Microsoft CEO Satya Nadella will be sitting in the House gallery as an honored guest at the State of the Union (SOTU) address tonight. By all rights, he be should sitting before a Congressional committee instead, answering for his company’s blatant tax avoidance.
Microsoft is playing a game called “Global Tax Dodge.” But don’t look for it on the company’s Xbox video system. It’s only available to Microsoft’s accountants and high-priced lawyers. Even though the rest of us can’t play, we all foot the company’s $34 billion price tag.
That’s about the amount of tax revenue Microsoft is not paying because it has stashed $108 billion in profits offshore. As revealed in a Seattle Times report last month, Microsoft uses a web of overseas subsidiaries to dodge U.S. taxes, knocking its tax rate down to a minuscule 4.5 per cent on its offshore profits. That’s lower than most working families pay.