Microsoft dodges $100m of taxes in Washington state with job loss threats. Gets $1.25b tax amnesty.

[onehandle]

Microsoft wins its $100M tax-break and amnesty from broke-ass Washington State

"As the Washington State Legislature wound down its special session to close a $2.8 billion fiscal deficit, Microsoft's General Counsel Brad Smith successfully used a carefully timed press conference making veiled threats about tax rates as a concern regarding future job expansion in Washington State. Led by Finance Chair Rep. Ross Hunter, a 17 year former Microsoft manager, the Legislature gave Microsoft two huge gifts: a $100 million annual tax cut and an estimated $1.25 billion in amnesty on its 13 year Nevada tax dodge. To make ends meet, the Legislature cut $120 million from K-12 education and $73 million from university budgets. It also raised the general tax rate on businesses from 1.5% to 1.8% and created new '7-11' taxes on the Average Joe on beer, soda and candy. The benefits of 4,700 at-risk unemployed people with disabilities will expire in the coming year. No word on how cash-strapped Washington plans to address Smith's concerns about its educational system and transportation infrastructure.

http://www.boingboing.net/2010/04/23/microsoft-wins-its-1.html
_____________________

Microsoft Wins Nevada Royalty Tax Cut and Tax Amnesty; Reports Record Revenue

Struggling to close a $2.8 billion fiscal deficit, the Washington State Legislature ended its recent special session with two huge gifts for Microsoft:

1) It gave Microsoft an effective $100 million annual tax cut by revising the definition of the royalty tax. Under the old law, all of Microsoft's $20.7 billion annual software licensing sales were taxable in Washington state at .484%. Under the new law, the royalty tax will be apportioned so that only the portion of sales to Washington State customers would be taxable, a tiny fraction of Microsoft's taxable revenue.

2) It also gave Microsoft amnesty on an estimated $1.25 billion in unpaid taxes, interest and penalties that the company has avoided paying since 1997 by reporting this revenue from a small Reno, Nevada office. The state's Department of Revenue has ignored this practice and refused to address precedents that call the legality of Microsoft's accounting into question.

http://microsofttaxdodge.com/2010/04/microsoft-gets-nevada-royalty-tax-cut-and-tax-amnesty.html?all

[Muddy Waters Guitars]

1. Especially outrageous

Given how much Washington State has supported Microsoft's very origin-- not to mention its continuing capacity to run itself-- via public backing of education and infrastructure. And as gratitude for the state's help, Bill Gates turns around and moons a state in crisis. Unacceptable, and Microsoft will pay for it.

[Dont_Bogart_the_Pretzel]

2. Micro$oft gets a tax break even after they outsource jobs to India.

http://www.zdnetasia.com/microsoft-s-india-outsourcing-raises-protests-39139020.htm
Microsoft's India outsourcing raises protests
By Staff, CNETAsia on July 3, 2003
Microsoft has started to shift some of its operations from the U.S. to India, a move which could leave hundreds of American workers jobless.

According to U.S. daily Seattle Times, the Redmond, Wash.-based software giant is relocating its customer support work in Texas and North Carolina to India. The two centers, which handles e-mail and phone queries on Microsoft software, currently employ about 800 workers each, said the report.

While the firm has not decided how many people will be impacted by the move, Seattle-based Washington Alliance of Technology Workers claims hundreds of jobs could be lost.



http://www.lawgazette.co.uk/news/microsoft-outsource-general-legal-work-india
Microsoft to outsource general legal work to India
Thursday 18 February 2010 by James Dean
Software giant Microsoft will begin outsourcing general legal work to India after signing a deal with legal process outsourcing (LPO) company CPA Global. The news comes as CPA outlined plans to expand its Indian workforce from 600 to 1,000 by the end of 2011, and hinted at opening another outsourcing centre.

CPA said that it will be taking on ‘multi-jurisdictional legal research’ for Microsoft, but could not give further details, citing client confidentiality. Microsoft has outsourced intellectual property (IP) work to CPA since 2005, although no lawyers work on the IP team.



I'm so glad I ditched Microsoft a long time ago.

[Greyhound]

3. Hell, they've received state grants for outsourcing jobs.

Oh but wait, it's not their fault for taking advantage of corrupt officials and their legalization of crime.
:eyes:

[onehandle]

5. That's crazy in this era. Outsourcing companies are enemies of America. nt

[Generic Other]

4. I am left fuming and speechless

If I start, I'll sputter and fume and explode like a damn volcano, so I'll just take deep breaths out of a brown paper bag so i don't hyperventilate.

My college will make up for the deficits by cutting classes and laying off part-time faculty.