Bill Gates’ Business Dichotomy:
In a recent speech before the National Education Summit on High Schools, Bill Gates spoke of the dismal state of U.S. public schools. He called for action: “We’d better do something about these kids not getting an education, because it is hurting us” and ” … because it is hurting them.” He was speaking as co-chairman of the Bill & Melinda Gates Foundation, where high moral purpose is combined with analytical skill to accomplish crucial work in world health and U.S. education.
As chairman of Microsoft, however, Gates is responsible for a business policy that actively harms public schools. Microsoft maintains a small office in Reno, Nev. — a state with no corporate income tax. Sixty billion dollars in licensing fees for Windows and Office software has passed through that office, and an estimated $300 million in taxes has been lost to Washington for the sale of products produced in Washington.
This is not as simple as this piece makes it look . . . .
Gates does have some responsibility to his shareholders to maximize their investment. So there is always temptation to reduce costs, like taxes. But, given the amount of cheerleading Washington does for Microsoft, claiming they’re a great asset to the state, is this right? Does this mean that the state is only collecting income taxes on local employees, while the software giant pays nothing to its home state?