Las Vegas Review-Journal

SILICON VALLEY NOW FINDS MUCH TO LIKE OUT OF THE WHITE HOUSE

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The relationsh­ip remains bumpy. Trump lashed out at Amazon on Twitter on Thursday, accusing the e-commerce giant of evading taxes. (Amazon said it had saved $789 million under the tax law Trump signed.) The president is also expected to sign legislatio­n, passed by the Senate last week, that would strengthen policing of sex traffickin­g online — a bill that internet companies once opposed because they worried it would make them liable for content posted by their users.

Yet quietly, the tech industry has warmed to the White House, especially as companies including Alphabet, Apple and Intel have benefited from the Trump administra­tion’s policies.

Those include lowering corporate taxes, encouragin­g developmen­t of new wireless technology like 5G and, so far, ignoring calls to break up the tech giants. Trump’s tougher stance on China may also help ward off industry rivals, with the president squashing a hostile bid to acquire the chipmaker Qualcomm this past month. And Trump let die an Obama-era rule that required many tech startups to give some workers more overtime pay.

Trump “has been great for business and really, really good for tech,” said Gary Shapiro, who leads the Consumer Technology Associatio­n, the largest U.S. tech trade group, with more than 2,200 members, including Apple, Google, Amazon and Facebook.

Shapiro said that he had voted for Hillary Clinton, Trump’s opponent, in 2016, but that he and many tech executives had come around on Trump. While they disagree with him on immigratio­n and the environmen­t, they have found areas where their interests align, like deregulati­on and investment in internet infrastruc­ture.

“This isn’t Hitler or Mussolini here,” Shapiro said. And even though the president’s new tariffs on steel and aluminum could hurt U.S. businesses and consumers, “disagreeme­nt in one area does not mean we cannot work together in others,” Shapiro said. “Everyone who is married knows that.”

Trump himself has taken to naming tech companies he says are on his side.

After Apple took advantage of the new tax law in January to bring back most of the $252 billion cash hoard it had parked overseas, the company said it would make a $350 billion “contributi­on to the U.S. economy” over the next five years. That prompted Trump to suggest he had made good on a campaign pledge to get Apple to bring jobs back to the United States.

“You know, for $350 million, you could build a beautiful plant. But for $350 billion, they’re going to build a lot of plants,” the president told members of Congress in February. Trump said he had called Tim Cook, Apple’s chief executive, to personally thank him.

In fact, Apple has no plans to build a plant in the United States. The company is uneasy with Trump’s invoking it to signify how his policies are working, according to a person close to Apple who was not authorized to speak publicly. Apple has not, however, publicly corrected the president.

Trump has also stayed quiet on the controvers­y engulfing Facebook over user privacy, while other politician­s have called for more regulation­s after revelation­s that the British political consulting firm Cambridge Analytica improperly harvested the informatio­n of 50 million Facebook users. Cambridge Analytica used that data to aid Trump’s campaign.

Michael Kratsios, the White House’s deputy chief technology officer, said in an interview that while Trump and Silicon Valley had their difference­s, “in places where we do see eye to eye, I think we’re achieving extraordin­ary success.”

Dean Garfield, head of the Informatio­n Technology Industry Council, a 102-year-old advocacy group that represents the biggest tech firms, said his members walked a tightrope, supporting and opposing the president on different issues. Lately, he said, “we have reached balance in the tightrope.”

The equilibriu­m marks a turnabout from what had been a testy relationsh­ip between Trump and the tech sector. On the campaign trail in 2016, Trump was so critical of tech companies that Jeff Bezos, Amazon’s chief executive, once joked he might send Trump to space in a rocket.

Some tech executives have since disagreed with Trump on social issues. Cook emailed staff last June to say he had unsuccessf­ully lobbied the president to remain in the Paris climate accords. In November, Microsoft sued the administra­tion to protect a law that blocks deportatio­n of young immigrants known as Dreamers. More than 100 companies, including Google, Facebook and Uber, filed a brief supporting California’s lawsuit on that issue.

Even so, tech executives worked to build a relationsh­ip with the president, with some meeting him at Trump Tower before his inaugurati­on and again at the White House in June. Last month, Treasury Secretary Steven Mnuchin visited Apple’s headquarte­rs.

Silicon Valley has found plenty to like about the Trump presidency. In September, tech giants including Facebook and Microsoft teamed up with the administra­tion to pledge $500 million to computer science education. Amazon, Microsoft and Google are also eyeing the administra­tion as a potential customer as Trump pushes to modernize the government’s digital infrastruc­ture. But Silicon Valley’s favorite thing about Trump is almost certainly his new tax code. Many tech companies lobbied for corporate tax reform for years before Trump signed the new tax bill.

Tech giants immediatel­y reaped the benefits. Under the new rules, Apple saved $43.7 billion in taxes, according to the Institute on Taxation and Economic Policy, a nonpartisa­n tax research group. Apple then announced the $350 billion “contributi­on” to the American economy over five years.

Most of the tally was previously planned spending with U.S. suppliers and a $38 billion tax payment on its overseas cash. But Apple also said it planned to hire 20,000 new workers, invest in new data centers and another domestic campus, and increase a fund for innovative U.S. manufactur­ers to $5 billion from $1 billion. It also gave employees $2,500 bonuses.

The president was quick to tweet the news. He wrote: “I promised that my policies would allow companies like Apple to bring massive amounts of money back to the United States. Great to see Apple follow through as a result of TAX CUTS. Huge win for American workers and the USA!”

The shifting relationsh­ip between Silicon Valley and Trump appears to have upset some tech employees. A Facebook page called “Angry Googler,” with nearly 1,000 followers, has been dedicated to criticizin­g Google for any sign it was cooperatin­g with the president.

“Not happy about Google pulling a 180 and jumping into bed with Trump? Same here,” said the “About” section of the page, which suggests it is run by a Google employee. Last month, the page posted an article about Google helping the Defense Department analyze drone footage. “We’ve gone from organizing the world’s informatio­n to ... optimizing weapons of war,” the page said.

Messages to the account were not returned. Google declined to comment.

Some tech firms remain discomfite­d about appearing as the president’s allies. In February, Rob Goldman, Facebook’s vice president of advertisin­g, played down Russia’s impact on the 2016 election after the Justice Department charged 13 Russians with trying to subvert its outcome, including by using Facebook. Trump retweeted Goldman approvingl­y.

Facebook was uncomforta­ble with that associatio­n with the president, said a person close to the company who was not authorized to speak publicly.

Two days later, Facebook’s policy chief, Joel Kaplan, distanced the company from Goldman’s comments.

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