Bonum Certa Men Certa

Microsoft Tax Avoidance, by the Numbers

Guess who is left to pay Microsoft's and BIll's bills

Debt and demand



Summary: Another up-to-date look at how Microsoft loots the American public

SEVERAL readers have independently brought to our attention this post from Slashdot, which reiterates old facts about Microsoft's tax avoidance.

"With Washington State facing a billion-dollar biennial budget deficit, the spotlight again shifts to Microsoft's software licensing office in Reno, Nevada. 'Although the majority of its software development is performed in Washington State, Microsoft records its estimated $18 billion in licensing revenue per year through a corporate office in Reno, Nevada where there is no licensing tax. Just by enforcing the state's existing tax law from 2008 onwards, we could reduce Washington's revenue shortfall by more than 70 percent. Alternately, we could pursue the entire $707 million from Microsoft's thirteen years of tax dodging and cover most of the expected deficit going forward.' We have discussed Microsoft's creative capitalism in the past."


Here is the main source referenced by Slashdot. It states its case by citing some older reports and connecting them to contemporary trends and figures.

Last week, the Seattle Times reported that Washington State's tax revenue is expected to decline by $238 million creating a $430 million shortfall in the biennial budget. The deficit is expected to grow further as a result of "rising demand for state services and other factors". Luckily, there is an easy way to shore up our finances - ask Attorney General Rob McKenna to begin enforcing the state's existing tax law on software licensing.

Over the past thirteen years, I estimate that Microsoft has avoided paying more than $707 million in B & O taxes on sales of its corporate software licenses (see Citizen Microsoft and Microsoft's $528 million Washington tax break ). Although the majority of its software development is performed in Washington State, Microsoft records its estimated $18 billion in licensing revenue per year through a corporate office in Reno, Nevada where there is no licensing tax.


For more information about Microsoft's practices, see previous posts on the subject, including:



More recently we showed that Steve Ballmer is blackmailing Obama to protect this status quo. Until people stand up and demand change, nothing is likely to magically correct itself. This whole taxation game characterises not just Microsoft's finances in the United States but also elsewhere (accounting in Ireland, as outlined in prior posts) and the personal finances of Bill Gates. Microsoft and Gates rely heavily on people's ignorance not only when it comes to technical computing matters.

"My background is finance and accounting. As a socially conscious venture capitalist and philanthropist, I have a very good understanding of wealth management and philanthropy. I started my career in 1967 with the IRS as a specialist in taxation covering many areas of the tax law including the so-called legal loopholes to charitable giving. […] However, the Gates Buffet foundation grant is nothing more than a shell game in which control of assets for both Gates and Buffet remain the same. […] The only difference is that the accumulation of wealth by these two will be much more massive because they will no longer have to pay any taxes."

The Gates and Buffet Foundation Shell Game

Recent Techrights' Posts

Bailing Out GAFAM, Giving Taxpayers' Money to Failing Companies, and Trying to Outlaw Lawsuits Against Them
What would the late Lincoln have said?
 
After at Least Two Rounds of Mass Layoffs in August Microsoft Said to Have "September Layoff Confirmed - Performance Based"
Those "M5 level meetings" sound plausible
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 25, 2025
IRC logs for Monday, August 25, 2025
Slopwatch: Slopfarms All Over Google News and Real News Sites Pushed Out of Visibility
Google News is dying (as a tool of value)
Gemini Links 25/08/2025: Numeric-only VM and Alhena 5.3.0
Links for the day
Links 25/08/2025: ‘Panama Playlists’ and Live Nation/Ticketmaster Suit Aims at Class Action
Links for the day
Gemini Links 25/08/2025: Empathy Towards Autistic People and Old Gadgets
Links for the day
Links 25/08/2025: Datacentres Versus Water Supplies and "The IPv6 Divide"
Links for the day
Links 25/08/2025: Data Breaches, Politics, and Financial Strain
Links for the day
GNU/Linux Distros Ought to Replace Firefox (and Firefox ESR) With Something Like LibreWolf
Perhaps it's come to replace Firefox
Father of Julian Assange Said the US Government Was Trying to Bankrupt WikiLeaks, Now the Assange Family Promotes Fake Currencies
Using the name for bad purposes?
Software Freedom Conservancy (SFC) Inc. Lost 2 Million Dollars Last Year and Its Chief Took a Salary Increase of Almost $6,000
Another year or two like this... and the SFC will be bankrupt [...] Hallmark of mismanagement
The "New Techrights" Turns Two Very Soon
Accomplishing something each year is what's important, not merely "finishing" another year
Gulf Nations Leave Microsoft Behind
How much lower will Microsoft stoop in an effort to raise money from oil-rich lenders?
How to Combat IRC Trolls (in Our Experience)
Today I want to share my experience (or knowledge) of how to deal with IRC trolls
The Register MS Needs to Stop Participating in the "Hey Hi" (AI) Hype, But It Gets Paid to Participate in This Hype
the publisher (The Register MS) wants to have it both ways
Gemini Links 24/08/2025: Living With Your Parents, Zürich Zoo, and Macondo
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 24, 2025
IRC logs for Sunday, August 24, 2025
Gemini Links 24/08/2025: Signal on OpenBSD and Keyboard Layouts Compared
Links for the day
Men Who Abuse Women Should Never Spend Over 3 Years of the UK High Court's Time
This demonstrates that we need a reform in the UK
Links 24/08/2025: Microsoft Settles Data Breach Lawsuits and Climate Change Causes Heatwaves, Water Shortages
Links for the day
CachyOS is Rising Fast, But Slopfarms Are 'Googlebombing' It
CachyOS receives more media attention
No Reason for Red Hat Relief Yet (Layoff Rumours)
the execution could be stalled, delayed, or scheduled for some time after people come back from holiday
GNU/Linux 6%, Windows 60% in Venezuela, Suggests statCounter
The cash cows are dying
Mass Layoffs Continue at Microsoft This Month (Remaining Workers See Conditions That Deteriorate)
So far this month (one week remaining) we saw at least two waves of layoffs at Microsoft
How SPAM E-mails With Windows-Centric Files Get Twisted as Linux Threats, Then Slopfarms Spread the Word
Fear, Uncertainty, Doubt/Fear-mongering/Dramatisation
Links 24/08/2025: Heatwaves Threaten Workers, Maldives Versus Press freedom
Links for the day
Gemini Links 24/08/2025: Digital Cameras and Printers
Links for the day
Links 24/08/2025: GAFAM Lie About Pollution and Slop's Carbon Footprint, The Guardian Says Slop ("Hey Hi") is a Bubble That Will Send Stock Markets Into a Freefall
Links for the day
80% of the Sponsored (Fake) Articles in The Register MS Are Promotions of Ponzi Schemes (Unethical Money), the Rest is Banned Chinese Business
Is that an ethical way to make money? No.
The UEFI Restricted Boot 'Time Bomb' is About to Go Off in a Few Weeks
Garrett was the first person to face sanctions (like muting) in our IRC channels because of his abuse; worse yet, he hijacked other people's names and then locked them out of their own accounts
Should Currys PCWorld Start Voiding Warranties of Users of Vista 11?
If a person's laptop has a mechanical issue, should this person replace GNU/Linux with Vista 11 for the repair shop? Only to damage the SSD?
Newer is Not Always Better, and It's Possible That 'Peak' is the Past
People creating their own platforms means progress, whereas centralisation (like moving from blogs to social control media) is the opposite of progress
LLM Hype is Sowing Destruction: It Contributes to DDoS Attacks and Makes the Web Less Accessible (JavaScript "R U Human?" Tests)
If it was googlebot, it would be possible to argue that you'd at least then get referral traffic from Google Search. With LLMs, all you get is plagiarised.
Links 24/08/2025: New York Times Talks About Hey Hi (AI) Bubble
Links for the day
Gemini Links 24/08/2025: Upgrading Debian and Mobile-indifferent Design
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 23, 2025
IRC logs for Saturday, August 23, 2025