Bonum Certa Men Certa

When Former Microsoft Employees Turn Against Microsoft

Jeff



Summary: Thoughts and questions to one who protests against Microsoft's tax dodge

NOW that there are worldwide protests against corporate dodging of tax it seems like a good opportunity to recall what Microsoft does all around the world to just vacuum some money while giving nothing in return.



Our past articles about this serious issue help accumulate examples that include convictions. Microsoft was not always able to change the law to legalise what is essentially tax evasion. One former employee of Microsoft studied what Microsoft had done politically and then charged his former bosses. In his latest post he corrects what he calls a "wrong" banner and points out that "[i]n 2010, the Legislature changed the state's Royalty Tax in Microsoft's favor. The change was led by (wait for it) former Microsoft executive Ross Hunter, Democratic Chair of the Finance committee. The Royalty Tax used to be a .484%* tax on worldwide revenue from software licensing. Microsoft claimed its licensing revenue from its Alter Ego corporate sub-identity in Nevada to avoid the tax. It saved between $1.51 billion and $6.1 billion depending on how you calculate it. However, Hunter changed the tax so the Royalty Tax is now apportioned. The tax now only applies to sales to Washington State customers (not worldwide revenues)."

How is what legal? Well, when a company's cronies write the law, everything is possible. Here is another new example of Microsoft's hypocrisy:

TechFlash reports that Microsoft's General Counsel Brad Smith has called for the Governor to end cuts to higher education and is supportive of an increase to our state's sales tax. Microsoft loves the sales tax because it's a regressive tax - meaning that the poor pay a higher percent of their income in taxes than the rich:

"People earning less than $20,000 annually pay 17.3 percent of family income toward sales and excise taxes and property taxes, the report said. People making between $99,000 and $198,000 each year pay 7.6 percent toward their tax bill. Meanwhill, people in the top 1 percent of earners – those making more than $537,000 a year – pay just 2.9 percent, the report said."

The Institute for Taxation and Economic Policy (ITEP) reports that Washington State already has the most regressive tax structure in the country.

If it weren't for Microsoft's Nevada Tax Dodge and its lobbying effort, Washington State wouldn't have a budget deficit right now. We'll be updating our reporting on this soon (our earlier summary is here).


This is not the only example of such hypocrisy. Bill Gates and his father need not pay tax because they pretend to run a (for-profit and PR) charity, which exempts them for it while they lobby for more tax burden on the rich, excluding themselves of course. The press misreports this all the time because the PR machine of Bill is hard at work.

Techrights was trying to get an interview with the former Microsoft employee who understands the tax dodge very well. I prepared the following questions, but have not received a response yet. The questions were:

- Could you please start by explaining the tax dodge scenario and the political situation that enables it?

- Is there someone in the political system that facilitates or guards Microsoft's practices of tax dodging?

- Have you managed to get in direct contact with officials that have a conflict of interest to explain?

- Have any Microsoft executives been contacted by you or the press to explain or to justify what they are doing?

- Are you familiar with Ireland's status as a tax haven for Microsoft's European presence? Is that similar to what Microsoft is doing in the United States?

- Did you find Seattle's media forthcoming when approached to give coverage to this problem?

- What do you perceive as the best course of action to address this issue?

- Is the raising of public awareness sufficient for change? Are petitions or formal complaints fruitful based on your experience?

We would still like to have those questions answered as they would help shed light on what those who dedicated their entire activism to this issue can educate us best and help address the injustice -- essentially the robbing of the American public for a few billionaires to get even richer.

Comments

Recent Techrights' Posts

European Patent Office Illegally Gutting and Outsourcing Its Functions, Acting Like an Above-the-Law Commercial Business (It Won't Stop at Formalities Officers (FOs) and Classification Slop at the EPO)
breaking/violating laws and conventions
Links 19/09/2025: Lobbyist of American GAFAM Becomes Data Protection Commissioner in Europe
Links for the day
The Right to Punch People (Apparently)
At Brett Wilson, Brett's job title is "Head of Crime" and Wilson normalises calls for violence
 
Gemini Links 20/09/2025: Navigating the Pressures of Modern Life and SpellBinding Accidentally Wrote Another Gemini Server
Links for the day
Links 19/09/2025: Press Freedom Dying in US, Anti-Austerity Strikes in France, and Alan Rusbridger to Leave 'Prospect'
Links for the day
Offloading to the Sister Site
In the interest of not overwhelming readers
Links 19/09/2025: Coffee Club and "SpellBinding is Now Absurdly Fast"
Links for the day
Links 19/09/2025: Media Freedom Ceases to Exist in US, "Consider Dropping Twitter/X"
Links for the day
Gemini Links 19/09/2025: Thinking and Insect Bites
Links for the day
Microsoft E.E.E.: Git Will Now (or Very Soon) Fully Depend on Rust, Which is Controlled by Microsoft
Microsoft now makes Git dependent on Rust, or making Git dependent on GitHub, which is proprietary
Slop or Fake Articles Have Turned Linux Journal From a Pioneering/Trailblazing "Linux" Magazine Into a Nuisance
some sites with former reputation - good reputation - turn into cesspools
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 18, 2025
IRC logs for Thursday, September 18, 2025
Brett Wilson LLP Seem to Have Had Only One Litigation Client in 2025, He Was Previously Charged, Just Like the Serial Strangler From Microsoft (Whom They Now Represent)
Karma is superstition, regulators are not
Project 2030 to Cover How "Project 2025"-Styled Anti-Media Zealots From America Targeted Techrights and Tux Machines
The common denominator is also their attacks on women
Brett Wilson LLP Failed to Meet Deadlines Set by Judge 7 Months Earlier, Tried to Ruin Our Holiday, Then Had the Audacity to Ask Us for Over 3,000 Pounds for Its Own Lateness
As a matter of principle we will never respond to assassin while we are on holiday
On Claims That After Bluewashing Red Hat Will Increasingly Become an Indian Company
Discussed this week (long and detailed)
Americans Attacking British Sites Only Months After They Leave America
We find it kind of funny if not ironic that this site, originally an American site, got legal harassment only from Americans and only months after it had moved to the UK
Despite Losing Over a Quarter Million Dollars a Year Software in the Public Interest (SPI) Gives Helping Hand to Libreboot
SPI's financial state depends a lot on its public image or its reputation
Slopwatch: Google Helps Plagiarism and Sends Traffic to Ripoff Artists
That Google as a company helps spamfarms is noteworthy
If You Want to Know the Future, Listen to the Free Software Foundation (FSF) and Andy Farnell
We're sure the FSF will have plenty of its own output
Links 18/09/2025: A Taliban Ban on Internet Access and Troubled US Job Market
Links for the day
Gemini Links 18/09/2025: Computer Literacy and Accessing Alhena's Database
Links for the day
Links 18/09/2025: US War on Media (Truth Banned, Cancel Culture by the Hard Right), NYT Chief Executive Warns Cheeto is Deploying ‘Anti-press Playbook'
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 17, 2025
IRC logs for Wednesday, September 17, 2025