Summary: Microsoft and Bill Gates are still avoiding the payment of tax which everyone else in Washington is paying; new insights into Microsoft's partial control of national policies

MR. Reifman, a former Microsoft employee who has been pointing out Microsoft's massive tax dodge [1, 2, 3, 4, 5, 6], argues that Microsoft owes Washington over a billion dollars in tax money^*. Bill Gates too has managed to dodge Washington taxes by putting his money inside a tax-exempt investment shell.

These people are screwing the taxpayers of the United States and Reifman is not shy to once again denounce his old bosses and call for federal action against them.

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.

Sadly, Microsoft has so much political power that it is likely to keep the law "fixed" such that it can carry on paying next to 0% in tax.

Using Gates' investments vehicle, the influence in the United States government is increasing further. We have mentioned Rajiv Shah in the following recent posts. He is also gaining influence in the government now.

• Bill Gates' Influence in Obama Administration and Africa Increases Even Further
• Microsoft Looks to Manage “Multi-Million Dollar Budget and Relationship With an Outside PR Agency” to Attack Software Freedom

Shah has this new profile of him at the National Journal. It shows his very strong ties to the interests of Microsoft's Gates.

David Lane, who now leads the anti-poverty campaign ONE, was opening the Bill and Melinda Gates Foundation's Washington office in 2001 when he discovered Shah. Shah had an M.D. and master's degree in economics and had put in stints as a health care policy adviser to Al Gore's presidential campaign and Pennsylvania Gov. Ed Rendell (D). But he had almost no connections to development.

Lane hired the 28-year-old, despite the puzzlement of some executives back in Seattle, because he was a "smart guy who understood economics." It didn't take long for the foundation to realize Shah's potential and spirit him away to the West Coast. "It went from, 'Who's this Raj Shah?' to 'Get me that Raj Shah,'" Lane said.

Not only Microsoft has enormous influence over/inside the government. Last week we gave the Copyright Cartel as an example.

It is encouraging to see that some people -- including Microsoft veterans -- are beginning to speak up about such issues. Some of this is unprecedented although one former manager from Microsoft also helped expose financial fraud inside the company [1, 2, 3]. ⬆ ___ ^* Microsoft has similar schemes going on outside the United States. In Europe, for instance, the tax haven is located in Ireland [1, 2, 3, 4, 5].