Software and computer companies such as Microsoft Corp., Hewlett-Packard Co. and Dell Inc. are gearing up to fight an Obama administration plan to curb offshore tax avoidance.They use our courts and our law enforcement and our regulators to enforce their IP licenses, and they want to assign that IP to dummy corporations
The $15.5 billion proposal in President Barack Obama’s 2011 budget targets what the Internal Revenue Service calls the growing problem of so-called transfer pricing. The technique allows companies to reduce their tax bills by transferring intangible property such as patents, trademarks and licenses to offshore subsidiaries.
Additionally, Microsoft has evaded Washington state taxes over the past 13 years, to the tune of $1.27 billion, with a similar shift by opening up a store front in Nevada. (see vid)
But don't you worry about Microsoft, they are lobbying to have the tax gutted, as well as getting an amnesty in the lege, so they won't owe anything, and the state will find some way to deal with their $2.8 billion deficit over the next few years.
Silly voter, taxes is for plebes.
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