New Cornell University 7 Case Details Expose A Lot & Candace Owens' Lawsuits Are Looking Bad
PDS Published 09/30/2026
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The Cornell University seven case just exposed to widespread problem in New York.
You also have people arguing over what the newest texts, details, and updates really you've got Candace Owens now being sued by a man she allegedly accused of being Charlie Kirk's real a plane headed to Israel suddenly plunged 18,000ft after one pilot stabbed another.
And what some are calling a nine over 11 style and you've got a 17 month old ending up on a ventilator and dialysis after drinking raw milk, highlighting a growing blind we're talking about all of that.
And even more on today's brand new Philip DeFranco show. You daily dive into the news, starting with this. We now have updates around the horrific Cornell University gang rape allegations.
And with that, depending on where you go online, you are seeing very different reactions, right.
With the latest update sparking heated debates about accountability in the legal process. Right.
This is all connected to earlier this week when I talked about how a woman identified as Jane Doe is suing Cornell in seven current and former members of the Chi Phi fraternity over the alleged hours long assault that you first reported to Cornell police two years and while at the time no arrests were made, two of the accused fraternity members got expelled and the others got off with suspensions and essays.
This week you had prosecutors announcing that the reopening, the investigation and today we're going to start is with the new details from Doe's 2024 police interview transcript.
Because it includes the quote from Doe saying, I can say with 100% confidence I was with her, then also saying at the time that she was physically hit very, very a big thing is that this comes as Tompkins County Da Matthew Van Houten has been claiming that what dose said to the police was totally different from what she said in the right, saying that she didn't initially say she was raped.
And so you had a lot of people asking, okay, well, was he just straight up what you have been responding in an interview this morning claiming that this is actually the first time he's hearing that That wasn't information that I had, first of all. Second of all, that that is a legal conclusion.
If she had said those words, we certainly would want to have explored that more so for many it was Marianne that that statement wasn't investigated.
And allegedly it never made its way to the D.A..
Right then on top of the transcript, there are also new excerpts of alleged text between Doe and one of the defendants from two days after the alleged Right.
In those you have the man apologizing for, quote, how things went down and for being too intoxicated to, quote, shut it down and kick people out before it got way out of and well with this you had no allegedly writing back that none of the sexual stuff was illegal.
Her lawyer noted that she had been intoxicated to the point of incapacity, and was still in denial and trying to figure out what happened.
It's also noted that Doe reportedly said that her memory was super clouded according to the text, she also said that next time they hang out, quote, leave out the extra 5 billion men in seemingly indicating there was a group of men and drugs that she wasn't on board and so then with all this, you have a lot of people saying, this girl has failed at pretty much every Right in saying that includes everyone down the line by the 57 men and the Snapchat group chat that included the message Free Pussy Upstairs by Cornell, and also actually by New York state Because one of the things that you have this case doing is shining a light on a New York state law that some called the voluntary intoxication and that's because this law actually makes it very difficult to bring charges against someone who's had sex with a person who was, quote, voluntarily intoxicated.
Someone who consumed alcohol or drugs on their own before the attack happened.
You've got a lot of people saying that's essentially victim blaming, saying that it's their fault for drinking or doing drugs and not the attackers it's also a loophole that the Da Van Houten has been referencing as he tries to defend himself for not investigating this or charging anyone two years looking into it.
This is actually a law that New York state lawmakers have been trying to change for years, but the proposals just haven't gone so with this, you've got one state assembly member who supports changing the law, saying that the Cornell case is exactly the type of situation this legislation would address, adding it's just outrageous. And it makes me angry that we haven't passed this yet.
It would at least ensure that the survivor would get justice.
Well, neither Governor Kathy Hochul hasn't commented on the loophole, she is calling for outside counsel to review Cornell University's response, reporting out in a statement there are serious questions about Cornell's campus culture and its systems for prevention, reporting and you also now have the mayor of Ithaca, right where Cornell is located, calling for a ban on student events and special event permits.
And in general, this week, you're seeing all kinds of passionate responses to the situation, including a very unsettling one that a Cornell professor, Kate Mann, wrote for The with her seeming to expose just how bad rape culture is a Cornell and how nothing's really done about it.
Writing.
A professor at Cornell, I have had many, many victims in my office confiding in me with their experiences of sexual assault and saying many didn't even try to report them to the police or the university.
And for those who did, the experiences and outcomes have rarely been positive. Again, this is someone who is employed by Cornell.
And she students who commit infractions like plagiarism are often punished more harshly than the male students directly responsible for making the campus dangerous for female her claims.
They appear to be backed up by a report revealing that more than 1200 incidents of sexual assault, dating and domestic violence and stalking were reported to Cornell's Title nine office from 2018 to
And with that quote, most of those found responsible received minor sanctions that allowed them to remain on campus, such as probation or but then also with this, it's not just one universal reaction out right on the other side of this situation, you're seeing responses from people like The View, Sunny Hostin, for example.
Under New York law, voluntary intoxication or drug use that merely impairs judgment does not legally constitute an inability to consent to sexual activity.
The pictures of these young men who have not been charged, not been adjudicated, are being plastered all over the internet.
I think people are reporting this story inaccurately. I think they're reporting it unfairly.
And while this is something that we have to take very seriously, there is no way, according to her statement in 2024, that any prosecutor would have brought.
But she was and then in addition to those kind of arguments, you have other people arguing that, well, a lot of the complaint details bad behavior.
It shouldn't necessarily be characterized as gang rape because of details like, quote, she liked male one and agreed to a there are things like when he then allegedly proposed a foursome.
She said no, and it didn't right.
And so depending on where you go on the internet, you're seeing a lot of different people having a lot of different arguments than other people replying, arguing back and but in general, right now you're seeing people noting things like Jane Doe appears to be the only one that's actually had to deal with consequences thus But for now, that's ultimately where we are waiting to see what other information comes out, what happens with the investigation?
Also do we hear more from the defendants or see what's happening with Right on that front, there's been a report of one of the defendants, Diego's Arabia, getting fired from Wells Yeah.
With all this, I really would love to know your thoughts on how all of this is playing out right But then from that we jump to other news where you have this other investigation.
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Into what went wrong with this insane flight to when you had Boeing executives here in the news at one of their 737 Max eight jets nosedived 18,000ft.
This morning, I can only imagine they were like, oh, no, not but then we could maybe picture a collective sigh of relief over there when they found out that it wasn't their fault for once.
Or at least it does not seem like Boeing's fault. Or because diving into the specifics of what we know right now.
You had an Emirati flight that was headed from Dubai to Tel Aviv, carrying 174 passengers, nearly all of them and then at around 2.5 hours into the trip, as they were passing over Saudi Arabia and still pretty far from Israeli airspace, passengers heard or with one telling channel 12.
Suddenly I heard a struggle. Something like a fight coming from the cockpit.
The door was slightly ajar and I saw an attempt to push someone out.
Then three Israelis who were sitting behind me came to see what was happening, and the plane suddenly went into a very steep dive, nose down with a very intense and you had flight trackers showing the aircraft plummeted from 34,000ft to 16,000ft in less than two as people started screaming, panicking, one told the time of Israel it felt like, that's it, it's over.
September 11th is happening Meanwhile, you're the plane's transponder issuing a distress signal for a general emergency.
But then seven minutes later, it switched the code to unlawful interference, which is usually stuff for things like hijackings or hostage so.
Reportedly Israel was scrambled fighter jets, but on board the plane was still pure chaos, With witnesses saying flight attendants were really not helpful, saying, quote, they were hysterical, they didn't really know how to handle the situation.
So what are they?
A handful of men that were sitting towards the front, took matters into their own hands and broke into the or with one onlooker saying that when the door is open, there was a lot of that's been seemingly confirmed by videos floating around on social media.
And you had multiple people covered in blood, with at least one person on the floor wearing a pilot's that appears to be because it's been widely reported that this all started when the copilot stabbed the captain with the knife, hence the struggle the passengers heard in the Right.
And then once the stabber was subdued, a woman said that a doctor and a nurse on board started tending to the wounded right.
Then, even though it's still a little unclear who these guys were, it appears that two relief pilots entered the cockpit and took control of the them, then diverting the flight to an airport in Saudi Arabia where it landed while the airline fly Dubai, then sent a couple of rescue planes to pick up all the evacuated passengers, that didn't go over so right in that reportedly because some of the people, they just didn't feel comfortable getting back on a plane with the same airline.
And actually now they're not the only ones that are looking at flydubai suspiciously. Right.
You're actually seeing a lot of people pointing the finger at them for the security laps that led to this for context, fly Dubai was the first airline to offer commercial flights from Dubai to Tell Aviv in 2020, after Israel and the UAE normalize relations.
They're actually only one of a few airlines that are still going to Tel Aviv after October 7th, 2023.
So according to an Israeli transportation Ministry source who spoke to the Jerusalem Post, part of that deal with Israel is that flydubai can only have pilots from countries with normalize relations with the but according to the reports that we're seeing the copilot who allegedly stabbed the captain is from Oman, which is a country that is not so you now have Israel's transportation minister calling for all fly Dubai flights entering and exiting the country to be and as of right now, you know, we're still waiting for more information regarding the motives of the attacker. While you have them considering multiple possibilities.
And Israeli official told Haaretz that authorities are treating it as a terror and you've got Benjamin Netanyahu claiming that evidence indicates the copilot apparently intended to crash the.
You also had as far right cabinet members going even further, with the defense minister calling it an attempted jihadist terror then you also had their national security minister.
We received another reminder today about the naive conception that our enemies value life and that we should have right.
And then with this, you have the government supporters trying to claim credit for predicting this event because of a statement that Netanyahu made yesterday with him warning that ahead of the elections, our enemies will try to attack of course, there that's pretty vague.
And you had the opposition leader saying that during a security briefing with Netanyahu this morning.
Nothing resembling the plane attack was even the leader of the Democrats expressing contempt for the disgraceful attempts by the, quote, Hamas is an asset government to play cheap politics at the expense of this heroism.
For now, we're gonna have to wait to see what other information and details come out, whether it's from the investigation or somewhere and then there's even more we got to dive into in just a minute.
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But then diving right back into the news.
Candace Owens is now facing another lawsuit over conspiracy theories about Charlie Kirk's or with this one being filed by Robert Hill, who's a private citizen who is in the audience.
When Charlie was killed at Utah Valley University, and Candace has allegedly told her audience that he contributed to Kirk's assassination, had ties to malicious foreign actors, and was connected to a Gothic and communist underground, which she associated with the and specifically Candace, said that she believes Robert is the man in the photos released by the FBI depicting the suspect, who officials have since claimed is Tyler.
And as for how her theory came to be Robert and his friends, they were standing about 15 to 20 yards away from Charlie's stage.
And after they heard the gunshot, they ran to his friend's grandmother's house near his friends relative, who's a former member of the Utah House of Representatives, was also at the event and went to the grandmother's house as then the day after the TMZ posting footage of the alleged shooter walking to and from the campus before and after the and in those clips, the suspect walks in front of and behind the grandmother's at around the same time, the FBI also released photos of the suspect on and then a few days later, Robert and his friends went on a walk in the grandmother neighborhood and in parts of campus that were on the shooter's route and had been portrayed in footage that the FBI had publicly they apparently didn't do this to investigate or even fully retrace our steps.
But one friend did take selfies of the group during their actually posted side by side, matching their location to the photos of the with Robert apparently not knowing the photos were going to be posted in this context, and the images ended up being something that Candace really latched on because as you possibly know, or maybe you've seen us talk about the fact that Tyler Robinson has been charged and is going to face trial for this murder has not stopped Candace from pushing tons of other reporting to Turning Point USA Israel saying that Robinson is just a patsy and questioning if he's even the person in the images shared by law.
And so when she saw these images of Robert and his friends in the weeks after Charlie's killing, she said things like to know everybody in this photo is this is just interesting.
Like, you guys are in the staircase and posting side by side, like they put the side by side photos of them in the staircase.
And I just was like, I need to just know more about you, and I need to know more about these two individuals who I couldn't find in his friends list.
And in one episode she says of Robert he kind of resembles, certainly more so than Tyler Robinson does, the blurred image of the individual that was coming up the stairs.
I couldn't look away from that. Receiving to suggest that he is in fact the suspect in those the.
According to the lawsuit, at the exact time that the suspect was photographed in the stairwell, video footage shows Robert already in the crowd waiting for Charlie in different right.
So arguing it is physically impossible for him to be the individual in the stairwell Or Candace still made other claims, right?
Later in that episode, she appears to suggest that he came from overseas and is involved in some sort of Gothic Take a look at this.
I'm going to show you the side by side of this individual, and I am certain can't say 100% okay, because we need to find this person's name.
But this is a match, okay? The ears, the chin, just everything about this individual is a match.
But he is as of yet identified as a Gothic unidentified pardon as a Gothic person. But with this, you're the lawsuit doing that.
Robert is a member of the Church of Latter day and saying he is not and never has been associated with any Gothic underground community.
And even the website that she's looking at states that this was a themed costume and dance she still kept chasing this down repeatedly, and in later episodes she names him and suggests that he was using a false identity and that he was part of suspicious foreign or with people, apparently even placing bets on prediction markets that Robert would be named as the real shooter.
Then the lawsuit also claims that Candace was given information proving Robert's innocence, but saying she ignored even alleging in later episodes of her podcast, Candace tacitly admitted that the man in the photos is in fact Tyler Robinson, but did nothing to clear Roberts and so because of all this, he claims he suffered a ton of reputational harm and fears for his safety as a result of her claims, with the lawsuit multiple individuals have publicly called for violence against him in comment sections and in standalone social media posts, including statements advocating that he be and he also claims that he had to hide out for weeks after Candace first identified him leaving the state of Utah and even applying for refugee status in another country at a fear for his Right.
And that is, he and his family members apparently have been docks. His home and car were apparently vandalizing.
He wants to get married to his girlfriend, but he fears doing so would put her in harm's you've got him suing Candace Owens for defamation, implied defamation and intentional infliction of emotional distress, seeking damages to be determined at right now, notably with all this, Robert isn't the first person to say his life's been harmed by Candace's conspiracies.
Richie's already been sued by Charlie's former head of security for similarly implicating him in Charlie's right.
And actually, you just had Candace being discussed in this major piece from Vanity Fair that they just published about Erica with that, including interviews with Erica as well as with Charlie's and Candace, of course, it's been well documented.
She's repeatedly criticized Erica for just about everything. Right.
The way she's led TP, USA, the way she's grieved and again, often linking her to Charlie's and so with all this, you had Vanity Fair only time Katherine Kirk, Charlie's mother, cries, is when she starts talking about how upset her son would be over the way his wife has been treated on social adding though she says she's desperate to remain a private citizen, Catherine is also coming to terms with the fact that even her silence has been co-opted by conspiracy theorists who claim there's a rift between Charlie's parents and writing Catherine insists that none of this is true, and then she Erica and I have through the trauma, grown We knew Charlie in a way that no one else.
And while Erica, she didn't directly comment on Candace's actions regarding the trolling and critiques that she's received, she said, what's been the most interesting is how savage women are to saying people can see the sparkly suit on stage, but have no idea the fact that that was the only thing that saying, everyone gets a half and then also you had Vanity Fair noting that Candace has driven a wedge in Turning Point and as a result, within MAGA for her part, Candace, while she hasn't publicly responded to this lawsuit, at least as I'm filming this she did shoot back at some of Erica's remarks in the Vanity Fair piece, saying that she laughed out loud at some of it's without a doubt this is going to be a place where we have to keep eyes on but then jumping from that, we then have another subject that's eating maggot alive.
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And that is actually Trump himself. Because this could be the end of Ken Paxton's campaign. He might have just given Democrats a Senate seat in Texas.
And that's because you've got The New York Times now publishing an audio recording where you can hear Paxton saying that Trump's random midterm convention, it hurt his campaign for U.S. Senate in Texas.
According to the Times, this audio was given to the outlet by an attendee at a small private fundraiser for conservative donors and lobbyist last week. And I warned you like the the bite. It's super muffled.
It really sounds like the the person was recording from their pocket. But the group Democratic wins. Media was able to post a slightly clearer version on Twitter.
You feel like and all these guys know. But do you feel like needs a little bit of a jam?
So to be honest with you, the numbers when we did that convention, which was our numbers, everybody's got by now.
Yeah. Not good. We're still needed to turn.
Now with this, you had a senior Paxton adviser seeming to claim that the bite was fake, saying this is more manipulated nonsense from the New York Times. Create a story that doesn't exist.
But also, two people who attended the events said that they remember Paxton being asked this question and when. Remember that he gave a response about the negative consequences of Trump's midterm convention.
Which was highly unusual off your convention that Trump had pushed forward to get Republicans fired up about the midterms.
But it all ended up just being this weird big celebration about him and his presidency. Right.
So with this clip, it's absolutely massive because Paxton is he's this longtime Trump loyalist who centered his whole primary campaign around the idea that he was a far right MAGA alternative to incumbent Senator John Cornyn.
Trump himself even endorsed Paxton in his runoff with Cornyn.
And that's even after party leaders in both Washington and Texas wanted to stick with Cornyn for a whole slew of reasons.
For one, Gordon would have the incumbency advantage in a general election against James Talarico.
So by running Paxton against him instead, that gives up a huge asset also beyond that, Paxton's political tenure as Texas attorney general. That's been riddled with scandals that we've even covered on the show.
Right.
In 2015, he was indicted on felony securities fraud, with him reaching an agreement nine years later to have the charges dropped in exchange for paying nearly $300,000 in restitution.
He was also literally impeached by the Republican controlled Texas House of Representatives back in 2023 after eight top aides accused him of bribery and abuse of office to help a campaign donor and upgrade a house for his mistress.
You then had the Republican state Senate later acquitting him on all 16 articles of impeachment.
You know, since Paxton won his primary, Trump has repeatedly praised him and urged Texans, hey, get out there and vote for him. In November.
And Trump even recently said that he thought that his convention actually helped Paxton.
I think the fact that we had such a successful convention really helped Ken Faxon. He was a big part of it. And, look, I mean, he was a great attorney general.
Right to that point, it's not only Paxton's trying to distance himself from Trump. In fact, it's the exact opposite. He's always closely aligned himself with Trump. It's been the centerpiece of his campaign.
He's even reportedly accepted $20 million from Trump super PAC.
And he chose to be featured prominently at Trump's convention, even when you had other Republicans deciding not to go or downplaying their involvement amid rising concerns that the event wouldn't actually be helpful because Trump's approval ratings suck.
And so for many, it seems absolutely wild that he's blaming Trump, especially because Paxton's campaign was already struggling before Trump's convention.
Paxton, a Republican, has been narrowly trailing Talarico in recent polls in Texas, though he does remain within the margin of error.
And while you had some Republican strategists drawing comparisons to the 2018 race when Beto O'Rourke garnered sweeping support but then still lost to Ted Cruz.
You've got analysts noting that there are a key number of differences, right. There's no incumbency and vantage in this race. Paxton has way more baggage than Cruz.
Trump is now also polling way worse in Texas. Now, right?
In 2018, more Texans approved than disapproved of the job Trump was doing by a margin of 48% or 45%, respectively.
But just as recently as last month, 51% disagreed with the job that he was doing, while just 43% approved. And you've got Democrats appearing to be turning out at higher rates.
Right.
2.32 million Texans voted in the Democratic Senate primary this year, while 2.16 million voted in the Republican Senate primary.
That becomes especially notable because the numbers were reversed in 2018, with Republicans outvoted Democrats by nearly half a million in the Senate primaries.
Then beyond all that, Paxton's getting a lot of heat right now because so far, he's refused to debate Talarico.
At how the Rico, he says he's accepted at least three debates, including one on Fox News. But Paxton, he hasn't responded.
That's actually a very big deal in Texas, because every Senate race there since 2002 has featured a debate before the general election, meaning that Paxton would be breaking a nearly quarter century precedent.
Wall that said, one of the places that Paxton does have Talarico beat is actually just in sheer cash.
According to reports, Paxton is currently outspending Talarico by a margin of 5 to 1. And you've got analysts saying this race is going to demolish Texas.
His record for spending in a Senate election. The firm Ad Impact. They're projecting the Paxton Talarico race. It is going to hit a $440 million spend and that number.
It is not just a big number. It is more than double the previous record of 210,000,000 in 2024.
So actually this ends up being one of the single most expensive Senate seats in US history, period.
But now with this audio leak, you have some experts saying that Paxton's funding, it could start to dry up, regardless of whether Trump himself even responds, for example, one analysts writing whether or not this draws his direct public ire.
Paxton needs Trump.
Trump aligned super PAC money and diehard Trump voters to pull off the win saying this could jeopardize all that.
But hey, we're going to see if Trump responds and also how all of this plays out in November because, oh my God, the election is just about a month away.
And so again, your friendly daily reminder, none of the polls matter if you and people you know do not vote. Go to vote.org, check your registration.
Come up with a voting plan.
Bully your like minded friends in a nice way to make sure that they do the same And get out and vote for the change you want to see and or against the change or the, status quo that you do not want to see.
Let's all look forward to a day where we were successful in making politics boring again.
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And then we've got even more we got to dive into after a quick break with our sponsor. Right.
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You need to know quickly before I let you go.
Starting with the news that raw milk, you know, it's being pushed by many, including many creators on this platform is this natural miracle cure.
But in California, it just put a 17 month old baby girl on a ventilator, getting dialysis and fighting for her life.
And then, according to this bombshell ProPublica investigation, regulators didn't do a thing to punish the unlicensed seller.
Emily Harris was looking for some sort of fix for her 17 month old daughter's stomach issues.
Even Facebook posts leading her to Courtney Baker's unlicensed dairy farm, Moonlight Ridge, or with Baker advertising. Her goat milk is clean and tested, so Maris bought it and gave it to her little girl for nearly six months before symptoms started to show. Which shouldn't be shocking.
Unpasteurized milk can be a bacterial minefield and Brooklyn quickly contracted a rare strain of E. coli, and her kidneys failed. And actually, she wasn't alone.
A six year old girl also drank the same goat's milk and ended up in the same pediatric intensive care unit needing blood transfusions.
And when Baker was told, she admitted she didn't even know how to test for E. coli, thinking that it only came for me. Right. And that is when California agricultural investigators stepped in.
And so they pretended to be a buyer on Facebook, and they got the unlicensed dairy to sell the milk, which carries a $10,000 fine and up to a year in jail.
And a key thing is that when investigators confronted Baker, she claimed the milk was for pets, which is a loophole in California law.
But that is despite there being text which make it clear that she knew that kids were drinking the milk. So just asking mares how her baby was handling the milk. They came back later for a sample.
And Baker handed them a gallon that she claimed was gathered the night before from 11 goats.
The investigators had no way to confirm that as they weren't allowed on the property. Of course that test negative for any pathogens.
And so in the end, despite text message admissions, hospital evidence and Facebook post selling raw goat milk from a clean tested herd, regulators still didn't pursue charges.
But it looks like they just thought the process would be too costly and lengthy and instead just issued a cease and desist.
As that supervising special investigator put it, the immediate goal here is to get the goat farm to stop all milk related product manufacturing and keep the community safe.
Then, of course, you've got questions about whether letting an illegal dairy that nearly killed a pair of kids to get away free and clear, is really keeping the community safe.
But hey, in the meantime, it's just a big reminder that raw milk, meat, really any raw animal product carries a huge risk of some pretty serious diseases. If you want to risk it, hey, that's your life. That's your thing.
But anyone else that's telling you that it's safer, a cure all. They are full of shit. There are risks for you and especially your kids.
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Then also in the news, you've got a judge, you just put Mayor Mamdani his new second home taxes on ice, claiming that he mishandled the rollout process and has to start back at square one.
That's huge, because these taxes were seen as a way for Mamdani to make good on his pledge to tax the rich.
They apply to high market value homes that aren't being used as the owner's primary residence. But also that's where a lot of the problem comes in. Right.
Because you had Judge Wayne OSI saying that it was Danny's responsibility to establish people's residency status with us, but instead, he claim that Mamdani, quote, unlawfully put that burden on the homeowners themselves.
And then with that you the lawsuit claiming that his team stirred up confusion by sending out notices to around 17,000 New Yorkers, warning that their properties could get hit with these new taxes.
But apparently they didn't check whether those people were living in those properties full time beforehand.
And you also had them putting out a list of almost a million properties that could be affected by this, which included the property owners names. And obviously, there were a lot of people that weren't happy with that either.
So the judge ordered them to take that list down and replace it with a list that doesn't include the names.
And they also have to avoid their previous notices, narrow the list of recipients and send new ones that outline how they determined each property would be subject to the tax.
And so with this call, you were the lawyer representing New York homeowners, saying city Hall botched this rollout and should have just admitted the errors and fixed its own mistake. Instead of wasting time and taxpayer dollars by fighting it in court.
But you also Mamdani seem not backing down, saying the ultra wealthy are fighting in court to avoid paying their fair share, saying they have filed a lawsuit after lawsuit or protect their privilege, and we will not back down.
We're already set to appeal this. And if the appellate court side with them, the rollout will continue as planned.
If not, they're gonna have to figure out how to get this all done on a super tight timeline. Since the first tax bills usually start being sent out in November. Right.
Then on top of all that, you have other people in separate cases trying to push back on the tax altogether, saying that it goes against the state and federal constitution.
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Then finally you've got the news that Meta just saved nearly $4 billion on its federal tax bill by telling the IRS that its massive, multibillion dollar AI data centers are actually just a giant experiment that could fail.
But also isn't, like every business decision, a giant experiment that could fail. Why do I have to pay taxes?
That's the real question. Yeah.
According to a report from the New York Times, MIT has been exploiting a 1980s federal research tax credit for scientific innovation.
And the way they're apparently doing this is by classifying commercially available Nvidia microchips and entire data centers as experimental pilot models, rather than standard business assets.
This loophole maneuver made Meta the single largest beneficiary of the tax break among all publicly traded companies. Right. In this federal tax shield, it comes alongside local tax breaks.
Big tech builds these facilities, they pitch local municipalities on promises of tax revenue and high paying jobs.
But actually in practice companies demand heavy tax exemptions while bringing in very few permanent staff and heavily straining local energy and water grids.
Now you had Meta defending the practice, stating that it invested $57 billion in research last year alone.
And they're simply utilizing tax incentives established by Congress to encourage domestic tech investment.
But if all of that sounds too good to be true for Meta, even they think it might be right in a securities disclosure, you had them calling using the loophole in this way, an unrecognized tax benefit.
Which feels very close to labeling this free money question mark, here's the thing.
Given how much the current administration loves AI, it's entirely likely Meta's gamble. It's going to pay off.
That's adds they're not the only one with Apple, Amazon, Alphabet and Microsoft all reporting similar tax benefits.
All of this has led many people, regardless of left versus right, wondering, hey, in our communities, if we're not getting good tax revenue from AI data centers or good jobs, and what are we actually getting?
Just the environmental and electrical cost increases, Doesn't that seem like the single worst trade of all time?
And that, my friends, you beautiful bastards, is the end of your Wednesday's but I also have a lot more that you can watch.
That's just a click or thanks to today's brand new episode of Crashing Out with myself and Alex Pearlman diving through the news. Given opinions. Definitely check it out.
Definitely subscribe if you haven't already. Think we're about to pass 100,000 subscribers on YouTube, which is amazing. Whatever you do, let me just say thank you for watching. I love your faces.
And I'll see you right back here tomorrow.
