EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

02.04.08

The Game of Economics

Posted in Bill Gates, Finance, Microsoft at 7:58 pm by Dr. Roy Schestowitz

Lesser-known facts at times of recession

The following article has just been cited by Slashdot. It addresses an important issue which we raised in the past. Microsoft’s habits when it comes to taxation (never mind the kickbacks) are quite irregular, but this tends to go unnoticed or unheard of. Here is the opening paragraph from the new article.

When I heard that Microsoft Chairman Bill Gates had invoked the phrase “creative capitalism” at last month’s World Economic Forum in Davos, Switzerland, it reminded me how Microsoft avoids paying taxes on Washington-made software by selling it through Nevada. Since 1997, I estimate, the company has avoided paying more than $528 million in state taxes while racking up $92 billion in profit and distributing more than $42 billion in dividends to shareholders. Microsoft’s creative capitalism has deprived Washington state a lot of tax revenue it needs to pay for critical infrastructure such as replacing the aging 520 bridge that many of its employees use to get to and from corporate headquarters in Redmond.

We recently wrote quite a lot about the Gates Foundation [1, 2, 3, 4, 5, 6] and at times also alluded to its aspect which involves tax evasion.

Additionally, Microsoft’s apparent bluffing when it comes to its financial results [1, 2] received a great deal of attention. To avoid repeating old references, the reader is urged to read those previous posts. Another fine addition to the list of previous citations is this one from yesterday:

Microsoft and the American way

An interesting side-note on the potential Yahoo-Microsoft deal: Microsoft has only $17B in cash/liquid reserves, but has bid $44.6B for Yahoo.

A lot of money appears to have vanished. According to one source, Microsoft reserves used to top $60 billion. It appears as though someone continues to hide the full story from us, or simply moves money between different buckets in order to please shareholders and analysts. Again, you are encouraged to read the previous external references which make a compelling case. This is merely an update.

Related (older) article:

Microsoft’s man in Europe carries communist-era baggage

That report sparked a flurry of speculation in Czech media and online chat rooms about Muehlfeit’s role under the communist regime, and it elicited a public statement at the time from Microsoft, which supported Muehlfeit’s integrity.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

2 Comments

  1. Jose_X said,

    February 20, 2008 at 12:19 am

    Gravatar

    I don’t follow MS financials, but they did commit to paying out huge dividends (a one time shot plus another chunk spread over time). Also, I imagine they buy companies or “assets” or whatever. In this way they trade cash for something else of value. Sure there is room here for manipulation, but as I said, I haven’t followed closely and I am not an accountant.

    Has Bill Parish written anything recently on Microsoft that might shed light?

    Oh, and yes, the Foundation should get turned over by the feds at some point I hope; however, Microsoft/Gates are the supreme leaders of our time in taking advantage of “interpretations” and loopholes. Here’s hoping they go too far so that they see some justice. It might be good for their souls.

    Of course, the best way to get caught is to make enemies. If only they would really screw over their major investors.

  2. Roy Schestowitz said,

    February 20, 2008 at 12:26 am

    Gravatar

    Hi Jose,

    For the latest from Parish (very little) and some more details, start here. You’ll need to follow the links from there because we hardly ever repeat references and evidence (we link to this instead). I’ve been watching Microsoft’s financial news very closely for almost 2 years. I was not surprised to find out that Yahoo would have them in debt. They hypnotise people using paid analysts and press which they influence heavily (or practically own).

What Else is New


  1. White House Intervention Harms Android and Every Software Developer on the Planet

    US Solicitor General Donald Verrilli urges the Supreme Court (SCOTUS) to let APIs be covered by copyrights, rendering almost every program a potential copyright violation



  2. Microsoft Lobbying in India Shoots Down or At Least Weakens Free/Libre Software Policy

    Microsoft's covert efforts (lobbying with the help of public partners like NASSCOM) to eliminate an India-leaning software policy in India is finally paying off



  3. Propaganda Mode for UPC Agreement Whilst EPO Increasingly Grants Patents on Software

    In order to make the Unitary Patent a reality (towards a 'no place to hide' patent approach) misleading claims are being made



  4. Patents Are Not Source Code

    Ford is once again misleading regarding Open Source, mischievously associating a patent pledge with Open Source



  5. Links 29/5/2015: ALT Linux 7.0.5, Google I/O 2015

    Links for the day



  6. Links 28/5/2015: SourceForge Hijack, RIP Marco Pesenti Gritti

    Links for the day



  7. Censorship on Reddit Has Gotten (Condé) Nasty and Silent, Even Actively Silenced

    Condé Nast has turned Reddit into a platform of censorship after the acquisition



  8. The Supreme Court of the United States Helps Patent Trolls

    In an unforeseen kind of ruling, the same court which slapped down a lot of software patents last year is now legitimising the actions of a patent troll



  9. Patent Lawyers Fight Hard for the Future of Software Patents

    Media that is dominated by patent lawyers and targets an audience of patent lawyers refuses to accept the post-Alice reality



  10. Fortune Glorifies Patent Troll Jay Walker (Patent Utility)

    Jay Walker, a patent troll, creates a Web-based trolling/'licensing' service and the corporate media helps him



  11. Stealing Android's Thunder, Making It All About Apple and Microsoft During Google I/O

    Misleading articles and conjoined media/analyst attacks on Android coincide with Google's event where major Android announcements are being made



  12. British Government May be a Step Closer to GNU/Linux (on the Desktops, Not Just Servers)

    The British government stops paying the criminal company that blackmails its members, thereby increasing the possibility of complete escape from proprietary software



  13. Microsoft's Patent Allies LG and Sony Agree to Put Microsoft Inside Android

    LG and Sony (of Rockstar Consortium) follow Samsung and Dell in Microsoft's campaign to turn Android into 'Microsoft Android' using patents-induced pressure/leverage



  14. Yet Another Major Security Deficiency in UEFI

    UEFI is inherently insecure, more so than the alternatives which it strives to replace, including Free/libre ones



  15. Links 27/5/2015: Fedora 22 is Out, Mandriva Liquidated

    Links for the day



  16. Patent Scope at the EPO is Totally Out of Control, UPC Will Make Things Worse

    A look at the practical issues with the EPO, where patent scope and litigation scope have been vastly extended so as to benefit multinational corporations and possibly patent trolls



  17. Links 26/5/2015: Reviews of Kubuntu 15.04, Linux 4.1 RC5

    Links for the day



  18. Süddeutsche Zeitung Says Talking Helps While EPO Management Back-stabs Other Side of the Table

    German media gives the impression that there is peace and harmony now that Benoît Battistelli and his circle of power speaks to staff, but nothing is said about simultaneous (albeit covert) attacks against that staff



  19. Large Corporations Call the Shots in US Patent Reform

    A reminder of where we stand on the issue of patent 'reform' in the US and who is controlling or shaping it



  20. Microsoft Puts Proprietary Windows and Hyper-V Inside the Free Software-Centric OpenStack

    OpenStack, which celebrates rapid growth in this month's event in Canada, is facing a proprietarisation threat from Microsoft



  21. Microsoft's Secret Lobbying, Bullying, and the Long History of Blackmailing Politicians Around the World

    British media covers Microsoft's abuse in the UK, but there are many similar incidents, and not just in the UK



  22. Frankfurter Allgemeine Zeitung on Benoît Battistelli and Four EPO Suicides

    German press article from April 2015 (with translations)



  23. Links 24/5/2015: CrossOver 14.1.3, NTFS-3G Vulnerability

    Links for the day



  24. Links 23/5/2015: Fedora 22 to May 26th, Netflix in SteamOS

    Links for the day



  25. The Patents Production 'Industry' (Patent Lawyers) Still Fights Hard to Salvage Software Patents

    A review of recent writings about software patents and patents on business methods in the United States, demonstrating that patent lawyers have gotten very vocal and sneaky (trying to evade the rules)



  26. Patents as a Marketing Strategy: USPTO Now Part of the Advertising Industry

    The existence of publicity patents, or patents whose sole purpose is to advertise some products, serves to discredit the US patent office, which was originally set up to promote science and technology



  27. Microsoft Blackmails and Extorts British Politicians Over Open Standards and Free Software-Leaning Policies

    Microsoft's digital imperialism in the UK getting defended using blackmail, reminding a lot of Brits that Microsoft is just as evil as ever before



  28. Microsoft Gives Another Bug a Name, This Time Logjam™

    The Microsoft crowd is good only at marketing, even when it comes to small bugs in software



  29. Links 22/5/2015: Fedora 22 Final Release is Near, Canonical IPO Considered

    Links for the day



  30. More Utter Shame Unveiled at Battistelli's EPO: Intimidation Tactics With Help From 'Control Risks'

    The unaccountable thugs who run the EPO have hired London-based spooks to help silence their opposition and their critics


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts