Bonum Certa Men Certa

Yet More Microsoft Staff (Now Suzan DelBene) Enters Government to Assist Microsoft's Looting of the System

Seattle by night



Summary: Microsoft veterans sneakily take over key positions in government and enable Microsoft to not pay tax, passing all the burden to poor people and leading to cancellation of state programmes

FROM a Microsoft employee who at last saw the light and decided to expose his former employer for what it does to avoid paying tax (financial misconduct notwithstanding) come some new posts that help reveal how Microsoft uses politics to essentially loot the public at large. The latest posts are:



i. Thank Ross Hunter for Making Microsoft's Record Profit Untaxable

Under Democratic Rep. Ross Hunter's leadership in the Washington State Legislature, Microsoft's licensing revenue is no longer taxable in Washington. Hunter led the change to Washington's royalty tax so that only licensing revenue sold to Washington State customers is taxable. Prior to 2010, worldwide royalty revenue was taxable.

Hunter is a former 17 year veteran of Microsoft, now head of the powerful finance committee. Rather than apportion the royalty tax (which resulted in only a tiny gain in state revenues), Hunter could have adopted stricter enforcement language around out of state tax transactions such as was proposed by the state's Department of Revenue. Since 1998, Microsoft has used a small office in Reno, Nevada to record its worldwide royalty profits - avoiding nearly $1.25 billion in tax liabilities.


ii. Now for what really matters...

If there's one thing I learned the past year working the Microsoft tax dodge issue, it's that the state legislature is pretty well bought and paid for by corporations like Microsoft. Who would have thought Rep. Ross Hunter would lead the charge to raise taxes on voters while giving Microsoft a giant back door tax cut? Well, at least today, we'll see what voters think of Ross Hunter's efforts.


iii. Microsoft's Nevada Employees Probably Shouldn't Joke About Criminal Activity

If you want to know what the Kool-Aid tastes like at Microsoft, check out this clip of its Nevada Licensing employees offering up their own "I'm a PC" anecdotes. It's not quite as cringeworthy as the Windows 7 Launch Party and not as bizarre as the IE8 vomit girl ad, but it's definitely painful to watch.

I was most intrigued by this brief segment in which an apparent Reno-based Microsoft Licensing employee jokes, "I'm a P.C. and I'm a criminal." On the wall in the background, there appear to be pictures of two to three other mugshot photos - perhaps also Reno employees? Exactly what is she referring to?


iv. An Update on Microsoft's Nevada Tax Operations and Washington State's Budget Deficit

* Most people in Seattle (and Washington State), know nothing at all about Microsoft's Nevada tax practice in part due to the fact that The Seattle Times has never reported the story.

* Local coverage of this issue does not appear to be improving. e.g. The Gates Foundation gave $400,000 to local news blog Crosscut.com, which later was caught removing anti-Microsoft sentiment from a published editorial by the University of Washington's Bill and Melinda Gates Chair of the Computer Science and Engineering Department.

* Perhaps due to the lack of awareness of his actions, King County voters re-elected Rep. Ross Hunter. Diane Tebelius, Hunter's Republican opponent never mentioned the Microsoft tax dodge, though she was briefed on it (by me), presumably because she did not want to alienate Microsoft employees in her district.


v. Ex-Microsoft Executive to Lead Washington State Department of Revenue

Today, Governor Gregoire appointed former nine year Microsoft executive Suzan DelBene to run Washington State's Department of Revenue. DelBene's husband Kurt is President of Microsoft's Office Division. DelBene's basically a marketing executive, although she recently ran unsuccessfully to unseat Congressional GOP Rep. Reichert. As far as I know she has no formal background in tax law. Full disclosure: I used to work with Ms. DelBene and for her husband Kurt at Microsoft in the early 1990s.

[...]

The Seattle Times has reported in the past that Mrs. DelBene is also a longtime friend of Representative Ross Hunter. Hunter is the 17 year ex-Microsoft veteran who as Democratic chair of the powerful legislative finance committee led the move to apportion the state's royalty tax, getting Microsoft off the hook for up to $145 million annually in taxes and potentially over $1.24 billion in back taxes, interest and penalties. Since 1998, Microsoft has recorded the bulk of its software licensing revenue in Nevada to avoid Washington State's royalty tax. This blog regularly questions the legality of this accounting practice.


Rick Perry is already pulling a fast one and it is worth emphasising that Microsoft has debt to repay while it claims to have possession of money (we are sceptical of it). To quote a recent article:

Microsoft (Nasdaq: MSFT) just borrowed $6 billion even though it has roughly $40 billion in idle cash. Crazy.


Crazy indeed. Why borrow money when you already have money? As other sites have been pointing out, this may indicate that Microsoft is hiding or distorting something, just as it distorts numbers in its reports to the SEC. But anyway, sticking to the subject of tax, here is some information about the Microsoft veteran who enters the government to become head of Department of Revenue. Amazing!

DelBene, a former vice president for marketing on Microsoft's mobile communications team, contributed $2.3 million of her own money to her campaign. She is married to Kurt DelBene, the current president of Microsoft's Office business.


Crony capitalism in action. For more about her, see the text here. Todd Bishop claims that "Microsoft pedigree isn't enough to ensure a Congressional victory in the company's home region." That's a straw man argument. Nobody suggested that Microsoft pedigree alone is enough to assure such a position. Bishop at least mentions this: "Also of note on the state level: Incumbent state Rep. Ross Hunter, another Microsoft veteran and Democrat, is facing a tough fight for his seat. He's leading Republican challenger Diane Tebelius, but the race was still too close to call as of early this morning. Hunter has come under criticism for helping to enable the company's practice of recording software royalty revenue in Nevada, reducing its tax bill in its home state by an estimated $100 million a year."

The same blog said right in the headline that "Ex-Microsoft exec DelBene to head state revenue department" and ABC (Bill Gates-sponsored) hosted content from AP, saying that "Gov. Gregoire Appoints Suzan DelBene to Cabinet" (nothing at all about the Microsoft tax controversy).

Former congressional candidate Suzan DelBene was appointed director of the state Department of Revenue on Tuesday, with Gov. Chris Gregoire saying that the former Microsoft executive "has the knowledge, skills and experience needed to guide the agency through what is a transformative time for the department and the state."


This article from AP also appeared in MSN. Microsoft ought to like such shallow reporting which bothers not at all with the real issues. There is more news from Reno, where Microsoft manages to arrange the Washington tax avoidance. "Angle Appears at Reno's Microsoft Licensing" says the headline.

Lately, every day feels like Election Day. The frenzy is everywhere from those TV commercials, to sign-crowded intersections. And protestor-frenzy, in Reno to greet Sharron Angle as she made a Monday visit to Microsoft Licensing off Neil Road. Microsoft would not let us in…we weren't exactly invited. Angle's campaign did not even tell us ahead of time that she was appearing. Outside was a group of protestors, comprised of a man in a chicken outfit, 2 Reid campaign workers, one unemployed volunteer, and 3 members of local 3, the operators-engineers union. They told us they're not getting any work. Union apprentice Ronald Feemster told us he'd "like to see somebody in office that might actually do some good for northern Nevada." As to why he doesn't blame the current administration, including Harry Reid, he told us, "Because I feel it was inherited."


Elsewhere in the news it's now announced that many programmes are being cut in Washington and citizens are furious. One site has nearly 1000 comments posted in response. It contains a lot of finger-pointing, with Microsoft and xenophobia being the lead topics.

It ought to be added that Microsoft's avoidance of tax and the cronyism which enables it were never a US-only issue. Microsoft was found guilty in other countries and in Europe it is using Ireland as a tax haven, with severe consequences to the whole of Europe. From the new article titled "Consequences of the Irish Bailout":

The key bailout test was whether or not Ireland would retain its 12.5% corporation tax, which has attracted a number of giant multi-nationals to relocate there -- such as Google (GOOG), Pfizer (PFE), and Microsoft (MSFT) -- much to the annoyance of other European countries, especially France and Germany who had this at the top of their conditions hit list. The fact that Ireland has apparently retained sovereignty over the corporation tax bodes well for eventual economic recovery as the relocated multi-nationals account for more than 70% of Irelands exports and generate more than 50% in corporation tax revenues, without which Ireland truly would be bust for the next decade.


Also see this new case of blackmail, titled "Microsoft, Hewlett-Packard Warn Ireland on Tax, Telegraph Says". Well, via a lobby group, the Chamber of Commerce, Microsoft is driving its interests in Europe, at the expense of mere people as opposed to corporations. The article says: "The American Chamber of Commerce in Ireland warned the country that an increase in its corporate tax as part of a European Union and International Monetary rescue package may damage foreign investment, the Sunday Telegraph reported." The Irish Times has published an article titled "The people person at Microsoft", but Microsoft does not care about people; it cares only about its shareholders who are mostly in the US.

One can conveniently ignore all of this, but Techrights will not.

Recent Techrights' Posts

Representing and Speaking for Animals
If I ever choose to take this matter to tribunal with animals-centric NGOs on my side, it'll get some press coverage for sure
Slopwatch: Fake Articles About "Linux", Slop Images in VentureBeat, Linux Foundation Spam Made With LLM Slop and Slop Images
The only relief or upside - if any exists - is that the pace of slop was down a bit this week
 
Slopwatch: Fake Articles About "Linux", Google Helps Ponzi Schemes and Slopfarms in Google News
Slopfarms are a real pain
Gemini Links 29/08/2025: Retiring at 62 and URL Filtering HTTP(S) Proxy on Qubes OS
Links for the day
Links 29/08/2025: Lisa Cook Sues Convicted Felon and Backdoor Mandate in UK Resisted
Links for the day
Links 29/08/2025: Arti 1.5.0, War on Public Health (CDC), and Slop 'Bros' Made to Pay for Their Mass Plagiarism
Links for the day
No, 4Chan is Not Fighting for You by Lawyering Up Against Ofcom (UK)
Don't mistake proto-fascists for people who "fight for you". They don't.
Downlplaying the Impact of "UEFI 9/11" is a Losing Strategy
we won't publish much whilst on holiday
In Many Places in the World Vista 11 "Market Share" is Going Down, Not Up
In some countries Windows is already down to third place or lower
More Microsoft-Connected Layoffs, at Least Third Time This Month! (Also Another Death on Campus)
Microsoft as a "gaming" company is where studios, projects, games, and even developers come to die
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 28, 2025
IRC logs for Thursday, August 28, 2025
Gemini Links 29/08/2025: Poems, Games, and Java 25 Performance
Links for the day
Links 28/08/2025: Greenland 'Interferences' by US and Skinnerboxes to Get Banned in Korean Schools
Links for the day
Richard Stallman (RMS) Talk in Ethereum Cypherpunk Congress Will be Remote
This past week RMS received lots of accolades online
The Register MS (Run by Microsoft Operatives): Free Software is Putin, Hence Evil and Dangerous
The current editor in chief is an American Microsofter, the previous one went to work for Google (US)
Links 28/08/2025: Chatbots Distorting/Fabricating History and Also Driving Suicide
Links for the day
Gemini Links 28/08/2025: Back in Japan and Why "Hacker News" Sucks
Links for the day
A Much-Needed Wake-up Call to Users of Wordpress.com, Blogspot, Substack and All Those Other Outsourced (and Centralised) Platforms
There are several lessons in there
The UEFI 9/11 - Part II - Campaign of Censorship and Defamation Against Critics
In dictatorships, humour serves an important role. It's tragic.
Open Source Initiative (OSI) Resists Software Freedom, Even by Attacking Its Own
The OSI is compromised
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 27, 2025
IRC logs for Wednesday, August 27, 2025
Slopwatch: linuxsecurity.com, Slopfarms in Google News, and More
Some readers of ours end up sending us links that are from slopfarms, not realising those are slopfarms
Gemini Links 27/08/2025: Katrina Memories and Google Versus Software Freedom
Links for the day
Links 27/08/2025: Police Against Media Freedom in the UK, Energy-Hungry Countries Targeted by China
Links for the day
Microsoft Windows Fell to All-Time Lows in Egypt This Summer, Vista 11 Adoption Decreases While GNU/Linux Increases
Vista 11 is going down rather than up
Links 27/08/2025: Microsoft Demoralises Staff With Slop Demands, Leaving Mastodon Explained
Links for the day
12 Hours Ago The Register MS Published a Fake (Paid-for) Article, But This One for a Change Did Not Promote a Ponzi Scheme
There are also Free software alternatives, but they don't pay The Register MS for "synthetic" so-called 'journalism'
More People Need to Call Out and Put a Stop to Serial Sloppers
Unless slopfarms are stopped, people will read and share Microsoft propaganda made by chatbots
Gemini Links 27/08/2025: Headphones and Tartarus
Links for the day
Morale at Microsoft is Terrible (Proprietary Plagiarism Machines Have No Future, LLM Slop is a Bubble)
The slop sceptics/critics are going to have lots of "told you so" moments
GNOME "governance issues, staff reduction, etc." amidst Albanian whistleblowing and women trafficking
Notice the connection to Software Freedom Conservancy (SFC) and GNOME
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, August 26, 2025
IRC logs for Tuesday, August 26, 2025