The Intersection of Tax Law and Social Media Governance: Lessons from History

The Intersection of Tax Law and Social Media Governance: Lessons from History

Introduction:

In today's interconnected world, the realms of tax law and social media governance may seem unrelated. However, upon closer examination, we can find common points that highlight the need for effective regulation in both domains. This article explores the principles behind Section 83(b) election in tax law and the challenges of fixing social media platforms. By drawing parallels and incorporating unique insights, we can gain a deeper understanding of the issues at hand and propose actionable advice for moving forward.

Section 83(b) Election and Tax Law:

Section 83(a) of the tax code establishes the general principle for recognizing income based on when stock options are granted. However, Section 83(b) election provides an opportunity to deviate from this principle. By filing an application under Section 83(b), individuals can recognize income at the time of stock grant, regardless of the conditions attached to it. While this election carries the risk of losing tax refunds if one leaves before the rights are vested, it also offers the benefit of starting the holding period from the time of stock receipt. This means that once the vesting period is over, individuals can sell the stocks and enjoy the benefits of capital gains tax rates.

Fixing Social Media:

The issues surrounding social media governance go beyond mere concerns about inappropriate content. They touch upon the core democratic ideals of free speech, privacy, and the dissemination of information. To effectively address these challenges, we must distinguish between personal speech and public speech, just as early Americans recognized the importance of privacy in their correspondence. The distinction between personal and public communication has historical roots, with legal precedents set in the 19th century to protect telegrams' privacy. This distinction is crucial in navigating the complexities of social media platforms.

Lessons from History: The Role of Broadcasting Regulation:

The rise of radio and its subsequent commercialization in the early 20th century parallel the current state of social media platforms. The unregulated nature of radio broadcasting led to confusion and hindered the public interest. To counter this, the concept of the public interest standard emerged, emphasizing the ethical responsibility of broadcasters to serve the common good. Applying this standard to online broadcasting can help address the issues of polarization, extremism, and misinformation prevalent on social media.

Actionable Advice for Social Media Governance:

• 1. Extend the Secrecy-of-Correspondence Doctrine: Personal communications online should be protected under the same principles that safeguarded traditional mail. Internet companies must act as common carriers, ensuring the privacy and confidentiality of personal speech exchanged on their platforms.

• 2. Apply the Public Interest Standard: Online broadcasting, which includes content dissemination on social media, should be subject to the public interest standard. This approach would revive the oversight role of regulatory bodies like the Federal Communications Commission (FCC) and hold social media companies accountable for the content they broadcast.

• 3. Reevaluate Section 230: Section 230 of the Communications Decency Act, which currently shields web companies from liability for user-posted content, needs to be reexamined. Instead of isolating these companies from the public interest, a new framework should be established to make them responsive and accountable to society's needs.

Conclusion:

The intersection of tax law and social media governance may seem unconventional, but it reveals important parallels. By applying the principles of Section 83(b) election to social media regulation, we can find inspiration for effective governance. Incorporating the lessons from history, such as the importance of the public interest standard in broadcasting, we can shape the future of social media platforms for the common good. By extending the secrecy-of-correspondence doctrine and reevaluating Section 230, we can ensure privacy, accountability, and responsible content dissemination in the digital age. It is time to harness the will of the people and create a democratic framework that aligns with our values and traditions.