How Microsoft's Tax Dodge Led to $4 billion K-12 and Higher Education Cuts

Jeff Reifman on the Microsoft Tax Dodge

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.

Seattle City Initiative Seeks to Make Net Neutrality Law

I am lead organizer behind Seattle Initiative Measure 103 http://www.i103.org which will end corporate personhood in Seattle and elevate the rights of residents above corporate rights. 

Three things you can do right now:

1) Join the Measure 103 Facebook page or sign up for our mailing list.

2) Collect petition signatures from your friends and family

3) RSVP for our Kickoff Party March 29th in the University District

What Measure 103 will do in Seattle:

• End corporate personhood and limit corporate rights
• Ban corporate spending on elections
• Ban corporate lobbying except in public forums
• Close the revolving door of employment  between elected officials and large corporations
• Provide citizen oversight of the Seattle Police Department
• Provide constitutional rights for workers
• Provide neighborhoods the right to approve major zoning changes
• Provide rights for nature
• Provide equal access to a free and open Internet, known as network neutrality

Our efforts in Seattle are part of an emerging statewide and national movement to place peoples' rights above corporate rights. 

Learn more about Measure 103

Comcast Policy Change Increasing Rates for Seattle Customers

My open letter to the Seattle City Council about Comcast's 50% price hikes on broadband Internet access:

Dear Councilmembers,

In the fall of 2010, I wrote of my concerns with Comcast's billing policies in TechFlash. At the time, I expressed frustration that in order to get the market rate with Comcast, I had to call every six months, threaten to cancel and only then would they offer the market price for broadband.

This week, I learned that Comcast has discontinued its $42 rate for 15 mbps broadband. They now insist on charging me $62.95 for this same level of service. They tell me that I can receive a much lower performance of 3 mbps at the old $42 rate if I wish. Or, they tell me that I can bundle services such as cable television to receive the best pricing.

Comcast is a monopoly cable technology broadband provider to my home ... so it's quite frustrating to have to call the company every six months for the market rate and now to have a 50% price increase in what I've been paying for many years.

Qwest/CenturyLink can only provide 7 mbps DSL to my home. I plan to sign up with them and terminate my Comcast account. However, the 7mbps performance does not allow for the same level of performance that cable provides e.g. higher quality streaming video, uploading large files, etc.

I know that there are a myriad of federal regulations governing what the council can do to control rates and private companies such as Comcast and Qwest. However, I do believe the council has failed Seattle customers in not flexing its muscle more aggressively in our long term agreements that grant these companies rights of way to our neighborhoods and homes. And, now, I and many other Seattleites are forced to pay more or get less.

I thought it would be useful to give you an update on one Seattle resident's experience - which I expect is about to become more commonplace for other customers.

I hope that you will reconsider more aggressively regulating these companies. Affordable broadband internet access is a keystone of Seattle's future.

Sincerely,

Jeff Reifman

When it comes to education in Washington State, Microsoft is the problem...

Here's my penultimate summary of how Governor Gregoire, the legislature, the courts and The Seattle Times have enabled Microsoft's hypocritical stance on education and tax dodging to damage our budget and our educational system ... new updates including audio clip of Microsoft's Brad Smith acknowledging the Nevada tax dodge:

Full story at Microsoft Tax Dodge

Microsoft Told to Put Up or Shut Up on Nevada Tax Dodge Issue

Beginning with the publication of Citizen Microsoft in Seattle Weekly in 2004, I've reported that Microsoft used its Nevada office to avoid payment of the state's Royalty Tax from 1998 - 2010. I've blogged that the amount of the tax dodge has likely exceeded $1.07 billion (not including penalties). 

Last week, after John Burbank, Executive Director of the Economic Opportunity Institute, wrote an editorial condemning the company's hypocritical record of tax dodging while advocating for more education funding, Jeffrey Reading, Microsoft's Senior PR Manager wrote The Herald to refute the claims Burbank made (Burbank based his article on my reporting):

"Mr. Burbank does not include sourcing to support his claims regarding Microsoft’s Nevada licensing, which is part of a very complicated piece of state tax law. Much of the information regarding this issue is misinformation primarily spread by a blogger, and no state official has ever provided any factual data supporting his claims."

I stand behind my research and all of my claims. If Microsoft wishes to prove that it paid Washington State Royalty Taxes during the years 1998 - 2010, it should disclose its worldwide licensing revenue and its Royalty Tax payments for this time period. It would be quite simple for the company to provide these two sets of numbers and would put the issue to rest once and for all (as I have done here). 

Read: To Refute Claims, Microsoft Should Disclose Its Royalty Tax Payments

John Burbank Tells Legislature to Target Microsoft

In his Everett Herald column today, John Burbank, Executive Director of the Economic Opportunity Institute, zeroes in on Microsoft's tax dodge and its harmful effects on the state's educational system. Read more

Now for what really matters...

I've posted some personal thoughts on today's national elections up at Tales of Change: Now for what really matters... It's reflective in part of watching Microsoft get its way in Washington State in this last legislative session. Hope you'll take a look.

iPad Byline for Google Reader Not in the Near Pipeline

Unfortunately, it doesn't sound like ByLine will have an iPad application up very soon. Their support contact answered very quickly but the news isn't encouraging:

"We will be working on a version of the app for iPad, however we are currently working on the final touches of Byline 3.0 and will commence work after it's release.

Absolutely understandable. Unfortunately I have no ETA. Sorry I dislike giving such vague responses, however we have not looked at the iPad specifically re: software development as yet, given our focus is on the release of Byline 3.0. It is therefore difficult to give an ETA as we are not certain at this stage just how much work (and time) will be involved in developing an adapted version of Byline for iPad."

Based on this, I'm considering NetNewswire although early reports say that application is quite buggy as well. 

You can use Byline in iPhone mode.

See my earlier roundup: iPad News Reader Applications with Google Reader Support

Cyber-Security Czar Howard A. Schmidt Needs Help with His Website

 Apparently the corporate website for Howard A. Schmidt, the new Cyber Security Czar, remains under construction (via Seattle Weekly) . While the Washington Post reports "Schmidt's resume reflects experience in the private sector, law enforcement and government," his website would not get him in the door for an interview in most private sector IT firms. 

The site is powered by 1&1's Website Builder but unfinished. While many of us own domains that we don't run completed sites on, this appears to be the home page for his R&H Security Consulting LLC. He was previously hired by the Bush Administration as an advisor on cyber security issues.

Judgement day for Microsoft: Amanda Congdon Reports on Microsoft's Tax Dodge

For more information, please visit the Microsoft Tax Dodge website:

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