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

SLAPP Censorship - Part 196 Out of 200: Sending Someone to Our Doorstep to Ship Approximately 5 KG of Legal Papers (Instead of to Our Representatives)
it is not about law, this is lawfare
Same Name/Brand, Not the Same Project/Product
What is Linux becoming?
Germany, Like Switzerland, Will Dump Microsoft's Proprietary Software and Disservices, Then Dump Windows for GNU/Linux
This impacts not only the Windows revenue; this corrodes any "rents" Microsoft was getting from "subscriptions"
There Are Likely Over a Thousand Internet Relay Chat (IRC) Networks Online, Net Gain of 16 Seen This Month by Andreas Gelhausen's netsplit.de
It's good that they're still tracking that sort of stuff
SLAPP Censorship - Part 194 Out of 200: The Court Needs to Also Look Into Microsoft-Controlled Restricted Boot Advanced by An American (Garrett) to Promote Monopoly and Back Doors Everywhere
Kill switch sold as 'security' is like euthanasia sold as a cure
Linux Kernel Becoming a Slopfest - Part 7 - Infested With or Plagued by Bot-Generated Slop, Committed by Microsofters
Slop is a security threat; even the person committing slop to Linux might not be aware that there's a back/bug door in the code
Edward Snowden Lost His Voice, Then His Leaks Lost Exposure (Access Denied)
When states want to deny people access to some information they have many tools at hand
 
The Register Got Paid Today to Spew Out "AI" Almost 50 Times (Keeping the Pyramid Scheme Buzzing in Headlines)
paid-for spam
IBM's Anderon Already Smells Like a Fraud and IBM Insiders Heckle the Lies From the Management
Sabine Hossenfelder recently made some videos which explain in simple terms why IBM is lying and has already lied about this for years
Links 23/09/2026: Mass-Surveillance by Clownflare and "Data Centre" Crunch Commences
Links for the day
3 Years Divorced From Americans
Next year we plan to pursue the UK's Court of Appeal
The Register MS Uses Slop About Slop (in Images)
Months ago we caught The Register MS using slop for text as well
SLAPP Censorship - Part 195 Out of 200: Two Years Since Garrett, Graveley and Lozza Worked in Parallel to Censor Techrights
It began in September 2024, shortly after we had sued Garrett
Linux Kernel Becoming a Slopfest - Part 8 - In Conclusion
this can invite more SCO-like problems in the future
Microsoft Shuts Down More Studios, Morale Low, More Mass Layoffs Ahead of Reports
They pretend it's not happening or that it's a lot smaller than it actually is
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 22, 2026
IRC logs for Tuesday, September 22, 2026
Gemini Links 23/09/2026: Ljubljana, Poetry, and FORTRAN
Links for the day
The EPO's Central Staff Committee (CSC) Shows Job Insecurity at Europe's Second-Largest Institution
Who would want to join a company with such low job security?
There Are Thousands More Microsoft Layoffs (Including Silent Layoffs), Not Hundreds
Microsoft does have layoffs and today is no exception (except Microsoft talks about it)
Gemini Links 22/09/2026: Disability Studies, Slop Boosters, and TkInter
Links for the day
Links 22/09/2026: Flock is Collapsing Amid Mass Backlash and Internet Society Collaborates With the 'Epstein Class' (Trafficking of Women)
Links for the day
Raspberry Pi Has Microsoft Secrets Inside, Now DRM
now we deal with SBCs that have DRM in them, put there for commercial reasons
2 Hours Ago The Register MS Published a Page That Says "AI" 42 Times Because It Was Paid to Do So
Still inflating the bubble for money
Gemini Links 22/09/2026: Scout Night, Cybernetic Capitalism, and Thoughts on Companies Forcing People to Adopt Plagiarism Engines
Links for the day
Links 22/09/2026: "An Arsenal of Surveillance" and Slop Bots Suggest Starting Wars
Links for the day
SLAPP Censorship - Part 193 Out of 200: Breaks GNU and Linux, Tries to Silence Critics, Loses All Money, Looks for Microsoft Allies and Sponsors
The latest emotional knee-jerk reactions serve to confirm what we have long said
Things Will Only Get Better (as We Go Backwards)
It only gets better. If you go back in time.
UK High Court Shows SRA is Totally Useless in Curbing SLAPPs, This Has Impact on Our Reporting on the SRA Next Week
We'll carry on our coverage and soon finish the current series that so we can get on with more time-sensitive ones
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 21, 2026
IRC logs for Monday, September 21, 2026
Links 21/09/2026: "Lies of the Hey Hi (AI) Industry" and Solar Power Is Getting Cheap
Links for the day
Gemini Links 21/09/2026: Equinox and Beginner's Guide to Gemini
Links for the day
Links 21/09/2026: "Back On My Bicycle" and American Regime's War on Media Escalates Further
Links for the day
SLAPP Censorship - Part 192 Out of 200: The Hired Guns of Garrett and Graveley Sent Us USB Sticks (One to Me, One to My Wife) Showing Lozza Talking to Garrett About Censoring/Deplatforming Techrights the Same Time Graveley Was Copy-Pasting Garrett's Lawsuit
Next year we plan to bring this matter to the Court of Appeal
Linux Kernel Becoming a Slopfest - Part 6 - Seeing Who Contaminates Linux With Slop (And Also Admits It)
Today we begin looking at some culprits
2026: The Year Galleries Realised the Need to Flag or Cull Slop Images
Society needs to shun slopfarms, people who use LLM slop (for anything at all), companies that use bots (which they dub "agents"), and so-called 'coders' who volley garbage into project and software hubs
Software Freedom Day Celebrated in 5 or 6 Continent
Software Freedom Day (SFD) 2026 was big this year
SLAPP Censorship - Part 191 Out of 200: Garrett, Graveley and Lozza
They talk to and coordinate with one another
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, September 20, 2026
IRC logs for Sunday, September 20, 2026
Gemini Links 21/09/2026: Digital Hoarder, GTD, Minimalism vs Digital Minimalism, Rejection of LLMs
Links for the day