few months of his second term and, tax experts and former agency officials warn, return the I.R.S. to darker days when it was used as a political tool of the president. His administration has decimated the ranks of I.R.S. civil servants and moved to install political allies in their place. This week, he publicly called for Harvard to lose its tax-exempt status, an extraordinary attempt to enlist the I.R.S. in his feud with the wealthy research university. In the Oval Office on Thursday, Mr. Trump renewed that threat and suggested that several other universities the administration has accused of antisemitism could also lose their tax-exempt status. 'Tax-exempt status, it's a privilege, it's really a privilege and it's been abused by a lot more than Harvard, so we'll see how that all works out,' he said, also mentioning Columbia and Princeton. The I.R.S. is now weighing whether to revoke Harvard's tax exemption, as The New York Times reported earlier this week. Federal law bars the president from ordering the I.R.S. to conduct specific tax investigations. A White House spokesman has said the agency's scrutiny of Harvard began before the president's social media post. Mr. Trump said Thursday that he did not believe the I.R.S. had 'made a final ruling.' Transforming the I.R.S. and its tens of thousands of employees into political enforcers for the president — a doomsday scenario long feared by conservatives — would shake a foundation of American civic life. Tax experts and I.R.S. officials warn that the federal government may start to struggle to collect enough revenue if Americans start to believe the nation's tax laws are politically compromised and weakly enforced. 'We're dependent for collecting taxes on the good faith of the American people,' said Michael Graetz, a tax scholar at Columbia Law School. 'If the I.R.S. becomes politicized, and people feel like only one party is playing by the rules, then I would expect noncompliance would go up.' The I.R.S. declined to comment. The White House did not respond to a request for comment. Mr. Trump has long feuded with the I.R.S. Over the course of his business career, he aggressively tried to minimize his tax liability, at one point trying to declare losses on a Chicago real estate investment twice. As of last year, he still faced an active I.R.S. audit, his son, Eric Trump, confirmed to The Times, and Mr. Trump previously broke from tradition when he did not voluntarily release his tax returns when he first ran for president. During his first term, Mr. Trump saw the potential punitive power of the I.R.S., repeatedly raising the possibility of the agency conducting audits on his perceived political enemies, though his aides resisted such requests at the time. Two of Mr. Trump's opponents, Andrew G. McCabe and James B. Comey, did ultimately face audits, though an inspector general found they were randomly selected. Back in office a second time, Mr. Trump has been more aggressive in trying to consolidate power of the I.R.S. During his most recent campaign, he raised the idea of abolishing the I.R.S., and not long after winning re-election, he nominated Billy Long, a former Republican congressman and political ally, to lead the agency, abandoning the norm that commissioners stay on after a change in presidents. His administration has also pressured the I.R.S. to share data to help Immigration and Customs Enforcement deport people, overriding widespread concern among I.R.S. staff that doing so could violate taxpayer privacy protections. Several senior I.R.S. officials, including the acting commissioner, stepped down in the wake of that decision. In March, a Treasury official in March asked the I.R.S. to look into concerns from Mike Lindell, the pillow entrepreneur, about an audit he faced, according to people familiar with the matter and an email viewed by The New York Times. David Eisner, a Treasury official, wrote an email to a top I.R.S. official that 'a high-profile friend of the president,' Mr. Lindell, 'recently received an audit letter, from what I understand, his second in two years.' Mr. Eisner wrote that Mr. Lindell 'is concerned that he may have been inappropriately targeted.' I.R.S. officials did not act on the email, and instead referred it to the agency's inspector general, according to the people. But the message alarmed agency staff, as it appeared that President Trump hoped to use the tax collector to protect his friends and allies from normal scrutiny. A spokesperson for the Treasury Department said the request followed regular protocols. Mr. Trump is not the first president to try to use the I.R.S. to his liking. President Franklin D. Roosevelt's Treasury secretary, Henry Morgenthau, had the I.R.S. initiate an investigation into Huey Long, a senator from Louisiana who had been critical of Mr. Roosevelt's New Deal policies. The Nixon White House sent a list of 600 political enemies to the I.R.S. and asked the agency to look at their financial records and make their lives more difficult, actions discovered in the Watergate investigations. A difference now, historians and former I.R.S. officials said, is the brazen nature of Mr. Trump's requests. 'Whereas White House officials were pressuring the I.R.S. to revoke the tax exemption for nonprofit organizations during the Nixon administration, you didn't have the president going out there saying, 'I am going to pull the tax exemption for Harvard University,'' said Joseph Thorndike, a historian for Tax Analysts. 'That's a much more direct threat than has been employed in the past. In my view, that's a significant escalation.' In recent years, any hint of political influence at the I.R.S. has been met with fierce opposition. During the Obama administration, Republicans waged an aggressive investigation of the agency amid allegations that it was unfairly scrutinizing whether conservative groups were eligible for tax-exempt status. The backlash led President Barack Obama to fire the acting I.R.S. commissioner in 2013. (An inspector general later concluded that the agency had improperly targeted both conservative and liberal organizations.) It remains unclear how the I.R.S. will act now when it comes to Harvard. Revoking the tax exempt status of an organization would typically be the result of a lengthy back-and-forth process that could ultimately be appealed in court. 'The I.R.S. does not and should not take action regarding the possibility of impacting the tax-exempt status of any organization without conducting an appropriate examination,' said Charles Rettig, Mr. Trump's pick to lead the I.R.S. in his first term. 'There are many opportunities for resolution that would not result in the removal of the tax-exempt status of an organization.' Even the threat of losing tax-exempt status has alarmed organizations that may not have Harvard's resources to fight the I.R.S. in court. Mr. Trump on Thursday identified several other groups — including Citizens for Responsibility and Ethics in Washington, a nonprofit watchdog group focused on corruption — that he suggested should lose their tax exemptions. The president's language indicates he is intent on harnessing the agency's power, former officials warned. 'This is an administration that is saying it's going to get revenge,' said John Koskinen, who served as commissioner of the I.R.S. during the Obama administration and during the first part of Mr. Trump's first term. 'To weaponize the I.R.S. seems to me to be a very dangerous precedent.'
New York Times
17-04-2025
- Business
- New York Times
Trump Official Asked I.R.S. About Audit of ‘High-Profile Friend of the President'
A Trump administration official last month asked the Internal Revenue Service to look into concerns from Mike Lindell, the pillow entrepreneur and a leading denier of the 2020 presidential election, that he had been inappropriately targeted for an audit, according to three people familiar with the matter and an email viewed by The New York Times. David Eisner, a Treasury official, wrote an email in March to a top I.R.S. official that Mr. Lindell, 'a high-profile friend of the President recently received an audit letter, from what I understand, his second in two years.' Mr. Eisner wrote that Mr. Lindell 'is concerned that he may have been inappropriately targeted' and then signed off the message. I.R.S. officials did not act on the email, and instead referred it to the agency's inspector general, according to the people. But the message alarmed agency staff that President Trump hoped to use the tax collector to protect his friends and allies from normal scrutiny, concerns that have only grown as the Trump administration clears out agency leadership and pushes it to carry out Mr. Trump's directions. Neither a Treasury spokesperson nor Mr. Eisner immediately responded to a request for comment. In an interview, Mr. Lindell said that Mr. Eisner's message reflected a mix-up. Mr. Lindell said he had reached out to Treasury officials about why companies should have to amend previous tax years' returns after receiving the employee retention tax credit, a pandemic-era benefit. 'It's nonsensical government waste and I really want to try and get this rectified,' he said. Mr. Lindell said he had also faced an I.R.S. inquiry over when he could write off the cost of a Covid-19 drug he tried to sell during the pandemic. 'It's pending their decision,' he said. 'The I.R.S. is very slow in making the decision.' Mr. Lindell met with Mr. Trump at the White House earlier this year. He has faced several defamation lawsuits stemming from his claims that the 2020 election was stolen, and federal agents seized his phone in 2022. Beyond shielding Mr. Trump's friends, the Trump administration has pushed the I.R.S. to investigate his political targets, including by asking it to revoke Harvard's tax-exempt status. The administration earlier this month also enlisted the I.R.S. to help Immigration and Customs Enforcement deport undocumented immigrants.
