EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

05.12.09

Microsoft Debt and Tax Evasion

Posted in Finance, Microsoft at 8:06 am by Dr. Roy Schestowitz

“There is such an overvaluation of technology stocks that it is absurd. I would include our stock in that category. It is bad for the long-term worth of the economy.”

Steve Ballmer

Summary: Microsoft reenters “Reality Mode” as financial issues inevitably surface

IT WOULD only be reasonable to say that following Microsoft's abysmal results (earnings are down 32%) and additional layoffs, Microsoft struggles to hide its problems. We’ve already remarked on Microsoft’s massive tax evasion [1, 2] (billions of dollars per year) and even the Seattle press cannot turn a blind eye to it, despite the harm this may cause to their beloved Microsoft. That’s billions of dollars that Microsoft virtually took from taxpayers’ pockets (the hidden “Microsoft tax”).

How Obama’s tax reforms could impact Microsoft’s bottom line

[...]

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.”

From the same publication comes this report about Microsoft debt.

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.

It underplays the severity of the matter. This Microsoft-sympathetic reporter cites a Bloomberg article from another reporter who is close to Microsoft (Dina Bass). This leads to the funny feeling and suspicion that Microsoft is spinning this discomforting (probably obligatory) disclosure using all of its friends in the press. It’s a familiar strategy when attacking competition (seed, the reference and repeat). Microsoft debt would not surprise us though. See for example what we wrote in:

A Microsoft shareholder already likens Steve Ballmer and Bill Gates to Bernard Madoff and other shareholders are equally resentful and want Steve Ballmer out.

When it comes to Microsoft’s news about debt, we have already alluded to it yesterday. Also yesterday in the very same post we showed that Microsoft is attacking Google using regulators. It’s worth keeping an eye on Christine Varney because TechCrunch suggests she may try to deflect antitrust pressure from Microsoft onto Google.

Watch Out Google, Obama’s Antitrust Chief Is Looking To Make An Example Out Of You

The Obama Administration’s new chief antitrust enforcer at the Department of Justice, Christine Varney, is making it very clear that she is going to be much more aggressive in bringing antitrust actions against large, American corporations.

Microsoft has its share of government insiders [1, 2, 3, 4, 5, 6, 7, 8] with whom it can attack Google via the authorities. There is precedence here, so it’s just not a theory; it’s predicated upon Microsoft’s consistent behaviour and Microsoft is at great risk right now, so it’s merciless.

Debt and demand

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. No, GNU/Linux Isn't at 3% and Windows Isn't at Over 90%, Either

    This ludicrous idea that "Linux" (however one defines it) enjoys just 3% of the "market" is false and it should be treated as laughable spin (it is being widely promoted this week, often by Microsoft boosters looking to make charts where Windows stays at above 90% and Vista 10 is 'gaining'... at the expense of Windows)



  2. Links 3/6/2020: Devuan Beowulf 3.0.0 and Tails 4.7 Released

    Links for the day



  3. Links 2/6/2020: New Firefox Release (77), Debian-based MX Linux 19.2, KDevelop 5.5.2, GNU/Linux Growth on Desktops/Laptops

    Links for the day



  4. Techrights Can Figure Out Source Protection/Anonymisation Whilst Operating Very Transparently

    We're still quite radically transparent whilst at the same time enjoying 100% source protection record; we're also improving the software we use to publish more quickly and efficiently



  5. IRC Proceedings: Monday, June 01, 2020

    IRC logs for Monday, June 01, 2020



  6. This is How GNU Finally Dies

    "Brace for when GNU falls the way that OSI, FSF, FSFE, Mozilla, and the Linux Foundation did."



  7. Latest Microsoft Layoffs Spun as 'Innovation' (There's Always a Positive PR Angle)

    The public is expected to simply ignore the fact that Microsoft is laying off employees (again); instead we're expected to think it's all about Microsoft being very brilliant and innovative



  8. Microsoft Playing the Victim, Irrationally 'Hated' by Victims of Its Abuse

    We're meant to believe that those whom Microsoft bribes against are the opinionated 'haters' and Microsoft is a victim of 'hate'



  9. Links 1/6/2020: Linux 5.7, FOSSlife Born, LibreOffice 7.0 Beta1, Linux Mint 20 Making Early Promises

    Links for the day



  10. Linux Without Linus

    The Linux Foundation seems to be acting like Linus (Linux founder) is somewhat of a liability (forcing him to take a ‘break’ from his own project) while taking even the most notorious proposals from corporations, including those that called Linux a “cancer”



  11. What It Would Take for Linus Torvalds to Leave Linux Foundation Without the Linux Trademark and Without Linux

    It's nice to think that the founder of Linux can just take his project and walk away, moving elsewhere, i.e. away from the Microsoft-employed executives who now "boss" him; but it's not that simple anymore



  12. The Past Does Not Go Away, Except From Short-Term Memories

    People who are drunk on power and money (sometimes not even their own money) like to portray themselves as the very opposite of what they are; but in the age of the Internet it's difficult to make the general public simply forget the past and "move on..."



  13. IRC Proceedings: Sunday, May 31, 2020

    IRC logs for Sunday, May 31, 2020



  14. Links 1/6/2020: OpenMandriva Lx 4.1 2020.05, Linux Lite 5.0 Release, FreeBSD 11.4 RC2

    Links for the day



  15. It's a Common Mistake and Common Misconception/Error to Treat Microsoft as Just Another 'Large Company' (or 'Big Tech')

    What's wrong about Microsoft isn't its size; what's wrong with Microsoft is its behaviour, which isn't just illegal (crimes are the norm) but also hugely unethical



  16. Lessons of Michael Arrington (About Microsoft)

    Microsoft and Bill Gates have a long history bullying their critics; the quote above (or below) shows how even people who advertise with Microsoft are becoming the target of abuse



  17. 'Best' of Both Worlds: GNU/Linux Freedom + Malware With Keyloggers and DRM

    Running a Microsoft-controlled GNU/Linux instance under Vista 10 ("Windows Subsystem for Linux") in the age of virtual machines, dual boot and containers makes as much sense as chopping some carrots to go with the veal meal to appease vegetarian diners



  18. First They Bribe the Employer, Media Lynch Mobs May Follow

    The 'cancel culture' lynch mobs, which leverage social causes (or marginalised groups), remain a convenient means by which to oust one's political/business opposition; but money too is a massive contributing factor and the more one has of it, the easier it is to control media narrative and subversive focus



  19. Upcoming Series Teaser: The Bribery Operation of William Henry Gates III

    Bribery goes a very long way when it comes to the megalomaniac who pays the media to portray him as the world's most generous person



  20. Windows Ransomware Must Not be Unspeakable When People Die in Large Numbers Due to That (and Windows Has Intentional Back Doors)

    Loss of electronic patient records, ransom and downtime among the severe consequences of deploying Microsoft inside hospitals; yet the media rarely names the real culprit (manslaughter charges theoretically possible) and nobody gets punished except those who offer real solutions



  21. IRC Proceedings: Saturday, May 30, 2020

    IRC logs for Saturday, May 30, 2020



  22. Burning the House That Richard Stallman (RMS) Built: An Open Letter to GNU Maintainers Who Opposed RMS

    An open letter to people who petitioned RMS to step down and who outsource GNU projects to Microsoft (GitHub)



  23. Links 30/5/2020: Godot Editor Under Web Browsers, Alpine Linux 3.12.0 and EasyOS 2.3

    Links for the day



  24. EPO's Illegal Patents and Massive Corruption Go Unnoticed by Corporate Media and Sites That Cover Patent News

    Very major corruption scandals still emerge in Europe's second-largest institution and illegal patents get granted as well as promoted; somehow, perhaps miraculously, this no longer seems to bother anybody in the media (corruption and radical policies have been gradually 'normalised')



  25. Never Mind If GNU/Linux Works Better Inside Hospitals and Free Software Not Only Safer But Vastly More Efficient...

    With lives on the line one might expect hospitals to choose what's most secure and generally works best; but in practice there seems to be a leaning towards what bribes best



  26. Sick Alexander Ramsey is Using a Public Health Crisis to Lie About the Unitary Patent, Whose Fall Made Him Redundant and/or Obsolete

    Weaponised media continues to manufacture utterly ridiculous puff pieces for Team UPC, containing intentional lies from beginning to end



  27. IRC Proceedings: Friday, May 29, 2020

    IRC logs for Friday, May 29, 2020



  28. They Came, They Saw, He Died

    Microsoft is an inherently sociopathic company; today's story of AppGet is an important reminder that Microsoft has not changed and isn't changing (Maui is another week-old example of trademark-hijacking tactics by Microsoft)



  29. Microsoft-Connected CloudGuru Doesn't Care About GNU/Linux and Now It's Gradually Killing the BSD/Linux-Centric Jupiter Broadcasting (Bought by Linux Academy)

    Assuming Docker is being 'killed' by Microsoft (or at least hijacked to push Windows, Azure and so on) while the GitHub-hosted (Microsoft) CloudGuru, whose co-founder comes from Microsoft, ‘finishes the job’ with Linux Academy and its assets, it’s time to take stock of a pattern/trend that ruins the media too



  30. What Happened to Docker is a Cautionary Tale About the Not-So-New Microsoft

    It’s hardly shocking that Docker collapsed (mass-scale layoffs) after the company had gotten close to Microsoft and got rid of its very own founder (a Red Hat veteran) while the software is being killed off/co-opted by Microsoft (all over the news this week; we’ve omitted links by intention as it’s only puff pieces, no investigative journalism anywhere); we only ask one thing: is anyone paying attention and, if so, what are the lessons learned?


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts