Posts from Politics

Break The Internet Tomorrow

Tomorrow, I am going to take AVC offline to show the FCC what the Internet will look like if they repeal the Net Neutrality rules.

It is part of a collective action called Break The Internet.

If you want to join me in this protest, you can get what you need here.

Hopefully, the Verizon shill who runs the FCC will get the message.

The End Of Net Neutrality As We Know It

I have written about net neutrality frequently here at AVC. I believe that for as long as we have local monopolies and duopolies for last mile broadband internet in most parts of the US, we need our federal government to actively reign in the broadband providers from doing things that are anti-innovation, anti-consumer, and pro-big business. For much of the last decade, the internet crowd has been a force to be reckoned with on this issue and we fought for and won good net neutrality rules that were put in place and defended in court. If you are a long time reader of AVC, you heard me advocating for and celebrating these wins.

The times have changed. We have a pro-big business team in the White House and at the FCC who are hell-bent to overturn those hard fought for net neutrality rules. We should fight them in these efforts, just like we have fought for these rules at every turn. Here are some things you can do:

But even as we fight for net neutrality, we also should be investing heavily in efforts to reduce our society’s reliance on the big cable and telcos for our broadband internet. That’s the core problem here.

So, in addition to fighting for net neutrality, here is what you should be doing:

  1. Don’t use an ISP who won’t commit to following basic net neutrality rules if you have a choice. Our portfolio company Tucows has a subsidiary called Ting that provides fiber broadband in some parts of the country and they are committed to following basic net neutrality rules no matter what the law says. Use an ISP like that if you can.
  2. Report abusive behavior and business practices by your ISP to the FCC. This will become even more important if the FCC overturns net neutrality.
  3. Join a mesh network or multiple mesh networks. Peer to peer wireless is our best long-term solution to the monopoly/duopoly issue.
  4. Look for blockchain projects that are seeking to solve the mesh networking issue and support them. The token-based incentive business model is a powerful way to bootstrap p2p mesh networks. This piece from 2015 explains that well.

I believe that technology is ultimately a better solution than regulation to market failures like the monopoly/duopoly issue in last mile broadband and I am confident that we will get the technology to solve it soon enough (certainly in my expected lifetime). But until that happens, regulation is a good tool to keep things moving in the right direction. That’s why I have supported net neutrality and will continue to support it until the technology arrives in the mass market to address the underlying problem.

Update On Stock Options/RSUs Issue

I just saw this on my twitter:

This means that the Senate has now made the tax reform bill a win for those who work in startups instead of a loss.

I’m thrilled and I want to thank all of you who called your elected officials and those in the Senate Finance Committee who clearly understand the importance of equity compensation to the startup model.

Don’t Tax Options And RSUs Upon Vesting!

The current draft of the Senate Tax Reform Bill would tax stock options and RSUs upon vesting.

Currently, stock options are taxed upon exercise and RSUs are taxed upon release of the underlying shares.

This is a HUGE deal to everyone who works in companies that partially compensate their employees with these two equity instruments.

What this would mean is every month, when your equity compensation vests a little bit, you will owe taxes on it even though you can’t do anything with that equity compensation.

You can’t spend it, you can’t save it, you can’t invest it. Because you don’t have it yet.

Taxing equity compensation upon vesting makes no sense.

I have seen many employees leave companies and not exercise their vested stock options. It happens all of the time.

That should be a clear enough example to the lawmakers that vesting should not be a taxable event.

But, sadly, I don’t think this is really about what makes sense. It is about politics.

The US Senate, particularly the Republican leadership, needs to hear from you, the employees who will feel the pain of this change, that it is wrong.

Otherwise, I think this provision could become law.

And that would be the end of equity compensation in startups as we know it.

If this provision becomes law, startup and growth tech companies will not be able to offer equity compensation to their employees. We will see equity compensation replaced with cash compensation and the ability to share in the wealth creation at your employer will be taken away. This has profound implications for those who work in tech companies and equally profound implications for the competitiveness of the US tech sector.

So, what can we do about this?

First, we have to move fast. The tax reform bill is moving quickly with a goal of getting it done before year end.

This particular provision, which was in the House bill and was taken out last week, will be considered by the Senate as soon as TODAY.

So, please reach out to your Senators and let them know that they “must remove Section III(H)(1) from the Senate Tax Cuts And Jobs Act”.

The best way to do that is to call their office and speak to the staffer who handles tax reform for them.

Here’s a short explanation of how to do that.

Please do it today. This is really very important to everyone who works in tech.

Election Day

It’s election day and I’m going to stop by the polls this morning and vote.

It would be easy for me to skip the polls as there is not much at stake in NYC this year.

Mayor de Blasio is going to get re-elected fairly easily as he has no strong challengers.

The same is true of the other citywide officials and most city council members, including mine.

But I am going to vote in spite of all of that.

I think one of our biggest problems in our country is voter apathy.

So I am going to demonstrate against that by showing up and voting in an election with little to nothing at stake.

Guns And Mental Health

Another mass shooting and the outcries that we must do something return.

I do think we need to do something and I am a fan of more gun safety regulation.

But we also need to enforce the laws that are on the books already.

I would imagine that the Las Vegas shooter used an illegal weapon last night.

Why can’t we enforce the laws that are already on the books?

And the people who commit these horrible crimes are mentally ill.

Anyone who could turn a gun on innocent people is clearly not right in their head.

So while we fight for more gun safety laws, a fight that is hard and where little ground has been gained in recent years, we should also fight for better healthcare for mental illness.

A Nightmare

I don’t know why we call them Dreamers. Because they get to pursue the American Dream? Don’t we all?

These kids, or adults as many are now, were brought to America by their parents and have lived here for most of it.

That we would even think that they should not be here is abhorrent to me.

We can talk about their parents, who came to the US illegally, but we should not be talking about their kids.

These people did nothing wrong, broke no laws.

As my partner Albert, an immigrant, wrote on his blog yesterday:

The blame for this situation though rests with Congress and past Presidents who have failed to make any meaningful progress on immigration reform. Right now, it is worth remembering now that the DREAM act has been around for 16 years. There have been multiple attempts to pass it with at varying times support in the House and Senate, but never the two at the same time, including a bipartisan filibuster that included 8 Democrats. The opposition by Democrats often arose because they wanted comprehensive immigration reform or nothing.

We have our elected officials to blame for not addressing this issue and fixing it a long time ago.

I for one expect them to fix it, to put the other immigration issues aside, which they never seem to be able to do, and address this one.

This is about our morality, our decency, our humanity.

Fix it.