System Crash The Ban on State AI Laws is Dead, Canada Bows to Trump and Big Tech, and the AI Backlash Grows
Jul 4, 2025
Canada ditches its digital services tax under U.S. pressure, highlighting the clash between tech interests and public good. The ban on state-level AI regulations has unexpectedly collapsed, sparking a bipartisan uproar. Meanwhile, the AI backlash is intensifying as jobs get replaced, leading to growing fears about emotional dependency on AI for communication. In a lighter twist, tech leaders launch a bank named after a Middle Earth location while layoffs loom in the industry, bringing a mix of humor and serious discussions about the future of tech.
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Trump Pressures Canada on AI Tax
- Canada dropped its digital services tax after a Trump tweet pressured them to rescind it at the last minute.
- This shows Trump's ability to leverage trade negotiations to favor American tech giants.
Canada's Tech-Friendly Shift
- The Trudeau government aims to attract tech and AI investment by rolling back taxes and easing regulations.
- This reflects a pattern where governments prioritize corporate interests over democratic processes and social protections.
Tech Tried to Ban AI Laws
- Silicon Valley nearly passed a 5-10 year ban on state-level AI laws by lobbying Trump and GOP allies.
- This revealed the tech industry's willingness to shut down democratic regulation to protect its interests.
