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 20/7/2014: Jolla in India, Mega Censored in Italy

    Links for the day



  2. Longtime Mono Booster Joins Microsoft-linked Xamarin

    Jo Shields almost joins Microsoft, settling instead for its proxy, Xamarin



  3. Linux Foundation Welcomes Patent Aggressor Red Bend Software

    The Linux Foundation's AllSeen Alliance welcomes as a member a company that uses software patents to sue Free/Open Source software



  4. Matt Levy From Patent Progress (and CCIA) Does Not Really Want Patent Progress

    Matthew ('Matt') Levy moved into a foe of patent progress last year, but he still runs a site calls Patent Progress, in which he diverts all attention to patent trolls (as large corporations such as Microsoft like to do)



  5. Attacking FOSS by Ignoring/Overlooking Issues With Proprietary Software

    The biasing strategy which continues to be used to demonise Free/Open Source software (FOSS) along with some new examples



  6. Links 19/7/2014: CRUX 3.1 is Out, CyanogenMod Competes With Google Now

    Links for the day



  7. Microsoft's Massive Layoffs Go Far Beyond Nokia; Nokia's Android Phones Axed by Microsoft's Elop

    Microsoft's rapid demise and permanent exit from Nokia's last remaining Linux platform (after Microsoft had killed two more)



  8. Patents on Software Already Being Invalidated in Courts Owing to SCOTUS Ruling on 'Abstract' Patents

    The Federal Circuit Appeals Court has just "invalidated a software patent for being overly abstract," says a patents expert



  9. OpenSUSE 'Community' is Crumbling, AttachMSFT Killed SUSE's Potential (Except as Microsoft Tax)

    Not much too see in the land of SUSE and Attachmate, or formerly the company known as Novell



  10. Links 18/7/2014: Slackware Turns 21, Spotify Switches to Ubuntu

    Links for the day



  11. Links 16/7/2014: Manjaro 0.8.10 Third Update, SIA Migrates to Red Hat

    Links for the day



  12. Microsoft's Latest Round of Massive/Bulk/Large-scale Layoffs

    Microsoft boosters are preparing 'damage control' pieces ahead of massive layoffs at Microsoft



  13. Secrecy Allows British Government to be Manipulated by Microsoft for Spyware Behind Closed Doors

    Dependence on malicious software from NSA ally Microsoft is highly dependent, at least in Britain, on government secrecy and vain refusal to comply with Freedom of Information (FOI) requests



  14. Software Patent Applications Already Being Rejected in the US Owing to SCOTUS Ruling, Some Patent Lawyers Are Fuming

    Good news on the software patents front as the USPTO starts rejecting software patent applications, based on patent lawyers' words



  15. Links 15/7/2014: New Plasma, Google Announces Project Zero

    Links for the day



  16. Interest in Free Software Coverage and 9 Months With Tux Machines

    Thoughts about the level of interest in Free/Open Source software (FOSS) and growth of at least some sites that focus on GNU/Linux



  17. White House Backs Away From Appointing Patents Zealot to Top USPTO Position

    Philip Johnson is no longer poised to become the Director of the USPTO, which is basically an establishment that provides protectionism to primarily US-based corporations



  18. Professor James Bessen Presents the Case Against Software Patents After Important SCOTUS Ruling

    The debate about software patents in the Unites States continues, with academia on one side and greedy patent lawyers on the other



  19. Software Patents Demising in the US as Microsoft Patent Attacks on Android/Linux Suffer a Huge Setback

    M-Cam's assessment of Microsoft's bundle of extortion (using software patents) shows toothlessness, irrespective of the SCOTUS decision to effectively annul "abstract" software patents



  20. Links 13/7/2014: KDE Activity Surge

    Links for the day



  21. Pro-Microsoft Spin in Microsoft-Funded News Networks

    The rogue media (misinformation) campaign of Microsoft benefits from networks which have been paid by Microsoft over the years



  22. Cronyism at Play: European Hostility Towards Free/Libre Software Despite Espionage and Moles

    Europe continues to be held hostage with back doors, lock-in, and massive payments to foreign powers, despite evidence that these powers are destructive and hostile



  23. Wirelessly-Controlled Contraceptives and Other Villainous Bill Gates Initiatives

    Remote controls for people's reproductive systems are now in the making and Bill Gates is a prominent investor in the technology



  24. Links 12/7/2014: CrossOver, New Wine

    Links for the day



  25. Links 10/7/2014: LXLE 14.04 in Headlines, Plasma 5

    Links for the day



  26. OpenDocument Format (ODF) Still Alive and Kicking

    Caligra, WebODF and various influential nations' departure from Microsoft Office will help famous projects such as OpenOffice.org and LibreOffice make ODF the only international standard for editable documents exchange



  27. The Effect of Corporate Media Bias: FOSS Demonisation and Microsoft Openwashing

    A set of very recent examples where the corporate press produces FOSS-hostile articles (or pro-Microsoft articles) by citing biased sources of convenience



  28. The NSA's Top (and First) PRISM Partner, Microsoft, Lies to Governments and Businesses as Office Gets Banned in China

    Developments in China reveal that security and privacy threats posed by reliance on Microsoft are so great that a ban becomes inevitable and continues to expand (Microsoft put on more and more block lists and blacklists)



  29. Microsoft's Propaganda Machine Tries to Shift Security Debate Amid Serious Catastrophes

    Observations and analysis of some recent deception in corporate news sites (like Condé Nasty), trying to pretend that Microsoft is secure, that Microsoft is pursuing security, and that FOSS and Android security or privacy are inherently poor



  30. Despite SCOTUS Ruling, Microsoft Still Extorts Companies and Product Buyers Using FAT Software Patents, Latest Victim is Canon

    Canon and Microsoft sign a patent deal which relates to patents on FAT file systems and impacts some of Canon's products, potentially Linux products as well (Canon makes drivers for Linux but does not develop products with Android or GNU/Linux just yet)


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