Slashdot Mirror


Microsoft Offers Washington a Bargain: More State Taxes, For More Education

reifman writes: The Washington State Legislature and its budget is a complete mess this year but there's been an unusual bright spot which may quiet the protesters Slashdot reported earlier: Microsoft has volunteered for an exclusive $28 million annual tax — as long as the state funds a number of computer science degree programs. Visions of these faded after the 2008 recession when the legislature cut $4 billion from K-12 and higher education spending in part to cover the coming legalization and amnesty for Microsoft's Nevada tax dodge (students' tuitions only increased 58.6 percent.) With Microsoft's voluntary tax, the company will have fully repaid its $8.75 billion tax dodge by 2327, just 312 years from now.

13 of 161 comments (clear)

  1. Very similar strategy to Cisco by Ravaldy · · Score: 4, Informative

    Cisco for a long time inserted itself in schools by providing major discounts. They figured that if you train people to use and love Cisco, they will grow up buying Cisco. It's the common case of buy what you know. I did it, you did it and well all do it again.

    1. Re:Very similar strategy to Cisco by Penguinisto · · Score: 4, Insightful

      The only thing I worry about in this case is if Microsoft goes one step further and ties a "use Microsoft products exclusively in the schools or no deal" string to that money/tax bump.

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    2. Re:Very similar strategy to Cisco by SvnLyrBrto · · Score: 4, Insightful

      Apple does it too. IBM used to do so (when they still made PCs & AIX workstations). Juniper does it at the community-college level. And, back in the day, you used to see a LOT of Sparc/Solaris machines in academic settings where they were definitely overkill.

      Nothing sinister here.

      --
      Imagine all the people...
    3. Re: Very similar strategy to Cisco by Penguinisto · · Score: 5, Informative

      Like Germany, where they spent $14 million to save $11 million?

      Guessing they'll save a lot more than that in the long run - mostly by not having to re-up a massive Microsoft EA multi-million-euro contract every 3 years or so...

      In other words, you've fallen for the same short-sighted 'next quarter' BS that the MBAs tend to fall for. Look further out...

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
  2. Socialize the costs, privatize the profits by Anonymous Coward · · Score: 5, Insightful

    Microsoft has cleverly figured out that it can spend $28 million to A) increase competition in the CS grad job market, thus driving down the cost of employees, and B) offload the costs they would incur training hires over to the state. How clever.

  3. I wil pay my fair share by fermion · · Score: 3, Funny

    If the personal belief exemption for vaccines is outlawed. Otherwise I will throw a temper tantrum and use the equivalent of the taxes I should owe to hire lawyers to litigate until I turn blue in the face and the state gives up

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    1. Re:I wil pay my fair share by rahvin112 · · Score: 4, Informative

      The only problem with your plan is that failure to pay taxes is criminal not civil. For all your strong words, when you are looking at a decade in jail you will settle just like everyone else does.

      And if you are famous or will get newspaper articles written about your prediciment you will still go to jail, just ask Wesley Snipes. He followed the advice of one of those tax crackpots and he went to jail for 3 years, even after buckling under to the government and paying back everything he owed plus the interest and penalties. The guy that convinced him to do it? 17 Years in jail. The IRS has their own courts and you are guilty in those courts unless you can prove otherwise.

      Messing with the IRS is very foolish.

  4. Compartmentalize the budget by Karmashock · · Score: 3, Insightful

    The thing I find the most annoying about budgets especially at the local level is that when money gets tight they'll always raise money for "schools" or "police" or something when really the cost over runs are because of something completely different.

    And instead of cutting spending where it got out of control... they instead jack up taxes for "the children"... and then divert all that money to some other project.

    I've even seen tax bills written such that that was specifically supposed to happen... and they looted the fund anyway in contravention of the law... and who is going to prosecute? Not the AG.

    I think we might need a fourth branch of government that does nothing but hold the other three accountable.

    Anyone ever read Herbert's the "Whipping Star" or its sequel? It has this concept in it... he called it "the Bureau of Sabotage"... they did nothing but fuck up the other branches so they couldn't pull any tricky slights of hand, fuck over the democratic system, break the law, etc... the bureau slowed the other branches down... so that they couldn't subvert due process.

    Something like that at every level might fix a lot of our problems.

    People would point out that that would be expensive... I would would ask... more expensive than rampant corruption and subverted law?

    --
    I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
  5. The job of the press is accountability by sjbe · · Score: 5, Interesting

    I think we might need a fourth branch of government that does nothing but hold the other three accountable.

    We have that - it's called the press. Combined with an informed electorate it's pretty effective in the long run. It's not official in the government but you really don't want it to be. An official branch of government that isn't accountable itself is called a dictatorship. I'm pretty sure you wouldn't like that.

  6. Re:It's not a dodge. by OhPlz · · Score: 3, Interesting

    This comes up in Massachusetts every so often. They have the normal rate for income tax but they also have an optional higher rate if people want to contribute more to the state government. So what happens? When people start calling out for people to pay more to support the schools or other issue of the day, the media starts pulling tax records and pointing out that those same people did not elect to pay more themselves.

    Or even more hypocritical, someone took a picture of a state legislator license plate from Massachusetts at a New Hampshire liquor store. The legislator had just voted to up the tax on alcohol in MA and was evading it by buying in NH. So it's okay for others to pay more, but it's not okay for the people complaining the most to voluntarily pay on their own.

  7. Re:It's not a dodge. by im_thatoneguy · · Score: 5, Insightful

    it's, at best, a strawman (non-)argument to call them a tax dodge or to claim they owe your hypothetical billions. Tax evasion and tax avoidance are two entirely different things.

    They said Tax Dodge. You even posted Tax Dodge, then you transformed it into "Tax Evasion" which nobody else said and burned the strawman that you built. That's a nice slight of hand you tried to pull there. Nowhere is the word "Evasion" aka an illegal tax dodge used in the article or the summary or the headline.

    However, I disagree with the principle of what you said, even if they had said "Tax Evasion". Considering the amount of lobbying and corruption that multi billion dollar a month corporations wield over governments, it's perfectly fair to say that even if you legally evade taxes, it's still tax evasion when you are the de-facto rule writer for yourself. Following the letter of the law while violating the spirit of the law means we can still judge the company as an asshole even if they are following what's written in ink.

  8. It most certainly is a tax dodge. by sjbe · · Score: 5, Interesting

    But it's, at best, a strawman (non-)argument to call them a tax dodge or to claim they owe your hypothetical billions.

    If they took extraordinary action to avoid paying taxes while still staying within the letter of the law then they ARE dodging taxes. Any argument otherwise is merely equivocation.

    Tax evasion and tax avoidance are two entirely different things.

    Just because something is legal doesn't make it right. And I don't buy your argument because it is basically a "might makes right" argument. Just because they have the ability to hire lots of lawyers and accountants to do clever tricks avoiding taxes does not mean it should be acceptable. Finding clever loopholes that force others to make up the slack in civil society is not something to be applauded.

    But if you're going to attack someone else for not paying more tax than they are legally obligated to

    I'm not. I'm attacking them for paying less than they are ethically obligated to. I don't care for a moment that they aren't technically breaking the law. The fact that the laws were imperfectly written does not excuse their behavior. I assure you that I am paying a FAR larger portion of my income in taxes than Microsoft is AND even if we paid the same percentage Microsoft would feel less financial pain from doing so. So until Microsoft starts paying an amount of tax that hurts them as much as what I pay hurts me your argument is bogus.

    1. Re:It most certainly is a tax dodge. by magarity · · Score: 4, Informative

      I assure you that I am paying a FAR larger portion of my income in taxes than Microsoft

      Yes, you are paying a far larger portion than ANY company. But do you know why? Because no company has ever paid a penny of "their own" income in taxes. Their taxes are baked into their prices. You pay their taxes for them. Estimated taxes are part of the structure determining price: 1: Cost of materials 2: Cost of labor 3: Cost of capital 4: Cost of taxes 5: Cost of profit (the company's own income) 6: Cost of selling 7 - N: etc.
      Saying companies ought to pay more in income tax is the same as saying you wished they charged more for their products and services. Income taxes at all levels are really just paid by the last level that can't pass it on to a customer downstream.