He is drinking from the INQwell when he should be drinking beer - Anonymiser
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Former Microsoft manager engineers tax break
IT SEEMS THAT old loyalties carry a lot of weight for a former Microsoft manager who entered politics.
Facing a $2.8 billion deficit and pending insolvency, Washington State's House of Representatives has pending Bill 3176, which mysteriously proposes changes to the state 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 alleged past tax evasion.
Under current state law the Vole has to declare all of its worldwide licensing revenues of approximately $20.7 billion annually, which are taxable at 0.484 per cent and that amounts to $100.1 million. Under the proposed new law, only the portion of software licenses actually sold to punters in Washington state would be taxable, perhaps resulting in less than a million dollars annually in royalty tax due from the company.
So why is the State of Washington suddenly being so generous to Microsoft? Well, a blog has pointed out that the Bill 3176 sponsor is State Representative Ross Hunter, who represents Medina, home to Bill Gates and a number of other current and former Microsoft billionaires and multi-millionaires, and other areas around Microsoft's corporate campus. However the relationship goes a bit deeper than that. Hunter was also a general manager at Microsoft, so it would appear that he is doing his old mates a big favour.
The software giant has not paid the state much in the royalty taxes for quite a while. Since 1997, Microsoft has avoided an estimated $1.27 billion in royalty taxes, interest and penalties by operating a small office in Nevada to account for royalty revenue from software licensing.
While the shy and retiring Microsoft CEO Steve Ballmer claims that the Vole honours its local communities by providing transparency in its business practices he doesn't say much about the company's Nevada tax dodge.
Although Bill Gates is launching a sterling effort to educate Africa's poor, Washington state's own education system is fast running out of cash and that royalty tax money from Microsoft would help it swimmingly. But it doesn't look like the state is going to get it, thanks to Ross Hunter. µ
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Well ain't this just lovely during these times...
Thank you for the post Nick and spreading the word.
-Matt
(Age 34, Vancouver, Washington, U.S.A.)
Here in Yankville (aka, the U.S.) - virtually every corporation is registered in the tiny state of Delaware. Why? Because Delaware has the most generous schemea for corporations - they pay no corporate income tax, the startup cost is trivial, there is no jury court for corporate law, and ... best of all... NOBODY from the corporation has to even live in the state!
Talk about the scam of the century - this has been going on for decades. It's really interesting to see how little the rest of the world knows about the shills and scams going on within our own borders, but it really just goes to show that the idea of the U.S. as a sovereign nation is really just a fantasy - it is really a bunch of fiefdoms (aka corporations) and nation-states (aka, the "several states") all colluding together to make the rich richer, and the peasants toil ever longer hours for less and less pay (aka, inflation).
Who knew you could get a McQuickie divorce like this in Reno?
Get a broom and a mop, skim the bottom and top. There is nothing so mean as my DRM machine.
Who knew the Underwood devilment came in so many spread'em varieties?
Who knew they had a McDon McITtaly burger? A devilish concoction of artichoke tapenade, Asiago cheese and Romaine lettuce, on focaccia and all grown in Italy on the corner of Vine and Bovine. We can't there from here.
Who knew there is a McTurk sort of thing on sale in Turkey that contains no turkey.
Perhaps there's a Scotty McMac, of neeps and tatties escorting a 1/2lb patty of battered haggis.
And maybe too soon the Vatican will be sporting a McBig Peter bianca with Nutella on the corner of Divine, Vine and Bovine.
But will they be bringing McRib back?
That's what I want to know. To be sure, it's no small miracle to licence Whimpy's inside every Airbus Mcbus, but to get takeaways from McBoeing, how's that going?
I heard that in San Antonio, they have a salsa that's made in New York City.
I palin at the thoughts of even greater Offshore drillings.
Woa! these are made with 100% certified globaloney!
This Happy Deal comes with a shy and retiring, soft-spoken clown, who may be available for mitzvahs and birthdays. Who knows? Is there more than one Samoan in the Sammamish?
Bon appertif la buon vita, buena Vista!
Ma va' in mona!
I keep all me bobs-N-nickers-N-bits down the Tesco.
This isn't the first time Ross Hunter deliberately ignores WA State residents in need to ignite Microsoft corporate greed.
Corrupt Olympia lawmakers led by Ross Hunter, secretly approved the "Microsoft Subsidy Bill", HB1487 effective July 1, 2009. The bill passed as an emergency measure to avoid a public referendum.
In lawmakers' haste to approve the bill, they failed to check facts, math, or hear opposing testimony.
The bill was literally written by Microsoft and passed almost verbatim (see www.tinyurl/microsoftsubsidy) for details.
The bill contains material errors and omissions. For example, Ross Hunter failed to disclose that the bill's beneficiaries, Microsoft foreign visa workers, ALREADY receive generous Microsoft tuition reimbursement benefits.
Thanks to Hunter, Washington taxpayers are now forced to fund college tuition subsidies (approx. $10,000 per student per year) for Microsoft's high income, temporary foreign visa workers and their families.
These high income workers earn on average $92,000/ year, more than double the WA state per capita income. Source: USDOL ETA 2008), more than double the state per capita income.
Washington State taxpayers (including the laid off Microsoft workers replaced by the bill’s foreign visa worker beneficiaries) are forced to fund generous financial subsidies for beneficiaries that did not ask, organize or lobby for the benefit. Their high incomes disqualify them for financial aid, and they already receive Microsoft tuition reimbursement benefits.
During the same legislative session the same lawmakers chose to fund Microsoft private interests with public taxpayer dollars, the state eliminated basic healthcare benefits for 110,000 Washington residents in need and cut 2,500 teacher jobs.
In less than 6 months of operation, costs for this bill exceed 200% of the entire annual plan.
Washington State. For Corporate Greed. Buy Microsoft Win. Washington voters loose.
HB1487 was a warm up for Ross Hunter's latest Microsoft fraud. I am only grateful that the media captured this story instead of letting Hunter get away with passing clandestine laws that only serve Microsoft corporate greed and turn a blind eye to Washington voters in need.
Certainly there is no kick-back to the good state rep Hunter, for he is an HONORABLE man. Obviously there is nothing in this for HIM, he is doing it for the benefit of the PEOPLE he represents.
And there is NO similarity to the way California businesses (e.g. Hollywood) and so-called part-time residents (e.g. Opra) dodge business or income taxes, respectively. None what so ever. Not at all.
And there is absolutely no irony in the fact that these businesses and induhviduals demand EVERYONE else pay their FAIR SHARE in taxes.
Smells like a load of Pelosi to me.
One
Big
A$$
Mistake
America
This sort of tax dodging could very easily be stopped. That it is not speaks to the revolving door corruption between companies, their lobbyists, and legislatures.
The solution is simply to deny all government contracts to companies who deliberately organize or restructure (e.g. maintain a headquarters in the Bahamas or this Microsoft license office nonsense) in order to avoid paying taxes.
Ah, but that would be biting the hand that feeds them.
You took the words right out of my mouth.
If something is not done soon,this country will never recover. Where there's money to be made nothings safe.
Amazing that you can do Tax Evasion in your own country .. wicked system . .Yanks!
us poor Blighties have to use the off-shore banks and tiny islands around the UK to stash our dosh .. and all a yank's gotta do is open a bank account in neighbouring state. Brilliant!
"worldwide licensing revenues of approximately $20.7 billion annually, which are taxable at 0.484 per cent" -- EXACTLY WHY does defining revenue as from a particular source make for a lower tax rate? Particularly a means that doesn't require producing any goods.
Why isn't this benefit equally available to "natural persons", instead of the 30% or so rates on EARNED income from labor? Just say you "license" your time, get the low rate.
This is simply another example of the regressionist policies now ruling the U.S.
From the signing of the constitution in 1787 to the end of the 1940's the U.S. was ruled by a small elite and the common citizen was crushed should he try to have his rights respected. The great advances made in the past 60 years are now falling under the totalitarian hand once again. Before they were called Robber barons. Now they are simply called Corporations.