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Microsoft Still Flushing $2 Billion A Year Down The Online Drain
http://www.businessinsider.com/henry-blodget-microsoft-still-shoveling-2-billion-a-year-into-the-online-money-pit-2010-1
Tax break court case ups Wash. deficit to $2.8B
,----[ Quote ]
| A court case that extended a tax break to
| out-of-state companies has nudged
| Washington's budget deficit to about $2.8
| billion, but early signs of an economic
| recovery are making the state's financial
| future a bit brighter.
`----
http://seattletimes.nwsource.com/html/localnews/2011056184_apwaxgrrevenueforecast2ndldwritethru.html
The Debate Is Back - Should Tax Returns Be Public? - NYTimes.com
,----[ Quote ]
| What's maddening is that the Department of
| Revenue won't provide a complete
| explanation for why it won't challenge this
| abusive tax transaction's accounting.
| That's what we're hoping to learn more
| about with our records requests.
`----
http://microsofttaxdodge.com/2010/02/the-debate-is-back-should-tax-returns-be-public-nytimescom.html
Broke-ass Washington state set to give MSFT $100M annual tax cut and amnesty for $1B in evasion
,----[ Quote ]
| Facing a $2.8 billion deficit and pending
| insolvency, Washington State's House Bill
| 3176 proposes changes to its B&O Royalty
| tax that would give Microsoft an estimated
| $100 million tax cut annually and possible
| amnesty for more than a billion dollars in
| past tax evasion.
|
| Under current law, all of Microsoft's
| worldwide licensing revenues of
| approximately $20.7 billion annually are
| taxable at .484 percent or ~$100.1 million.
| Under the new law, only the portion of
| software licenses sold to Washington state
| customers would be taxable - perhaps
| resulting in less than a million annually
| in royalty tax from the company.
`----
http://www.boingboing.net/2010/02/14/broke-ass-washington.html
Washington to Give Microsoft a $100 Million Annual Tax Cut...and Possible Amnesty on Past Tax Evasion
,----[ Quote ]
| I'd like to encourage any Microsoft
| employees with knowledge of any
| manipulation around the company's Nevada
| tax practices to report what they know to
| the Department of Revenue. Your efforts
| could benefit Washington citizens as our
| state teeters on the edge of bankruptcy.
|
| [...]
|
| It's not like Microsoft has ever paid the
| royalty tax in full either. Since 1997,
| Microsoft has evaded an estimated $1.27
| billion in royalty taxes, interest and
| penalties by operating a small office in
| Reno, Nevada to account for royalty revenue
| from software licensing.
|
| [...]
|
| We just want to know why the Department of
| Revenue hasn't enforced the law as it's
| written today. We just want Microsoft to
| pay its due under the existing Royalty tax
| rather than having their illegal practice
| blessed with amnesty at a critical juncture
| for our state's finances.
`----
http://microsofttaxdodge.com/2010/02/washington-state-about-to-give-microsoft-a-100-million-tax-cut-annually.html
Kyle Welsh said...
"Bill's sponsor, Rep. Hunter retired from Microsoft in 2000."
Related:
Cover Story: Washingtonâs Candy Land of Tax Breaks
,----[ Quote ]
| As our cash-strapped state prepares to cut
| services for the poor and mentally ill,
| billions of dollars in tax breaks and
| exemptions are still being doled out.
|
| [...]
|
| Deferral of state and local retail sales and
| use taxes are also allowed for the
| construction of buildings for high-tech
| projects involving research and development.
| That has Microsoft and its ever-expanding
| campus written all over it, allowing MS to
| avoid sales tax on construction costs,
| materials, and new equipment, for example.
| Another 500 small and large companies also
| benefit, says the state. The exemption was
| created in 1994 and extended in 2004 for
| another 10 years. Over a decade, that's $650
| million the state is not raking in.
|
| Almost 1,700 high-tech firms also share
| another $50 million in B&O tax credits for
| research and development under an exemption
| that was also renewed in 2004 for another
| decade. And a $12 million property-tax break
| goes to companies that use custom computer
| software.
|
| Microsoft, incidentally, has also avoided
| paying a ton of state taxes by moving
| offshore, so to speak. According to writer
| and ex-Microsoftie Jeff Reifman, Microsoft
| opened a small Nevada office in 1997 to
| record software-licensing revenue and skirt
| Washington's half-percent wholesale tax on
| software-licensing royalties. Reifman
| estimates that has helped the company of
| billionaires Bill Gates and Paul Allen avoid
| more than $700 million in Washington taxes.
| With interest and penalties, the total
| exceeds $1 billion.
`----
http://www.seattleweekly.com/2010-02-03/news/cover-story-washington-s-untouchable-tax-breaks
An Open Letter to Microsoft CEO Steve Ballmer: Quit Dodging Washington Taxes
http://blogs.seattleweekly.com/dailyweekly/2009/11/an_open_letter_to_microsoft_ce.php
Gregoire Proposes to Redefine Economic Nexus
,----[ Quote ]
| The post seems to focus on companies out of
| state doing business in Washington. It does
| not clearly address Microsoft which both has
| an extensive physical footprint in Washington
| and uses Nevada to record revenue in an
| attempt to evade Washington's B&O Royalty
| Tax.
|
| While we are in favor of clearer definition
| of Nexus in relationship to these taxes, it's
| important to focus on the potential
| illegality of Microsoft's existing accounting
| methods to dodge the royalty tax. We continue
| to believe Microsoft's historical behavior
| and current actions represent tax evasion and
| can and should be cracked down upon by the
| Department of Revenue.
`----
http://microsofttaxdodge.com/2010/01/gregoire-proposes-to-redefine-economic-nexus.html
Washington State Revisits Data Center Tax Break
http://www.datacenterknowledge.com/archives/2010/02/01/group-pushes-for-change-in-washington-state/
State Legislature considers tax break for new data centers
http://seattletimes.nwsource.com/html/microsoftpri0/2010946791_statelegislatureconsiderstaxbreakondatacenters.html
Microsoft Dodging Taxes on Sales to Local Cities and State Agencies
,----[ Quote ]
| In other words, while Washington cities and
| state agencies think they are buying local,
| they're actually purchasing software through a
| scheme designed to provide cover for Microsoft
| to evade the state's B & O Royalty Tax.
|
| Over the past twelve years, Microsoft has
| avoided paying an estimated $1.24 billion in
| taxes, interest and penalties on its software
| licensing revenue. Washington State's current
| projected budget deficit is $2.6 billion.
`----
http://microsofttaxdodge.com/2010/01/microsoft-dodging-state-taxes-on-sales-to-local-government.html
Quincyâs Gain: Huge Growth in Tax Revenue
,----[ Quote ]
| That spigot of revenue may be short-lived due
| to the stateâs stance on data center tax
| incentives. Microsoft announced in August
| that it was migrating its Windows Azure cloud
| computing infrastructure from its data center
| in Quincy to another Microsoft facility in
| San Antonio. The reason: Microsoftâs
| unhappiness with tax policies in Washington
| state.
`----
http://www.datacenterknowledge.com/archives/2009/12/15/quincys-gain-huge-growth-in-tax-revenue/
More companies are disclosing their political activity
,----[ Quote ]
| Monday, the Center for Political
| Accountability will announce that software
| giant Microsoft, Time Warner, Campbell Soup
| and Wisconsin Energy have agreed to detail
| their trade-association donations, along with
| other political spending.
|
| Dan Bross, Microsoft's senior director of
| corporate citizenship, said the company
| wanted "to lead by example." Microsoft has
| posted its political-related dues online for
| the first time. The largest payment: $2.1
| million in fiscal year 2009 to the Computing
| Technology Industry Association, a high-tech
| trade group.
`----
http://www.usatoday.com/news/washington/2009-12-13-lobbying-disclosures-companies_N.htm
White House Forecasts Job Growth Next Year
,----[ Quote ]
| How can the US Create jobs? Here's a simple
| way that won't cost taxpayers a dime.
|
| How? Eliminate H-1B and L-1 Visa Fraud and
| abuse.
|
| What can I do right now to change this?
| Boycott Microsoft. Microsoft is the largest
| and most abusive foreign visa worker
| employer.
|
| * Foreign H-1B workers "displace qualified
| American workers"
| * H-1B workers "substantially deprived U.S.
| citizens of employment."
| * 20% + USCIS audited guest worker visa
| applications are fraudulent
| * Foreign H-1B workers âsubstantially exceedâ
| 241,000 unemployed American tech workers in
| the same field
|
| How did this happen?
| Corporate Greed and bottomless lobbyist
| funding from corporations including
| Microsoft. Convicted felon and H-1B program
| mastermind, Microsoft lobbyist, Jack Abramoff
| convinced Congress (without opposing
| testimony) to pass laws that make it legal
| for employers to lay off American citizens,
| and recruit their foreign visa worker
| replacements exclusively offshore.
|
| The good news
|
| S887 - This bipartisan Durbin/Grassley bill
| reform will crack down on corporate visa
| fraud and abuse and outlaw the corporate
| bypass of US talent and exclusive recruiting
| offshore for US jobs in the USA.
|
| Employ Americans Act â The Sanders/Grassley
| bill will outlaw US employers from firing US
| citizens and exclusively hire their
| replacements from other countries.
|
| Simple things YOU can do TODAY to change the
| US jobs crisis
| 1. BOYCOTT Microsoft.
| 2. Insist your elected officials support
| Employ America Act and S887.
|
| If they donât support these bipartisan bills,
| ask why and CHASE THE MONEY. Who are their
| corporate funding contributors?
|
| Actions and Deeds NOT Lip service.
| What are YOUR politicians doing about the
| jobs crisis?
| Are they co-sponsoring/sponsoring these
| bipartisan bills?
| Whatâs their voting record?
| Are they fighting for unemployment and COBRA
| benefits?
|
| Dead giveaways your politician will do ZERO
| to create US jobs for US citizens
| Political funding from Microsoft, Compete
| America, and Indian companies
|
| B.S. Detector Corporate Greed funded lies â
| keywords âInnovationâ, âBest, and Brightestâ,
| globalization, xenophobia.
|
| This issue is the bulls eye of corporate
| greed and political corruption. Hence, a
| consumer boycott of Microsoft has more impact
| than expecting a broken, corrupt system to
| change.
|
| Remind your elected officials they were
| elected FOR the people, BY the PEOPLE, not
| BUY Corporate GREED.
|
| Tell them to end corporate visa fraud and
| abuse. American citizens, people who have
| paid their dues and taxes must have a fair
| chance to compete for jobs in our own
| country.
`----
http://blogs.abcnews.com/politicalpunch/2009/12/white-house-forecasts-job-growth-next-year/comments/page/2/#comments
Video: Exploring Microsoft's licensing taxes
http://blog.seattlepi.com/microsoft/archives/187700.asp
Staff growth at Microsoft may ramp up
,----[ Quote ]
| The 11 new jobs that Microsoft announced at
| its Reno operation last week might be the
| harbinger of something bigger.
|
| After all, the company launched its
| licensing operation in Reno with only 40
| employees in 1997. Today, the Microsoft
| Licensing GP office employs 250 fulltime
| Microsoft staff and nearly 400 additional
| contract workers.
|
| [...]
|
| Microsoft Licensing GP in Reno handles
| support of licensing agreements with
| business customers and other organizations
| in North and South America.
`----
http://www.nnbw.com/ArticleRead.aspx?storyID=14322
3,088 Taxpayers Paid the B&O Royalty Tax in 2009
,----[ Quote ]
| According to the Department of Revenue,
| 3,088 taxpayers (or SUCKERS! as
| Microsoft's CEO Steve Ballmer might call
| them) paid B&O Royalty Tax in 2009.
|
| Below is the history of B&O Royalty taxes
| paid in Washington since 1999 (source: Wa.
| Dept. of Revenue via e-mail). Note: I
| calculated the taxes paid column at .00484
| of taxable revenue.
|
| While $6.3 million in royalty taxes were
| paid in '09, if Microsoft had been paying
| the tax on its $18.7 billion in licensing
| revenue - the state should have recorded
| more than $87.6 million in tax receipts.
|
| This may explain why Ballmer has so far
| refused to respond to our call to open up
| Microsoft's Washington and Nevada tax
| records.
`----
http://microsofttaxdodge.com/2009/12/3088-taxpayers-paid-the-bo-royalty-tax-in-2009.html
Microsoft and licensing taxes, on KUOW
,----[ Quote ]
| Appearing on KUOW's "The Conversation" on
| Monday was Jeff Reifman, a former Microsoft
| employee who has been writing about
| Microsoft's software-licensing practices and
| whether they are illegal.
|
| He asserts that Microsoft sidesteps Washington
| tax law by licensing its software out of an
| office in Reno, Nev. Nevada has no software-
| licensing tax; Washington does.
`----
http://blog.seattlepi.com/microsoft/archives/186105.asp
Reno's Microsoft outpost has grown from 40 to 250 employees
,----[ Quote ]
| âThis is an attempt for people to know
| more about us,â said Mary Ellen Smith,
| general manager of the Reno operation
| which employs 250 people.
`----
http://www.rgj.com/article/20091204/BIZ/91204039/1003/CARSON/Reno-s-Microsoft-outpost-has-grown-from-40-to-250-employees
Now Obama is driving Microsoft overseas
,----[ Quote ]
| It takes an incredibly powerful company to threaten the U.S. government in
| hopes of impacting a significant decision, but thatâs precisely what
| Microsoft is doing. Microsoft CEO Steve Ballmer made headlines when he
| publicly attacked President Barack Obamaâs plan to cut tax breaks on U.S.
| companiesâ foreign profits, a plan which is currently awaiting Congressional
| approval. Mr. Ballmer suggests that if the tax succeeds, Microsoft may begin
| a significant move out of the U.S., taking with it tax revenue and jobs. He
| states, âIt makes U.S. jobs more expensive. Weâre better off taking lots of
| people and moving them out of the U.S. as opposed to keeping them inside the
| U.S.â
|
| [...]
|
| Mr. Ballmer, perhaps the most outspoken critic, did acknowledge that the
| Obama proposal preserved research and experimentation cost tax breaks. He
| warned, though, that the cuts to foreign exemptions would raise the cost of
| Microsoftâs 56,552 U.S. employees. He says this could necessitate moving them
| overseas. Microsoft was previously embroiled in a controversy over whether it
| should lay off foreign workers before U.S. ones.
`----
http://www.stoptheaclu.com/2009/06/07/now-obama-is-driving-microsoft-overseas/
Ballmer Says Tax Would Move Microsoft Jobs Offshore
,----[ Quote ]
| Microsoft Corp. Chief Executive Officer Steven Ballmer said the worldâs
| largest software company would move some employees offshore if Congress
| enacts President Barack Obamaâs plans to impose higher taxes on U.S.
| companiesâ foreign profits.
`----
http://www.bloomberg.com/apps/news?pid=20601087&sid=amBiYGyHOkZ8
Ballmer Says Tax Would Move Microsoft Jobs Offshore
http://americandaily.com/index.php/article/1488
Tax plan would send jobs offshore, Ballmer says
http://seattletimes.nwsource.com/html/microsoft/2009298130_ballmertaxes04.html
Microsoft speaks against foreign profit tax proposal
http://www.thenewstribune.com/business/story/766636.html
Microsoft debt offering raises questions about plans for funds
,----[ Quote ]
| Microsoft, which has historically avoided borrowing money, this morning took
| the next step in its previously announced plan to raise funds through a
| public debt offering. The company made the move in a preliminary prospectus
| filed with the Securities and Exchange Commission.
`----
http://www.techflash.com/microsoft/Microsoft_debt_offering_raises_questions_about_plans_for_funds_44725857.html
How Obama's tax reforms could impact Microsoft's bottom line
,----[ Quote ]
| The debate hinges on policies that let companies with international
| operations avoid higher U.S. tax rates by reinvesting their foreign earnings
| overseas. The Obama administration last Monday detailed its plan to put a
| damper on that practice.
|
| "Currently, businesses that invest overseas can take immediate deductions on
| their U.S. tax returns for expenses supporting their overseas investments but
| nevertheless 'defer' paying U.S. taxes on the profits they make from those
| investments," the White House said in a May 4 briefing document. "As a
| result, U.S. taxpayer dollars are used to provide a significant tax advantage
| to companies who invest overseas relative to those who invest and create jobs
| at home."
`----
http://www.techflash.com/microsoft/How_Obamas_tax_plan_could_impact_Microsofts_bottom_line_44679452.html
Microsoft subsidiary has â477m pretax profit
,----[ Quote ]
| Microsoft Ireland Operations Ltd (MIOL) had turnover of â11.3 billion and
| paid corporation tax of â63.5 million according to accounts just lodged with
| the Companies Office and seen by The Irish Times.
`----
http://www.irishtimes.com/newspaper/finance/2009/0429/1224245596231.html
Microsoft Ireland slashes US dividend as profits rise
,----[ Quote ]
| The dividend payment is roughly half the almost â3bn the Irish subsidiary
| remitted to the US headquarters in the financial year ended June 2006.
`----
http://www.independent.ie/business/irish/microsoft-ireland-slashes-us-dividend-as-profits-rise-1364208.html
Microsoft in tax evasion soup
,----[ Quote ]
| Software major Microsoft Corpâs Indian subsidiary has been issued a
| show-cause notice for non-payment of service tax worth Rs 127 crore. The tax
| has been claimed on services offered to Microsoft Singapore by way of
| marketing support.
`----
http://infotech.indiatimes.com/Microsoft_in_tax_evasion_soup/rssarticleshow/2977840.cms
Tax benefit helped Microsoft's 3Q earnings
,----[ Quote ]
| Turns out Microsoft and Uncle Sam have been going back through the company's
| books from 2000 to 2003. Not knowing how that would end up, Microsoft
| had "over accrued" its tax provision in past quarters, said Colleen Healy,
| general manager of investor relations. With the review settled, the company
| was able to reduce that provision.
`----
http://seattletimes.nwsource.com/html/businesstechnology/2004377713_btdownload28.html
Microsoft Leads in Lobbying Largesse
,----[ Quote ]
| Microsoft is leading the tech industryâs charge up Capitol Hill, according to
| statistics released Monday.
|
| The world's largest software company spent $9 million on lobbyists to make
| its case in issues including taxes and trade, according to statistics
| ^^^^^^^^^^^^^^^^^^^^^^^^^
| compiled by the Center for Responsive Politics.
`----
http://www.redherring.com/Home/24187
Bill Gates: Rich Individuals Should Pay More Tax, Wealthy Corporations Less?
,----[ Quote ]
| As Taxing Tennessee points out, Bill Gates opposes eliminating the death tax
| but is quite happy to have local and state taxes eliminated for his
| company...
`----
http://seekingalpha.com/article/65465-bill-gates-rich-individuals-should-pay-more-tax-wealthy-corporations-less?source=yahoo
Microsoft EULA lands it with $175m Indian tax headache
,----[ Quote ]
| Basing its ruling on the terms of Microsoft's own EULA (end-user license
| agreement), an Indian court has ordered the company to pay tax on royalty
| income generated in the country, Tax India Online (TIOL) reports.
|
| [...]
|
| âUnacceptable tax avoidance typically involved the creation of complex
| artificial structures by which, as though by the wave of a magic wand, the
| tax payer conjures out of the air a loss, or a gain, or expenditure, or
| whatever it may be, which otherwise would never have existed. These
| structures are designed to achieve an adventitious tax benefit for the
| taxpayer, and in truth are no more than raids on the public funds at the
| expense of the general body of taxpayers, and as such are unacceptable.
`----
http://www.channelregister.co.uk/2008/03/31/microsoft_india_tax_ruling/
Cheers not jeers to Speaker Chopp on the Microsoft tax concession
,----[ Quote ]
| The Columbia Basin Herald this past week characterized House Speaker Frank
| Chopp as being a Forrest Gump, "stupid is as stupid does" villain for
| opposing big proposed tax breaks for Microsoft and Yahoo. The tax concession,
| those companies said, were necessary to keep them from fleeing Grant County,
| where they have huge server farms. The requests were similar to the $3.2
| billion in breaks Boeing Co. got from Governor Gary Locke and the Legislature
| when it threatened to take some of its assembly operations elsewhere.
`----
http://www.crosscut.com/business-technology/12933/Cheers+not+jeers+to+Speaker+Chopp+on+the+Microsoft+tax+concession/
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