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Tag: backlash

  • Explaining California’s billionaire tax: The proposals, the backlash and the exodus

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    The battle over a new tax on California’s billionaires is set to heat up in the coming months as citizens spar over whether the state should squeeze its ultra-rich to better serve its ordinary residents.

    The proposed billionaire tax that triggered the tempest is still far from being approved by voters or even making the ballot, but the idea has already sparked backlash from vocal tech moguls — some of whom have already shifted their bases outside the state.

    Under the Billionaire Tax Act, Californians worth more than $1 billion would pay a one-time 5% tax on their total wealth. The Service Employees International Union-United Healthcare Workers West, the union behind the act, said the measure would raise much-needed money for healthcare, education and food assistance programs.

    Other unions have piled on billionaires, targeting the rich in Los Angeles.

    A group of Los Angeles labor unions said Wednesday that it is proposing a ballot measure to raise taxes on companies whose chief executive officers earn 50 times more than their median-paid employees.

    Here is how this fight could continue to play out in the Golden State:

    Who would be affected?

    The California billionaire tax would apply to about 200 California billionaires who reside in the state as of Jan. 1. Roughly 90% of funds would go to healthcare and the rest to public K-14 education and state food assistance.

    The tax, due in 2027, would exclude real estate, pensions and retirement accounts, according to an analysis from the Legislative Analyst’s Office, a nonpartisan government agency. Billionaires could spread out the tax payment over five years, but would have to pay more.

    Which billionaires are already distancing themselves from California?

    Google co-founders Larry Page and Sergey Brin

    Google is still headquartered in California, but December filings to the California Secretary of State show other companies tied to Page and Brin recently converted out of the state.

    One filing, for example, shows that one of the companies they managed, now named T-Rex Holdings, moved from Palo Alto to Reno last month.

    Business Insider and the New York Times earlier reported on these filings. Google didn’t respond to a request for comment.

    Palantir co-founder Peter Thiel

    Thiel Capital, based in Los Angeles, announced in December it opened an office in Miami. The firm didn’t respond to a request for comment. Thiel recently contributed $3 million to the political action committee of the California Business Roundtable, which is opposing the ballot measure, records provided to the Secretary of State’s Office show.

    Oracle co-founder and Chief Technology Officer Larry Ellison

    Years before the wealth tax proposal, Ellison began pulling back from California, but he’s continued to distance himself farther from the state since the proposal emerged.

    Last year, Ellison sold his San Francisco mansion for $45 million. The home on 2850 Broadway was sold off-market in mid-December, according to Redfin.

    Oracle declined to comment.

    DoorDash co-founder and Chief Technology Officer Andy Fang

    Fang, who was born and raised in California, said on X that he loves the state but is thinking about moving.

    “Stupid wealth tax proposals like this make it irresponsible for me not to plan leaving the state,” he said.

    DoorDash didn’t respond to a request for comment.

    What would it still take to become law?

    To qualify for the ballot, proponents of the proposal, led by the healthcare union, must gather nearly 875,000 registered voter signatures and submit them to county elections officials by June 24.

    If it makes it on the November ballot, the proposal would be the focus of intense scrutiny and debate as both sides have already lined up big war chests to bombard voters with their positions. A majority of voters would need to approve the ballot measure.

    Lawyers for billionaires have also signaled the battle won’t be over even if the ballot measure passes.

    “Our clients are prepared to mount a vigorous constitutional challenge if this measure advances,” wrote Alex Spiro, an attorney who has represented billionaires such as Elon Musk in a December letter to California Gov. Gavin Newsom.

    What are the initiative’s chances?

    It’s unclear if the ballot measure has a good chance of passing in November. Newsom opposes the tax, and his support has proved important for ballot measures.

    In 2022, he opposed a ballot measure that would have subsidized the electric vehicle market by raising taxes on Californians who earn more than $2 million annually. The measure failed. The following year, he opposed legislation to tax assets exceeding $50 million. The bill was shelved before the Legislature could vote on it. A bill that would impose an annual tax on California residents whose net worth surpassed $30 million also failed in 2020.

    However, Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Fremont) have backed the wealth tax proposal, and Californians have passed temporary tax measures before. In 2012, they approved Proposition 30 to increase sales tax and personal income tax for residents with an annual income of more than $250,000.

    Could it solve California’s problems?

    The Legislative Analyst’s Office said in a December letter that the state would probably collect tens of billions of dollars from the wealth tax, but it could also lose other tax revenue.

    “The exact amount the state would collect is very hard to predict for many reasons. For example, it is hard to know what actions billionaires would take to reduce the amount of tax they pay. Also, much of the wealth is based on stock prices, which are always changing,” the letter said.

    California economist Kevin Klowden said the tax could create future budget problems for the state. “The catch is that this is a one-off fix for what is a systemic problem,” he said.

    Supporters of the proposal said the measure would raise about $100 billion and pushed back against the idea that billionaires would flee.

    “We see a lot of cheap talk from billionaires,” said UC Berkeley law professor Brian Galle, who helped write the proposal. “Some people do actually leave and change their behavior, but the vast bulk of wealthy people don’t, because it doesn’t make sense.”

    Still, the pushback has been escalating.

    Palo Alto-based venture capitalist Chamath Palihapitiya estimates that the lost revenues from the billionaires who have already left the state would lead to more losses in tax revenues than gained by the new tax.

    “By starting this ill-conceived attempt at an asset tax, the California budget deficit will explode,” he posted on X. “And we still don’t know if the tax will even make the ballot.”

    The union backing the initiative says “the billionaire exodus narrative” is “wildly overstated.”

    “Right now, it appears the overwhelming majority of billionaires have chosen to stay in California past the Jan. 1 deadline,” said Suzanne Jimenez, chief of staff at SEIU-United Healthcare Workers West. “Only a very small percentage left before the deadline, despite weeks of Chicken Little talking points claiming a modest tax would trigger a mass departure.”

    Times staff writer Seema Mehta contributed to this report.

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    Queenie Wong

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  • Judge overturning jury guilty verdict sparks backlash: ‘Stunned’ 

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    A Minnesota judge acquitted a man on multiple charges after a jury found him guilty of aiding and abetting theft, sparking backlash from conservatives on social media.  

    Minnesota Fourth Judicial District Judge Sarah West on Thursday granted a motion for acquittal filed by Abdifatah Abdulkadir Yusuf on charges related to fraud at a company he owned, Promise Health Services LLC. West ruled that the state’s case “relied heavily on circumstantial evidence.” 

    “While the Court is troubled by the manner in which fraud was able to be perpetuated at Promise, the State’s evidence did not exclude other reasonable, rational inferences that are inconsistent with Mr. Yusuf’s guilt,” West wrote. 

    Why It Matters 

    Earlier this year, a national association of federal judges said there has been a “rise in criticism, threats and violence aimed at members of the judiciary.”

    “Specific decisions issued by judges are not formed from individual opinions, but rather are prepared against evaluation of what the ‘laws on the books’ require,” the Federal Judges Association said in a statement in March.

    What To Know 

    The judge’s ruling has been criticized by conservatives. Republican Minnesota State Representative and gubernatorial candidate Kristin Robbins told KARE that she was “stunned” by the decision. 

    “I was surprised to see the judge overturned a jury’s guilty verdict & acquit a defendant in a $7.2 million fraud case involving Medicaid,” she wrote on X. “I will be looking at ways to strengthen state law so fraud cases can be successfully prosecuted in state court.” 

    Conservative social media activist Robby Starbuck wrote on X: “Judge Sarah West didn’t just overturn a jury who convicted Abdifatah Yusuf of stealing millions from taxpayers, she didn’t even really explain why except that he could’ve not been guilty. Judges like this are destroying trust in our system. We need MAJOR change to restore trust.” 

    A representative for the Minnesota Attorney General’s Office told Newsweek: “The Minnesota Attorney General’s Office is appealing.” 

    “Judge West’s 55-page order meticulously considered the facts and faithfully applied the law. It affirms what we have maintained from the very beginning: that Abdifatah Yusuf did not commit fraud or racketeering,” Yusuf’s attorney, Ian Birrell, told Newsweek. “The Court’s Order affirms the fundamental principle that justice requires both fairness and proof. We appreciate the Court’s thorough consideration of all the proceedings and we are confident Mr. Yusuf’s innocence will be affirmed through the appeal process.” 

    Yusuf was charged with one count of racketeering and six counts of aiding and abetting theft by swindle in June 2024 in connection with fraudulent claims submitted by Promise Health Services to Medicaid for reimbursement. Prosecutors alleged that Yusuf’s fraud cost the Medicaid program more than $7.2 million. 

    The court acquitted Yusuf of racketeering on August 12 of this year. Later that day, the jury returned guilty verdicts on each remaining count. 

    West ruled that there is a “reasonable, rational inference” that Yusuf owned Promise Health Services and was involved on paper, but his brother was the one “committing the fraud and operating the business in a reckless manner without Mr. Yusuf’s knowledge or involvement.” 

    “The State simply wants to show that there is fraud at Promise, therefore Mr. Yusuf knew and intentionally aided in the same,” West wrote. “However, the State overinflates the actual fraud in their investigation and presentation, failed to provide actual circumstantial evidence tying Mr. Yusuf to his brother’s activities, and the evidence is insufficient to sustain a conviction for the six counts of Aiding and Abetting Theft By Swindle.” 

    What People Are Saying 

    Minnesota Fourth Judicial District Judge Sarah West, in an order: “The Court is concerned about the fraud that occurred at Promise. The way this case was presented and the failure by the State to actually connect the dots, even through clear inference from circumstantial evidence, that Mr. Yusuf knowingly assisted in the fraud is more than concerning. The trier of fact, and this Court upon review, should not be in a place of having to dig through and work to interpret the volumes of evidence to establish the State’s case.” 

    Republican Minnesota State Representative and gubernatorial candidate Kristin Robbins told KARE: “I was stunned. We want to strengthen state law so that we can get prosecutions out of these cases. Because clearly a jury thought he was guilty.” 

    What Happens Next 

    The Minnesota Attorney General’s Office said it is appealing the decision. 

    Do you have a story that Newsweek should be covering? Do you have any questions about this story? Contact LiveNews@newsweek.com.

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  • Cracker Barrel responds to logo backlash — but customers aren’t buying it

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    After days of outrage and backlash over its new minimalist logo, branding, and design,ecor Cracker Barrel has issued a public statement attempting to reassure its base: Uncle Herschel is still part of the family. The company maintains that the bearded figure once seen beside the barrel was never intended to represent a specific person.

    Still, many fans had come to associate him with the real Herschel McCartney, a longtime Martha White salesman, family member of founder Dan Evins, and early brand ambassador. That personal connection made the design shift feel more than cosmetic to some loyalists.

    The August 25 post titled “A Promise to Our Guests” aimed to address concerns by confirming that Uncle Herschel’s Favorite Breakfast is returning to the menu and that he will remain featured on signage and in-store materials. This came days after Cracker Barrel told Yahoo it was “keeping its charm” despite ongoing changes to branding and decor. Still, the logo change was just the beginning of a broader redesign effort that’s left longtime customers uneasy.

    If the last few days have shown us anything, it’s how deeply people care about Cracker Barrel. We’re truly grateful for your heartfelt voices.

    You’ve also shown us that we could’ve done a better job sharing who we are and who we’ll always be.

    What has not changed, and what will never change, are the values this company was built on when Cracker Barrel first opened in 1969: hard work, family, and scratch-cooked food made with care. A place where everyone feels at home, no matter where you’re from or where you’re headed.

    That’s the Cracker Barrel you’ll always find.

    The things people love most about our stores aren’t going anywhere: rocking chairs on the porch, a warm fire in the hearth, peg games on the table, unique treasures in our gift shop, and vintage Americana with antiques pulled straight from our warehouse in Lebanon, Tennessee.

    We love seeing how much you care about our “old timer.” We love him too.

    Uncle Herschel will still be on our menu (welcome back Uncle Herschel’s Favorite Breakfast Platter), on our road signs, and featured in our country store.

    He’s not going anywhere — he’s family.

    In a follow-up explainer on Uncle Herschel’s backstory, we broke down the roots of the confusion, clarifying who fans thought they saw in the logo—and why his removal has stirred so much emotion. That reaction has since moved beyond mere sentiment, even getting into meme territory. Cracker Barrel’s rebrand has sparked a wave of criticism, with many accusing the company of abandoning the very identity it once celebrated.

    Public Reaction to Cracker Barrel’s Statement

    The company’s post on Instagram received thousands of likes and a flood of pointed comments. While the tone was intended to be reassuring, many interpreted it as tone-deaf. The most-liked replies didn’t hold back.

    One commenter wrote, “We don’t want remodeled stores. We want the old rustic floors that creak as you step on them.” Another said, “You’ve shown us you could’ve done a better job… and then chose not to.”

    The response was not taken lightly, signaling that the backlash has taken on a life of its own. On social media, fans are circulating satirical interpretations of the brand’s choices, often referencing the removal of beloved vintage decor.

    Several comments called the post “PR word salad” and compared the redesigned interiors to a “sterile, institutionalized retirement home.” Some called out the contradiction in tone, questioning how the company could celebrate Uncle Herschel in one breath while stripping his likeness from the brand’s most iconic visual.

    What Customers Say They Actually Want

    Throughout the backlash, many have been consistent in their demands. The company is facing calls to cancel its remodels, restore its antique signage and furnishings, and return to a less curated, more lived-in version of its stores. These requests stem from something bigger than brand. The decor and layout were seen as a core part of the brand’s original appeal.

    Some customers acknowledged that changes are inevitable, yet still voiced disappointment that the brand’s attempt to modernize feels like a rejection of the past rather than an evolution.

    Cracker Barrel’s statement insists, “He’s not going anywhere — he’s family.” Yet for many customers, removing the bearded figure from the sign is exactly what made it feel like he already had

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  • Drake Bell Speaks Out After Josh Peck Received Backlash For Publicly Remaining Silent After His Sexual Assault Revelation (WATCH)

    Drake Bell Speaks Out After Josh Peck Received Backlash For Publicly Remaining Silent After His Sexual Assault Revelation (WATCH)

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    Drake Bell is speaking out after social media users flooded the comments of Josh Peck‘s social media accounts. This came after he remained silent after Bell’s recent sexual assault revelation.

    RELATED: Drake Bell Reveals He Was Repeatedly Sexually Assaulted During His Time On Nickelodeon (Video)

    Here’s What’s Going Down With Drake Bell & Josh Peck

    According to TMZ, social media users spent the week running Peck’s comments up after ‘Quiet On Set: The Dark Side of Kids TV’ aired earlier this week. As The Shade Room previously reported, the four-part docuseries explored the “toxic” culture of popular children’s shows between the 1990s and early 2000s.

    Additionally, the docuseries shined a spotlight on the previous work culture at Nickelodeon. Furthermore, it was alleged the channel’s producer, Dan Schneider, “sexualized” the child actors. In addition, he was accused of incorporating “racist” jokes into skits and promoting an “uncomfortable work environment.

    Furthermore, some actors reportedly felt like they experienced an “abusive” relationship while working with Schneider, per The Shade Room.

    Drake Bell even revealed that he was sexually assaulted by Brian Peck, a Nickelodeon dialogue coach, at the age of 15, per The Shade Room.

    “I was sleeping on the couch where I usually sleep and… I woke up to him… I opened my eyes, and I woke up, and he was… he was sexually assaulting me,” Bell explained during the docuseries. “….Anytime I had an audition, or anytime I needed to work on dialogue or anything, I somehow ended up back at Brian’s house. And it just got worse, and worse, and worse, and worse, and I was just trapped. I had no way out. The abuse was extensive, and it got pretty brutal.”

    Here’s What Prompted Social Media Users To Enter Josh Peck’s Comments

    On March 17 — the day the first portion of the documentary aired — Bell’s former ‘Drake & Josh’ co-star took to TikTok to share a video. According to IMDb, the pair starred together on the show between 2004-2007. This followed them also working side by side on ‘The Amanda Show’ between 1999-2002, per IMDb.

    TikTok users appeared to believe that Peck’s clip would address the allegations shared in the docuseries. Or the former child actor would speak on Bell’s sexual assault revelation.

    However, Peck stayed clear of the series and Bell’s revelation completely. Instead, the TikTok video showed him doing a voiceover.

    “If I haven’t talked to you since 2023, take that as a f*****g sign that you don’t exist to me anymore. D**n, you f*****g bug. You got sprayed with the Raid. Bye! See you never,” Peck lipsynchs in the video.

    Here’s What Social Media Users Said

    Peck’s TikTok immediately prompted comments as it garnered over 7 million views.

    TikTok user @Mother Bucker wrote, “It’s giving ✨Dan Schneider Core✨”

    While TikTok user @thebluemermaidmama 🍉 added, “Your silence speaks volumes bro. It’s really sad. 😢”

    TikTok user @Kinsey hibler wrote, “The timing with this is .. odd”

    While TikTok user @Monique🧸, added, “*sigh* Josh you disappointed us..”

    TikTok user @MissJoebob wrote, “In the end we will not remember the words of our enemies but the silence of our friends.”

    While TikTok user the Junque Love added, “WE ALL WATCHED IT JOSH.”

    Over on Peck’s latest post on Instagram, the comments continued. However, many accused the actor of deleting their thoughts.

    Instagram user @samialexis._ wrote, “You could delete the comment all you want doesn’t matter. Gonna have to block me or turn off them comments bookie”

    While Instagram user @lamarie002 added, “You taking the time to delete comment instead of taking the time to actually reflect is mind baffling”

    Drake Bell Defends Josh Peck

    Amid the backlash toward Peck, Bell took to TikTok to share his own video. The actor explained that he noticed the comments toward Peck and wanted to let fans know that right now is a “really emotional time.”

    Bell explained that “not everything is put out to the public.” However, he wants fans to know that Peck reached out to him.

    “He has reached out to me and it’s been very sensitive but he has reached out to talk with me and help me work through this and has been really great,” Bell said. “And I just wanted to let you guys know that and take it a little easy on him.”

    @drakebell

    ♬ I kind of relate – Drake Bell

    RELATED: ‘Zoey 101’ Star Alexa Nikolas Reacts After Dan Schneider Issues Apology In Response To ‘Quiet On Set’ (Video)

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    Jadriena Solomon

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  • Whew! Sally Beauty Catches Backlash Due To Now-Deleted TikTok (Video)

    Whew! Sally Beauty Catches Backlash Due To Now-Deleted TikTok (Video)

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    Sally Beauty is currently catching heat due to a now-deleted TikTok shared by the brand.

    RELATED: Kim Kardashian Defends Having A Tanning Bed In Her Office Following Backlash From Viral TikTok

    More Details Regarding The Now-Deleted TikTok From Sally Beauty

    Sally Beauty reportedly took to TikTok recently to share a video which has now been deleted. In footage chronicled by The Shade Room, a young African American woman is seen promoting a product from the brand.

    The product is called a Cold Vapor Styler flat-iron and seems to use vapor rather than heat to straighten hair.

    “It transforms water into cold vapor for you to use to straighten or curl your hair, which equals less passes, which equals less damage,” she explains.

    The woman then tells viewers that her hair is “really coarse,” explaining that she has textured, 4C hair. From there, she demonstrates using the product on her own strands.

    By the end of the clip, the woman ends up praising Sally Beauty for getting it right with their innovation.

    Social Media Reacts

    However, social media users did not agree and shared their criticism of the brand.

    Instagram user @lisaleslie wrote, “Bye Sally’s!”

    While Instagram user @ruthie_daughter added, “Can’t stand @sallybeauty they don’t have s**t in their stores for us 🙄”

    Instagram user @indeskribeabull added, “They need to face more than backlash. I’m about to call Maxine Shaw, attorney-at-law.”

    While Instagram user @ovotrina wrote, “y’all second time playing with us in black history month.”

    Instagram user @ravenchantal remarked, “Sally beauty gives me like radio shack vibes. I just feel like it should be extinct by now.”

    Some users even shared criticism of the woman.

    Instagram user @miikpeel wrote, “Why would she try to straighten undetangled, unstretched hair?? 😭”

    While Instagram user @t.tesfaye added, “Y’all mad at them but not mad at her for getting up there performing like a damn clown . Girl that hair is fried , dried and laid to the mf side bye .”

    Instagram user @parchpouch added, “🤣🤣🤣🤣🤣 sizzling like a fajita took me out. I’m sorry I’m not even mad at Sally’s I’m mad at her cuz why sis why!”

    While Instagram user @lansa.jpg wrote, “Yeah mad at sally but y’all should be mad at the influencer. Sally prolly really think that’s how black people do hair, but as a black women, the influencer, should’ve did a better job. 2024 hold the right people accountable”

    The Brand Has Yet To Respond To The Backlash

    Sally Beauty has yet to issue a public statement responding to the recent backlash. However, that isn’t stopping the brand from receiving continued backlash under their most recent post on Instagram.  Ironically, the post highlights multiple Black beauty founders.

    Instagram user @inimitablevibe wrote.

    “Nah. We need a STATEMENT. AN OFFICIAL STATEMENT AS WELL AS A workshop training for all employees because clearly you all don’t have a DEI dept.”

    While Instagram user @laurenashley__________ added.

    “Never supporting Sally beauty another day, very disappointed”



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    Jadriena Solomon

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  • Mike Flynn’s Hall of Fame induction halted after board resignations

    Mike Flynn’s Hall of Fame induction halted after board resignations

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    Following a flurry of resignations and public outcry, the Rhode Island Heritage Hall of Fame announced it will defer its 2024 induction of Michael Flynn.

    In a guest column to the Providence Journal, Patrick Conley, the Hall of Fame’s past president, stated Flynn’s induction would be deferred “to a more peaceful and rational time and a more secure place.”

    “Discretion is the better part of valor,” said Conley, who currently serves as the board’s volunteer general counsel.

    In the guest column, Conley defended the board’s December 14 vote to induct Flynn, former President Donald Trump’s National Security Adviser. However, he said “the Hall of Fame exhibited ‘poor timing’ by choosing to honor General Flynn in this turbulent and politically charged environment.”

    According to The Journal, at least eight board members have resigned as a result of the vote to induct Flynn. Conley’s column said the Hall of Fame received 100 letters in protest of Flynn’s pending induction.

    Newsweek reached out to Conley via email for additional comments.

    Gen. Michael Flynn, former national security adviser to US President Donald Trump, is shown leaving Federal Court on December 1, 2017 in Washington, DC.
    AFP/Getty Images

    Flynn, a retired three-star general who grew up in Rhode Island, was let go as Trump’s national security advisor after three weeks in office when it was revealed that he was not truthful about a conversation he had with then Russian ambassador Sergey Kislyak while speaking with former Vice President Mike Pence.

    In 2017, Flynn pleaded guilty for lying to the Federal Bureau of Investigation about the conversation with Kislyak. Trump pardoned him in November 2020.

    Since then, Flynn has been associated with members of the QAnon conspiracy movement who have made baseless claims that a globalist cabal, made up of Democrats and wealthy businessmen, is involved in a worldwide child sex-trafficking ring.

    He also falsely claimed COVID was invented in order to steal the 2020 election from Trump. Last year, Flynn suggested a Myanmar-like military coup “should happen” in the U.S.

    “A majority of the board that voted to induct Flynn relied upon his 30-year record of public service and high attainments,” Conley wrote in his guest column. “It accepted as true the grant of clemency from the president of the United States asserting that no crime was actually committed and the fact that charges against Flynn were dropped by a weaponized Department of Justice.”

    John Parrillo, a history professor, was among the recent board resignations.

    In a resignation letter obtained by the Journal, Parrillo said he was “saddened to the core” by the vote to induct a man with Flynn’s “politics and far-right militaristic vision for America” and by the board’s unwillingness to reconsider his Hall of Fame merits.

    “For the last seven years, it has been my [privilege] to nominate at least seven Rhode Islanders into our RI Hall of Fame. A fresco painter. A Naval historian. A Hollywood filmmaker. Two creators of a music festival. An early father of the American Industrial Revolution and the creator of at least 14 Black colleges,” Parrillo wrote in his letter.

    “With a most heavy heart,” he said he must resign.

    In another letter obtained by the Journal, former Rhode Island state Senator Bea Lanzi and lawyer John Tarantino wrote: “There is an overall right and wrong in the universe, and what has happened here, in our view, and according to our moral compasses, and consciences, compels us to resign.”