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Not Just Apple, How Microsoft Sidestepped Billions In State Taxes
reifman writes "Apple's not the only company to save billions in taxes through Nevada as The New York Times reported yesterday. Here's how Microsoft's saved $4.37 billion in tax payments to Washington State and how it's led indirectly to $4 billion in K-12 and Higher Education cuts since 2008. 18% of University of Washington freshman are now foreigners (because they pay more) up from 2% six years ago. Washington State ranks 47th nationally in 18-24 yo college enrollment and 48th in K-12 class size. This hasn't stopped the architect of the company's Nevada tax dodge from writing in The Seattle Times: 'it's [Washington] state's paramount duty to provide for the public education of all children. Unfortunately, steady declines in public resources now threaten our ability to live up to that commitment.' Yes, indeed."
Does geeknet, Inc. pay accountants to minimize their tax burden?
Do you even lift?
These aren't the 'roids you're looking for.
It seems to me all the states are in a race to the bottom to make big companies come to their state. The end game is nobody pays taxes, because states are too afraid of losing companies in their jurisdiction. The only way out is for all the states to gather together and put an end to these races to the bottom.
I'm shocked....shocked, I say! Billion dollar companies hiring lawyers to create, and then exploit tax loopholes for their own (and their shareholders') benefit? There ought to be a law...oh wait!
Why is it that when CEOs are payed ridiculous compensation packages people say that "to attract the best talent you have to pay," but when it comes to teachers people say "they should be doing it for the love of it, not the money."
http://www.rootstrikers.org/
What do you think Microsoft owes you, and why?
-jcr
Because MS uses the infrastructure and expects the rest of us including its workers to pay for the right to work. Where I come from that is slavery when you work for free. True the student should pay for some of it, but MS is the benefactor in recruiting CS students from U of Washington. Infact, U of Washington is cutting its computer science program from lack of funding.
Who gets hurt now? Not the students but Microsoft. It is also not fair for Microsoft to soley pay either as its a public good that benefits other employers in the area and a level tax keeps it fair that everyone pays and benefits.
Businesses use roads to ship products, uses the military to keep the world safe to do business, businesses benefit the most from IP laws, and free trade. I would even say they benefit a lot more than you nor I. IP laws and free trade hurt us more than anything. It is there to benefit employers who do not pay for it but expect it others to pay for it then go in a right wing circle jerk about the evils of welfare moms when they are the worst ones.
MS did the right thing by avoiding taxes as an individual corporation. However, the loopholes need to be closed. Austerity will come to the US soon and you and I will end up paying for things your employer uses through forced higher taxes.
http://saveie6.com/
They're not defacto rulers. They just pay an internationally competitive tax rate.
Forget what you think the tax rate should be... what is the most you can charge before the companies leave the country.
Not only do companies need to offer competitive prices to make sales... countries need to offer competitive tax rates.
That doesn't make the companies the rulers. It merely forces you to be reasonable. If doing business in your country costs the company more money then other places then it isn't reasonable.
Companies will take a zero sum of the whole thing. So if you want higher wages, that's fine... it just gets added to the total cost of doing business. You want to offer healthcare to people? Again, it just get added.
Every time you add something it reduces the amount you can take in taxes before you cross the line and it becomes cheaper to do business elsewhere.
So be careful with it. If you want the tax money, you'll probably have to make doing business cheaper by skimping on something else. Maybe loosening regulations. Maybe making labor cheaper. Whatever. But if you make it too expensive to do business in the US, they'll leave.
Game over. Then you get ZERO in taxes. They are out of your jurisdiction so the regulation is irrelevant. And labor policies are also irrelevant because everyone is unemployed.
It's a balancing act. Don't cross the line.
I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
The most "fair" tax is wealth, not income. Taxing income hold back those who are trying to gain wealth, so the wealthy (those with the power) prefer taxing income. Not to mention that the rich live off billions with zero income. What were the tax bills on Steve Jobs the last 5 years of his life? He made $1 in salary and didn't cash out his stock, instead, he hoarded it and borrowed against it, which allows him to spend it without being taxed on it.
But taxing wealth will never happen (except at death, when it is essentially income for others) because the rich don't want it, and counting wealth is hard.
Learn to love Alaska
College is for the unmotivated or those who have to be spoonfed their information.
Yeah, you're right.
Let's all hope all the medical staff you ever meet isn't self-taught.
Or that building you live in isn't designed and made by a self-taught architects and builders.
Or that your car, computer, mobile phone, blender, pace-maker etc. are not products someone who's self-taught banged together in their garage out of bubblegum and lint.
Mit der Dummheit kämpfen Götter selbst vergebens
Even if I believed you (and claims like these are a dime a dozen on the Internet), it's at best an isolated case. Teaching yourself PHP is hardly brilliance. Anybody can do it. Teaching yourself to code well, that's a whole other ballgame. The mere fact that you didn't say "I taught myself C++" or "I taught myself Java", but in fact, picked out a language that could best be described as the BASIC for the 21st century suggests to me that your proof of why higher education is needed, not why it isn't.
I'll wager you're the kind of talentless hack that I have to clean up after. I was paid by the hour by a friend of mine's company to fix up a PHP catastrophe coded by some assholes who actually got away with $40,000 for a site that violated every notion of security and best practices. I made $20,000 on it, so by your calculation I'm the talentless chump, but by any reasonable standard, the assholes who ripped off a company for $40,000 for a product that wasn't worth taking a shit on would have been the talentless ones.
The world's burning. Moped Jesus spotted on I50. Details at 11.
The only ones to blame, are not Microsoft who followed the tax laws, but the poltiicians who failed to REWRITE the tax laws such that MS and other corporations would have to pay on all their income (since they reside in washington).
Failed to REWRITE the tax laws?
I see you are totally unfamiliar with Washington State tax policy.
The state has bent over backwards giving concession after concession to Boeing, Microsoft, Starbucks, Amazon, to keep them from moving out of state lock stock and barrel. Not only have the rewritten the tax laws, they have done so repeatedly and done so in a manor that these companies qualify for special exemptions, carefully worded so as not to call attention, but exemptions that realistically can only be taken advantage of by these big companies.
See http://dor.wa.gov/content/findtaxesandrates/taxincentives/incentiveprograms.aspx for a partial list of highly preferential tax dodges.
Once passed, these tax breaks are never subjected to a vote again.
Sig Battery depleted. Reverting to safe mode.