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

Techrights Will Never Capitulate to Threats From Microsofters
Set aside violence against women and all sorts of other things; it's not about personal issues
The Microsoft-Led Open Source Initiative (OSI) is Hurting, It'll Try to Hurt Its Critics and Exposers Now
The OSI's chief meanwhile issues a bunch of meaningless waffle, a sort of "damage control" or "face-saving" platitudes
Is Ubuntu Compromised? Push Away From GNU and GPL Led by Army Officers.
Perhaps people should ask Canonical what the thinking behind it was...
 
Gemini Links 20/03/2025: Ubuntu Shafting Common Sense and Blocking of Bots of the Net
Links for the day
Links 20/03/2025: IBM Layoffs (Thousands Reportedly Laid Off) and Lots More Corruption in the White House
Links for the day
Apple is Still an Enemy of Open Standards and Software Freedom
Apple did not get any more benign
Gemini Links 20/03/2025: Wanting the Future Back and "Society That Lost Focus"
Links for the day
Fake Articles About GNOME
betanews again
Richard Stallman's Personal Site Says He's Looking for More Opportunities to Speak in Europe
He does not charge people for the talk
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 19, 2025
IRC logs for Wednesday, March 19, 2025
Debian Pregnancy Cluster, when I stopped using IRC
Reprinted with permission from Daniel Pocock
Mass Layoffs at IBM Confirmed
Thousands believed to have been laid off
Slopwatch: linuxsecurity.com, cybersecuritynews.com, gbhackers.com, and techmonitor.ai (Fake 'Articles' About "Linux")
Almost all of them (75%) show up in Google News
Gemini Links 19/03/2025: go-gopherproxy and 'Small Web' as Self-expression
Links for the day
Links 19/03/2025: Attention's Cost and Media Still Besieged by Dictatorships
Links for the day
Phoronix Seems to be Trying to Kill Discussion About "Asahi Lina" and the Anti-Torvalds Brigade
Our informed guess is that by reporting this news Phoronix got caught up in flamewars that divide and fracture the community
Claiming to Love What You Reject or Seek to Totally Own, Control
The Russia analogy is political
LinuxTechLab Became Just LLM Slop and SPAM
Another dead (former "Linux") site
The Rust Song
It's about control
Facts on the Case Already Disclosed by US Authorities
NGOs in the UK (several keep abreast of this, judging every recent move) are truly unimpressed
The Times Group (and The Times of India) Basically Died Again
This time a death by LLM slop/plagiarism
The Death of The Economic Times (India Times): LLM Slop Presented as 'Articles', Containing Errors and Revisionism
They'd be better off shutting down operations with some dignity than resort to bots giving the false impression (illusion) of authorship
In Belgium, Android is Finally Measured as Bigger Than Windows
In Belgium, the lobbying capital of Microsoft, it wasn't easy to get there
"Rust People" Are a Threat to BSD Too (the Licence Isn't the Main Issue, Nor is the Proprietary Microsoft Hosting)
BSDs aren't written in Rust, so BSD developers should buckle up
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 18, 2025
IRC logs for Tuesday, March 18, 2025
Sami Tikkanen Explains Rust Language and Its Goals
"Sompi" (the nickname of Sami Tikkanen) has weighed in
Links 19/03/2025: Gardening Season and the Web Without an Audience
Links for the day
Mauritius: Windows at All-Time Low, Down From 96% to 17%
Put in simple terms, people choose to connect from the "phone" (running Linux), not some laptop running Windows
Many IBM Layoffs Reported Today in Europe and North America
there's definitely a lot going on today
The GNU Manifesto is 40. Here's the Original Print (1985).
Some unpleasant people want to replace GNU with Microsoft-controlled (GitHub) Rust copycats
Unixmen Seems to Have Died After Turning Into a Slopfarm and Spamfarm, Is LinuxSecurity.com Next?
Better to not publish anything at all than to resort to fake garbage.
What Happened to the Open Source Initiative (OSI) Elections: More People Begin to Speak Out
Kuhn set another bonfire ablaze
Links 18/03/2025: ‘Meritless’ Defamation Suit Thrown Out, InterDigital Software Patents Headed for the Bin Too
Links for the day
These Strange Web Statistics From The Bahamas Show Windows Falling From 93% to Less Than 5%
There are about half a million there
Gemini Links 18/03/2025: Weather and Resisting "MAGA"
Links for the day
Links 18/03/2025: New Apple Blunders and Windows Disliked by Users
Links for the day
Once Again 'Losing Track' of Who the Clients Are, The Serial Harasser and Strangler from Microsoft
Timing is everything
2025 Rumours of IBM Layoffs in Marketing Likely True, Online Powwow Drops More Clues
Expect over 10,000 layoffs this year (at IBM alone)
Android (With Linux) Rises to Record Highs in Hong Kong and in Macao
Looking quite bad for Microsoft
Distractions. Distractions Everywhere.
distracting from the real solution
EPO Concerns About the Education and Childcare Allowance Reform (ECAR) and School Liaison Officer (SLO)
The public deserves to know as it impacts thousands of families
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 17, 2025
IRC logs for Monday, March 17, 2025