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Microsoft Pushes For Public Education Funding While Avoiding State Taxes
theodp writes: After stressing how important the funding of Washington State education — particularly CS Ed — is to Microsoft, company general counsel Brad Smith encountered one of those awkward interview moments (audio at 28:25). GeekWire Radio: "So, would you ever consider ending that practice [ducking WA taxes by routing software licensing royalties through Nevada-based Microsoft Licensing, GP] in Nevada [to help improve WA education]?" Smith: "I think there are better ways for us to address the state's needs than that kind of step." Back in 2010, Smith, Steve Ballmer, and Microsoft Corporation joined forces to defeat Proposition I-1098, apparently deciding there were better ways to address the state's needs than a progressive income tax.
Additionally, the Slashdot story is disingenuous (shocking!) when it brings up Microsoft's opposition to Washington proposition I-1098 a couple years back. Yes, Ballmer was a big contributor against the initiative but it was widely unpopular across the entire state, failing at the polls by a 2-to-1 margin.
Quick recap on what that was for non-Washington residents: WA is one of seven US states with no personal income tax. Sales taxes vary by locality, but in general they are higher than average in WA in order to make up for the lack of a sales tax (in Seattle, for example, sales tax is nearly 10%).
I-1098 proposed that individuals making more than $200K/year or families making $400K/year pay a state income tax, with a higher rate applying to those above $500K/$1M. Given WA's economically skewed demographics, the tax would hit many in the greater Seattle area (around the top 3% including Microsoft, Boeing, Amazon, Google, Nintendo etc. employees), while outside Seattle it would be more like the top .01%.
Interestingly, Bill Gates was a visible I-1098 supporter, while Steve Ballmer was a major opponent. But keep in mind the above: the demographics of Washington State are such that had this been an issue of just Microsoft and other big corps fighting it, or "rich Seattle" against the rest of the state which is not so full of rich techies, it would have won handily. Instead, it lost by a 64-36 ratio because voters across the entire state, including a majority of Democrats, thought it was a backdoor way to introduce a state income tax whose threshold would conveniently be lowered by the state legislature whenever it found itself in a money crunch.
So long story short - it may very well be true that Microsoft is dodging state taxes that it should be paying. If so, it should definitely be held to account. However, the fact that Ballmer or Microsoft supported a widely popular anti-state income tax initiative is not related to whether the company is shirking its tax duties.
"95% of all Slashdot
I'm happy as the next guy to pillory Halliburton, which deserves little but scorn for its shocking profiteering in US government contracts. But you probably don't want want to cite dated Chavezista leftie Froot-Loops talking about how the rapidly disintegrating former Venezuelan economy is a model for anything except citizen outrage.
Just ask the folks living in the former Socialist Paradise where condoms now cost $755/pack on the black market because the Bolivar is worth less than toilet paper and it turned out that Chavez was mortgaging his country's future to buy temporary popularity with oil dollars.
"95% of all Slashdot
Google pushesf for Public Education Funding While Avoiding Taxes
Apple pushes for Public Education Funding While Avoiding Taxes
Goldman Sachs pushes For Public Education Funding While Avoiding Taxes
ExxonMobil pushes For Public Education Funding While Avoiding Taxes
Koch Brothers pushes For Public Education Funding While Avoiding Taxes.
etc...
I'm all for capitalism but American capitalism was never about Rand's definition. It was about working hard and smart and being rewarded appropriately for your effort. It was OK to be rich as long as you earned it. What's currently going on though is a return to aristocracy rather than meritocracy.
People that richly benefited from our mixed economy are now going on to screw the rest of us because they are in a decision making role. Back in the 50s major CEOs made 50 times what an employee made. Today they are making 500 times. We even have companies like Warlmart that shamelessly depend on food stamps to subside their employees wages. At some point there is going to be major blow back if major corporation continue hoarding all the wealth by evading taxes and paying their employees crap. (as happened to Greece where their own government and elite screwed over their own countrymen)
The pacific northwest is beholdent to a few large companies that use their importance to exert some scary influence on the politics. When these issues come up Microsoft has threatened to move overseas, or to other states. The voters and state/local government falls in line. Same with Boeing, which has moved a lot out of Washington even after getting just about special treatment they could ask for.
Down here in Orygun, Intel and Nike do the same thing. Nike's headquarters is surrounded by Beaverton, but is not part of it because they they have made huge threats to leave if the city tries to annex it into the city, which would result in higher property taxes to help pay for the city services they already benefit from. Intel got a very sweet package during their recent expansion. It is a massive race to the bottom to get and keep these big employers. It is sickening. The rest of us in the area get to pay higher taxes to make up the shortfall, and we have the threat hanging over us that they can crash the local economy and housing prices with it if they make good on their threats.
You mean because they eventually were superseded by the railways system enabled by government-run eminent domain and land grant schemes, followed by the government-planned and funded Interstate highway system and then the advanced civil aviation system that itself could never have existed without extensive subsidization and support by the federal and state governments? You know, after the canals fostered American commerce and growth for well over a century?
Yeah, the government does nothing but waste taxpayer money.
You mean the canals that today sit unused?
Please increase my tax rate and properly fund our schools.
We have a political Q&A TV show here, and one time a politician was on there promoting his low tax policies because "no-one wants higher taxes" There was a collective groan from the studio audience and one guy responded, "I'll happily pay more tax if it means better services". This was followed by another, and another which drew applause. The general consensus is the "low tax" promise is purely a political gimmick. If you want quality health education and infrastructure services that most people want, then you have to pay for it, and you pay for it through taxes.
I paid over $70k in tax last year and will happily support higher tax rates dedicated to improving health, education and transport (not defence - $1Trillion on a illegal war? WTF? Those responsible for that should be hung for treason)