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

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.

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.

Seattle, show your support for Mike McGinn on Facebook

Add Mike McGinn to your Facebook profile photo via The Needle's profile customization feature:

As it gets closer, it's just not how I expected it to be...

the end of the Bush era. We've been waiting for this day for so long, but the thrill isn't rising yet at all. I'm calm, perhaps distracted by my fun new work project - but, I expect this to change soon... The end of Guantanamo, implicit corruption in government and the beginning of the Obama administration (even if he's appointed centrists), the first African American presidency... I am looking forward to the Northwest's inaugural balls!

What percent of volunteer hours go into fundraising?

I often wonder what percent of volunteer and staff hours go back into fundraising efforts for nonprofit organizations. Rather than progressive tax systems properly funding our overall societal needs and efficiently regulating corporate harms, we have a huge network of nonprofit organizations which attempt to fill the gap.

I received this handwritten letter from Sierra Club President Carl Pope - I'm assuming it's written by a volunteer or staff, asking me for exactly $2,675 (not sure how they came up with that number). They were nice enough though to include a self addressed stamped envelope. Click the images to enlarge them.

When I see stuff like this, it just makes me wonder how we ended up here. This seems like a very inefficient system. I imagine that there are tremendous inefficiencies in the nonprofit model that's arisen in our society to make up for lack of government services and protections.

The SEC's War on Trees

I received these five letter packages for some AIG shareholder settlement from 2005. I imagine I'm bound to get even more bundles after the shakeout from this year's AIG government bailout has its impact. I often get these long documents from companies I own stock in. There seems to be no way to tell them to stop - and they don't seem to filter on duplicate names. My broker told me it's an SEC requirement.
 
In the future, I'd rather the SEC actually regulate business into following the law rather than relying on class action lawsuits which take longer, result in huge payouts to law firms and which result in many trees being destroyed so that the average shareholder can receive multiple copies of the near incomprehensible documents.

A new business model for journalism...students?

I've oft wondered recently whether journalism schools are having a hard time attracting new students. It's a bleak time to think about a career in traditional journalism.

That said, it's been a heady week in new media. Last week, Arianna Huffington closed a $25 million venture investment in her startup new media outfit, The Huffington Post. Meanwhile, Tina Brown, Huffington-buddy and old media personality, gloated about the problems plaguing old media (Kill the Media Zombies) in her recently launched upstart The Daily Beast.

Just below that on the front page, The Daily Beast features a story "How I got my sugar daddy", by Melissa Beech (written under pseudonym). Ms. Beech proudly proclaims funding her college career with $60,000 annually in payments from a wealthy benefactor she discovered through a website for such arrangements. If you read through you'll see that Ms. Beech is... a college senior in Philadelphia majoring in journalism and economics ... with aspirations to work in broadcast journalism.

Seems like while Ms. Brown harangues old media for its business practices, her new media practice his driving page views by promoting what some call the oldest profession. Perhaps Ms. Beech has stumbled on to a new business model for journalism after all.

Sarah Palin Heads Home

Obama Sunglasses: Is he the one?

Obama's sunglasses make me wonder...is he the one?

Or, is he an agent?

I guess we'll have to wait to see how populist his agenda is!