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Protesters Blockade Microsoft's Seattle Headquarters Over Tax Breaks

reifman (786887) writes "A thousand unionized healthcare workers protested outside Microsoft's Seattle offices over its Nevada tax dodge on Friday. Microsoft shareholders have pocketed more than $5.34 billion in tax savings as Washington State social services and schools have taken huge cuts. In a hearing Wednesday, the Supreme Court suggested it may hold the Legislature in contempt and order it to repeal all tax breaks to restore proper funding to K-12 schools and universities." I suspect Microsoft's lawyers are careful to engage in legal tax avoidance rather than illegal tax evasion. Geekwire notes "The South Lake Union satellite facility is not a major office for Microsoft, compared to its presence in Redmond. It’s not clear why the workers didn’t protest at Microsoft headquarters."

12 of 246 comments (clear)

  1. South Lake Union vs Redmond Headquarters by Anonymous Coward · · Score: 5, Insightful

    I suspect they protested at S. Lake Union because that is very close to downtown Seattle and an extremely visible location. Microsoft Campus in Redmond is in the in a much more suburban atmosphere, it would be much less of a visible protest there.

    1. Re:South Lake Union vs Redmond Headquarters by fuzzyfuzzyfungus · · Score: 4, Insightful

      I suspect they protested at S. Lake Union because that is very close to downtown Seattle and an extremely visible location. Microsoft Campus in Redmond is in the in a much more suburban atmosphere, it would be much less of a visible protest there.

      There's also the fact that the campus is likely mostly private land, while downtown areas tend to have public ways near them.

      Depending on the local PD, your right to peaceable assembly may or may not be treated as adorably fictitious and/or a good chance to break out the cool 1033 program toys and play soldier; but you don't even have a theoretical one if you can just be rounded up for trespassing before things even start.

      Trying to protest on MS's campus would just make it a question for PR of whether the visibility is lower for ignoring you and keeping the cameras away, or having you hauled off for trespassing before you make too much noise.

  2. well... by thieh · · Score: 2, Insightful

    The difference between Microsoft-style tax avoidance and tax evasion is that MS just donate to politicians to reduce the amount of taxes they pay in the former while you don't pay politicians in the latter

    1. Re:well... by cyn1c77 · · Score: 4, Insightful

      So it's rational to give large companies tax breaks to keep them in your city as a way to keep your economy strong. It may seem unfair, but all these cities and states have done enough research to conclude that doing tax favors for these big companies is worth more than taxing them at regular rates and losing the employment. So it's neither illegal or irrational on the part of the government or the corporations.

      It doesn't seem unfair, it is unfair.

      The big companies get tax breaks. The politicians get kickbacks, lobbying, and stay in office. The regular citizens pay higher taxes to make up for the company and the politician screwing them.

      Microsoft employs >40K employees in the Seattle Metro area, while the other 3.6M residents (literally the 99%) get screwed.

  3. actually it is quite clear, but who RTFAs? by udachny · · Score: 2, Insightful

    Itâ(TM)s not clear why the workers didnâ(TM)t protest at Microsoft headquarters."

    - this is not the question, and really, the answer is in TFA:

    But Jeff Reifman, a technology consultant and writer who used to work for Microsoft, is pointing the finger at his former employer, saying that Microsoft has used a subsidiary in Nevada to avoid paying Washington taxes. Heâ(TM)s written numerous articles about this over the years, and now published a recent commentary on Crosscut.com linking Microsoftâ(TM)s tax policy with the stateâ(TM)s school funding shortfall

    There you go, that's why they are in Nevada.

    By the way, this is again compared to Burger King for all the wrong reasons:

    In response, Hunter said that he and many other legislators tried for years to figure out whether they could tax the money Microsoft sends to Nevada. He said the answer from the stateâ(TM)s lawyers was always, âoeNo.â And he said itâ(TM)s similar to the recent move by Burger King to buy a Canadian company as a way to lower its U.S. tax bill.

    âoeTo move that big chunk of revenue to Nevada â" itâ(TM)s legal,â Hunter said. âoeSo this is just like the Burger King thing. Itâ(TM)s frustrating, and youâ(TM)ve got lots of people in Congress who are frustrated about it, but itâ(TM)s legal.â

    Burger King is a BRAZILIAN COMPANY, not American. Hasn't been American since about 1989. 70% of its stock is held by a Brazilian conglomerate. Fucking Americans are idiots, crying about a Brazilian company merging with a Canadian one, but what else is new?

    However the point is that Microsoft is a victim of unconstitutional, illegal government system that usurped power and is stealing people's money. Income taxes are illegal and are collected illegally for a wide range of reasons.

    Of-course the reality is that so are these government monopolies on education and health insurance and care. There should be no government at all in any of it, education and health insurance and care are just as much subject to free market rules as any other products, including food and shelter and clothing and energy and none of is any of government's business and the fact that government is in all of these things is the reason that these socialist / fascist economies are dying and good, the sooner the better. The sooner these socialist/fascist states disappear the sooner people can rebuild their individual freedoms and real economies.

  4. Voliunteer workers for the IRS? by King_TJ · · Score: 4, Insightful

    I don't get this at all?

    If a business has avoided paying some taxes *legally* and citizens are angry about it? The proper channel to go through is protesting the government that allowed it.

    Any "for profit" business has the responsibility to maximize profits for the sake of its continued existence and growth, and as a duty to its stockholders if it was publicly held. Therefore, it would be irresponsible of it NOT to take advantage of legal tax loopholes or tactics to minimize costs.

    It sounds like some people have the idea that they can "shame" businesses into volunteering to pay more tax than they're legally required to pay. I'm not saying that might not have a small measure of success in some situations -- but you'd probably achieve similar results by just randomly picketing ANY profitable business and demanding they give more to charity, or pay more of their profits to improve the local area, or ??

    The crux of the problem here is the way the laws are written, so only your legislators can correct it.

  5. Re:Misleading Headline by Anonymous Coward · · Score: 5, Insightful

    People don't bootstrap their earning potential or marketable skills from nothing, nor could they continue to prosper without social cooperation made possible by tax-supported infrastructure and institutions. If you want to be a completely unencumbered individual, find a deserted island.

  6. Avoidance == Evasion in sheep's clothing. by sethstorm · · Score: 1, Insightful

    You can rationalize it all you want, but tax "avoidance" really is the same concept as tax evasion.

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
  7. Are protestors all lazy or just hired goons? by SuperKendall · · Score: 3, Insightful

    I suspect they protested at S. Lake Union because that is very close to downtown Seattle and an extremely visible location.

    You have that right on the money.

    This year at WWDC there were Apple tax protestors out front before the keynote with the classic protestor drum circle and some kind of chant.

    Well the moment the cameras outside are gone? So are they. I had some respect for them before that for at least making a stand, even if I disagree with the position. But they weren't making a stand - they were making a TV show.

    Given the behavior it's hard to believe they were not all actors of one form or another. It certainly didn't seem like anyone had the kind of protesting spirit that really meant anything when they couldn't be arsed to protest longer than a few hours. I have to wonder if the Microsoft protest is of the same spiritless form.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Are protestors all lazy or just hired goons? by Concerned+Onlooker · · Score: 3, Insightful

      "Well the moment the cameras outside are gone? So are they."

      Why waste your time parading to an empty street? Why shouldn't protestors play the PR game just as much corporations? It's all about getting your message out. Just ask the Koch brothers and their hired goons.

      --
      http://www.rootstrikers.org/
  8. Re:Misleading Headline by sumdumass · · Score: 2, Insightful

    Sigh.. It is only made possible by tax-supported infrastructure and institutions because the government injected itself. Before the governments injected themselves, it was sustained by private industry or the people themselves. Those costs were either passed on to the consumers of simple born by the people involved.

    You act as if no one could ever function without the government hand holding people through life. Some of the more prosperous years in our history were when the government was not in schools, limited themselves on the roads, did not deliver water and so on. And even to the schools issues, the feds were hands off it when we put man on the moon. It wasn't until years later that feds got involved and now not only do we have a department of education that cannot even do the math to account for their budget at times but we lack sufficient knowledge and resources to put a man on the moon again.

  9. Re:What empty street? by thegarbz · · Score: 4, Insightful

    So? Apple developers don't care, customers may care. Protesting is about two things, PR and disruption.

    Lots of disruption cases are illegal especially in a public setting so disruption is typically reserved for private cases but then how can you be disruptive if you don't have access to the private premises? Disruptive protests are normally done by employees internally but they aren't going to complain about the tax breaks their employer received.

    In cases like this the protest is exclusively a PR campaign to raise awareness. Disruption will likely end them in jail, fined, or worse still as in the cases of the Google Buses people may not sympathise due to a misdirected attack.

    What they did here was get their face on TV. It's about the best form of public protest you can have. Who cares about a few thousand developers when you have the evening news and media sites picking up the story? In some cases getting your face on TV is the end game and there really is no point it wasting your time beyond that.