Microsoft ex Manager Lobbies for $100 Million tax cut
By Bala Shah

Microsoft is the world’s most successful software company and has earned $500 Billion in revenue since its inception.  In Jan, 2010, Microsoft announced record revenue of $19 Billion for the second quarter ending Dec 31, 2009 which was a 14 percent increase over the same period in 2008. Net income was $6.66 Billion.

Microsoft produces good software and is helped by its market domination in some sectors.  Over the years, it has also built up a sold distribution system.  It is a global company having promoted many Indians to key positions.  More recently, its co-founder Bill Gates has won millions of fans by donating billions of dollars to charity and social causes.

But Microsoft plays a hard game when it comes to lobbying for favorable Government policies on tax. 

Website Microsoft Tax Dodge details how Microsoft makes its home in Redmond, Washington. But since 1997, Microsoft has dodged $728.8 million in taxes by recording its software licensing revenue in Nevada. If this practice is proven to be illegal, the company could owe as much as $1.24 billion with interest and penalties.

About one third of Microsoft's revenue comes from selling software licenses to large corporations and PC manufacturers. Washington State has no income tax but requires businesses to pay what are called Business and Occupation or B&O taxes. 

Microsoft Tax Dodge is reporting on how an ex Microsoft General Manager and current elected politician Rep Hunter is lobbying for the State of Washington to give the software company a $100 Million annual tax cut and possible $1 Billion amnesty on past tax evasion.

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Facing a $2.8 billion deficit and pending insolvency, Washington State's House Bill 3176 proposes changes to the B&O Royalty tax that would give Microsoft an estimated $100 million tax cut annually and possible amnesty for more than a billion dollars in past tax evasion.

Under current law, all of Microsoft's worldwide licensing revenues of approximately $20.7 billion annually are taxable at .484 percent or '$100.1 million. Under the new law, only the portion of software licenses sold to Washington state customers would be taxable - perhaps resulting in less than a million annually in royalty tax from the company.

The lead sponsor of HB3176 is Democratic Representative Ross Hunter, who represents Medina, home to Bill Gates and a number of current and former Microsoft billionaires and multi-millionaires, and other areas around Microsoft's corporate campus.
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