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. Links 2/9/2014: GNU/Linux in BBC, Calls Against systemd

    Links for the day



  2. Links 1/9/2014: Poettering on systemd, ITNews on DBMSs

    Links for the day



  3. Moving Away From Windows to GNU/Linux and the Abandonment of Windows as the Modest Proposal These Days

    Morale of GNU/Linux and an embrace of GNU/Linux is very high, despite recent propaganda from Microsoft MVPs and boosters (primarily security-themed and Munich-themed FUD)



  4. Korean Press Slams Microsoft Over Patent Extortion Against Linux/Android as New Abuses Resurface

    Harsh words from the national press of South Korea as Nokia's role in Microsoft's anti-Linux tactics becomes more apparent



  5. More Good News About Patents and Their Demise in the United States

    A roundup of news about software patents and patent trolls in the land where these thrive



  6. Links 31/8/2014: Linux 3.12.27, Akademy 2014

    Links for the day



  7. Links 30/8/2014: Jailhouse 0.1, *buntu 14.10 Beta

    Links for the day



  8. Links 28/8/2014: Many New Games, CTO of Red Hat Steps Down

    Links for the day



  9. We Are Gradually Winning the Battle Against Software Patents

    The once-elusive war on software patents is finally leading to some breakthrough and even the Federal Circuit reinforces the trend of software patents' demise



  10. Free/Open Source Software (FOSS) Companies Versus FOSS Moles (VMware, Sonatype, Xamarin)

    A look at three entities which pretend to be pro-FOSS but are actually FOSS-hostile and very much determined to replace FOSS with proprietary software



  11. Links 27/8/2014: GNU/Linux in Space, China, LinuxCon

    Links for the day



  12. FUD Against Google and FOSS Security Amid Microsoft Windows Security Blunders

    In the age of widespread fraud due to Microsoft Windows with its back doors there is an attempt to shift focus to already-fixed flaws/deficiencies in competitors of Microsoft



  13. Microsoft Spin Watch: IDG Turns to More Microsoft Propaganda, Hires Microsoft Boosters

    Media in Microsoft's pocket is telling Microsoft's lies and deceives the public for Microsoft's bottom line



  14. Microsoft's Massive Tax Evasion Becomes Better Known

    A new report about Microsoft's admission that it plays dirty tricks with tax (sometimes using moles in government) is increasing awareness of Microsoft's criminal aspects



  15. Links 25/8/2014: China's Linux Revolution Imminent

    Links for the day



  16. Links 24/8/2014: GNU/Linux Specialisation and Benchmarks

    Links for the day



  17. Links 23/8/2014: GNU/Linux Growth

    Links for the day



  18. Microsoft-Funded Attacks on Android Security and Patent/Copyright

    A look back at examples of people who smear Android and are receiving (or received) money from Microsoft



  19. Blowback in Chile and Munich After Microsoft Intervention

    Microsoft's attacks on the digital sovereignty of countries involves lobbying, corruption, an attack on standards (e.g. ODF), an attack on FOSS policies, and even an attack on accurate reporting (truth itself)



  20. The End of Microsoft is Nigh

    A look back at a tough year for Microsoft and a not-so-promising future



  21. Links 22/8/2014: Linux Foundation LFCS, LFCE

    Links for the day



  22. UPS Burned by Microsoft Windows, Gives Away Massive Number of Credit Card Details

    UPS is the latest victim of Microsoft's shoddy back door with software on top of it (Windows); attempts to blame FOSS for data compromise actually divert attention from the real culprit, which is proprietary software



  23. Microsoft's Funding of ALEC and Other Systemic Corruption

    Microsoft role in writing of laws by proxy, via groups such as ALEC



  24. Microsoft is Still Preying on British Taxpayers, Playing Politics

    Some news from the UK showing how Microsoft uses politics to extract money out of taxpayers, irrespective of their preferences



  25. Microsoft's Patent Troll Intellectual Ventures is Collapsing as 20% of Staff Laid Off

    More good news regarding the demise of patents as Microsoft's leading patent proxy is collapsing more rapidly than anyone ever imagined and software patents too are collectively doubted



  26. Links 21/8/2014: Conferences of Linux Foundation, Elephone Emerges

    Links for the day



  27. Links 20/8/2014: Linux Event, GNOME Milestone

    Links for the day



  28. Corruption Watch: Microsoft Lobbying Designed to Kill Chile's Free Software Policy and Promote Microsoft With Subsidies, More Dirty Tricks Emerge in Munich

    icrosoft is systematically attacking migrations to GNU, Linux and Free software, using dirty tricks, as always



  29. Vista 8 Such a Disaster That Even Microsoft Cannot Cope With It, Vapourware Tactics Start Early

    Microsoft's Windows-powered services are failing and Windows gets bricked by Microsoft patches, whereupon we are seeing yet more of Microsoft's vapourware tactics (focusing in imaginary, non-existent versions of Windows)



  30. On BlackBerry and Other Patent Trolls

    A roundup regarding patent trolls, starting with the bigger and latest joiner, BlackBerry's new patents apparatus


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