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Microsoft Avoids Washington State Taxes, Gives Nevada Schoolkid A Surface Laptop (seattletimes.com)
theodp writes: The Official Microsoft Blog hopes a letter from a Nevada middle schooler advising Microsoft President Brad Smith to "keep up the good work running that company" will "inspire you like it did us." Penned as part of a math teacher's assignment to write letters to the businesses that they like, Microsoft says the letter prompted Smith to visit the Nevada school to meet 7th-grader Sky Yi in person as part of the company's effort to draw attention to the importance of math and encourage students and teachers who are passionate about STEM (science, technology, engineering and math) education. In an accompanying video of the surprise meeting, Smith presents Yi with a new Surface Laptop that comes with Windows 10 S, a version of the OS that has been streamlined with schools in mind. "Not bad for a little letter," the Microsoft exec says.
Speaking of Microsoft, Nevada, and education, Bing Maps coincidentally shows the school Smith visited is just a 43-minute drive from the software giant's Reno-based Americas Operations Center. According to the Seattle Times, routing sales through the Reno software-licensing office helps Microsoft minimize its tax bills (NV doesn't tax business income) to the detriment, some say, of Washington State public schools.
Microsoft's state and local taxes will drop to just $30 million for the last year (from an average of $214 milion over the previous 14 years) according to the Seattle Times. "A Microsoft spokesman said the decline in 2017 was caused by the company's deferring taxes on some income to future years and the winding down of the company's smartphone business."
Speaking of Microsoft, Nevada, and education, Bing Maps coincidentally shows the school Smith visited is just a 43-minute drive from the software giant's Reno-based Americas Operations Center. According to the Seattle Times, routing sales through the Reno software-licensing office helps Microsoft minimize its tax bills (NV doesn't tax business income) to the detriment, some say, of Washington State public schools.
Microsoft's state and local taxes will drop to just $30 million for the last year (from an average of $214 milion over the previous 14 years) according to the Seattle Times. "A Microsoft spokesman said the decline in 2017 was caused by the company's deferring taxes on some income to future years and the winding down of the company's smartphone business."
... for a personal income tax on everyone else in Washington State, so the rest of us can pick up the slack dropped by his former company.
Hey Tesla! Great work on pushing the electric car mandate forward like you have. Please continue to do awesome stuff.
((Crosses fingers))
The dangers of knowledge trigger emotional distress in human beings.
Useful clue: The President has no power to change State and Local Tax laws. Which, if you'll read TFS, is what this is about.
Note also the distinction between "avoidance" and "evasion". Hint: the first is legal, the second isn't. An example of tax avoidance might be you taking the Standard Deduction (or itemizing deductions, for that matter) on your Federal taxes - since NOT taking it would require you to pay more taxes, you are doing "tax avoidance" whenever you do so....
"I do not agree with what you say, but I will defend to the death your right to say it"
Hell, sounds like a great strategy... I'll pay all my taxes starting in 2100, you can even accrue penalties and interest if you like, just let me continue about my business unimpeded in the meantime. I promise, I'm good for the balloon payment.
Note also the distinction between "avoidance" and "evasion". Hint: the first is legal, the second isn't.
On our next episode, the difference between legality and morality.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Next you'll expect them to be good citizens...
Another way to avoid taxes is to do less, or no, business in that jurisdiction, which is what Microsoft is doing. For instance, I avoid Laotian and Sudanese taxes by doing business in California, and not Laos or Sudan. Is what wrong? If not, then how is it different from what Microsoft is doing?
There are plenty of good reasons to criticize Microsoft, but this is just stupid. Washington has no "right", either morally or legally, to collect sales tax on something that is neither made, nor sold, nor delivered in Washington.
...Windows 10 S is not "a version of the OS that has been streamlined with schools in mind", it's really "a version of the OS that is artificially restricted from installing 'normal' windows programs outside the windows app store, forcing misguided customers who didn't know any better to shell out an additional $100 after the fact to upgrade to a 'normal' version of windows that's half-way usable"
Windows 10S is Microsoft's attempt at becoming a walled garden gatekeeper like apple, skimming 30% of the top of any application purchase. They do NOT have your best interest at heart, not even in the slightest.
Because the ability to run software just slows down an ad platform.
Ahhh... yes... the immorality of taxing income.
Of course it's immoral to tax a portion of personal income, the portion needed to actually survive. Luckily, most tax systems recognize this, and don't tax people until they are above the poverty line.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Smith presents Yi with a new Surface Laptop
Microsoft Surface Laptops and Tablets Not Recommended by Consumer Reports
The four laptops losing their previous recommended status are the Microsoft Surface Laptop (128GB and 256GB versions) and Microsoft Surface Book (128GB and 512GB versions). Microsoft is relatively new to the hardware business, and this is the first year CR had enough data to estimate predicted reliability for the company’s laptops.
Microsoft’s estimated breakage rate for its laptops and tablets was higher than most other brands’. The differences were statistically significant, which is why Microsoft doesn’t meet CR’s standards for recommended products. The surveys are conducted annually.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
You don't benefit from anything provided by the governments of Laos and Sudan. Microsoft benefits from infrastructure, educational opportunities, etc.. provided to it and its employees.
That wasn't hard was it?
The real "Libtards" are the Libertarians!
Those employees also pay taxes, as does Microsoft, for the past several decades, benefitting the state of Washington.
Was that hard? Or are you just a fucking idiot.
The problem is the tax laws, not the companies taking advantage of them. Do you claim every and all deduction you can? Guess what, companies do the same. Do you pay an accountant $300 to convert your $2400 tax bill to $1200? Guess what, this is what companies do on a much larger scale.
The solution is streamlining the tax laws to make it clear who pays and who doesn't.
My solution? Members of congress, the president, and congressional staffers are not allowed to use any outside tax service to figure out their taxes. No Turbotax, no tax accountants. These assholes get to do their taxes, by hand, on paper. That will simplify the tax code overnight in under a year.
Don't even get me started on Wisconsin and Foxconn. That right there is some truly retarded bullshit.
"...Gives Nevada Schoolkid A Surface Laptop"
Who the fuck cares except the MS shill who posted this?
"Hang onto that laptop kid. That's the very one that Bill Belichik threw in the garbage during an NFL game. Should be worth a tidy sum one day."
good job brad
Microsoft benefits from infrastructure, educational opportunities, etc.. provided to it and its employees.
Microsoft pays payroll taxes on those employees, and the employees pay sales taxes when they spend their salaries. If that isn't enough, then Washington should raise those taxes. It is absurd to expect Microsoft's customers, who mostly live elsewhere, to pay sales taxes to Washington for sales that did not occur there.
Reminds me of the beater I used to drive.
(Oblig. bad car analogy)
Have gnu, will travel.
How about this, charge corporate tax at the point of use instead of the point of production, which can be moved nearly anywhere. This is, essentially, what VAT is. A lot of people don't like it but it's really the only way to prevent these kinds of shenanigans. Get rid of corporate and personal income tax, do a reverse income tax for the poor, and slap a VAT on everything sold. It would be a pain to set up, but once done it would be *far* easier to maintain than the convoluted mess we have now.
My Other Computer Is A Data General Nova III.
The problem with the recommendation based only on breakage is that it ignores a very streamlined system for replacing broken items.
Who pays for e-waste disposal? I mean the whole cost.
Washington charges a gasoline tax to pay for its roads, and property taxes to pay for schools. We can see through your tax deceptions: no tax is ever enough. Paraphrasing from Margaret Thatcher, "The problem with socialism is that eventually you run out of other people's money". You think you're clever and have found a solution by taxing from an ever-widening tax base (kind of like how a pyramid scheme works!). If the local taxpayers are insufficient to pay for your big government boondoggle, then you'll attempt to tax people nationwide. But leftists get mad when business flees the state, and paying customers are prioritized over the interests of government. This is the power of tax competition.
> new Surface Laptop that comes with Windows 10 S
He should have kept the piece of paper, at least it doesn't require that you buy a pen from Microsoft to write on it.
Tax individuals who make up the company. People choose to live in a place for many reasons besides taxes, so mass evasion is less likely. See how many choose to in CA? If you use money wisely and create a nice place to live, that's more important than take home pay to many.
For companies it's just business. They shift operations in whichever way is optimum for shareholders. But the process is wasteful and hurts economy / employment in general and in US in particular.
Why would Microsoft do that to the poor kid?
I bet you think you are smart for (incorrectly) quoting that, but context is important. When she said something like that, she was not yet Prime Minster and the top marginal tax rate in the UK was 98% (on investment income). So it's not remotely comparable to the situation today.
Washington schools are not funded by property taxes. Schools are funded at the state level. Property taxes provide some funding, indirectly to schools. So that's another thing you got wrong.
What is going on is that another state is acting as a parasite. Offering a loophole to a large company such that it can reduce its overall tax burden.
Schools have to be built, teachers paid, roads built, etc.. In particular, Washington State has many highway bridges that are in desperate need of repair. Yet people like you seem to think that all of this is possible, irrespective of how low tax rates are. Go and look at how that worked out in Kansas.
The real "Libtards" are the Libertarians!