Home MS and Cisco avoid taxes
News

MS and Cisco avoid taxes

Scott Wasson
Disclosure
Disclosure
In our content, we occasionally include affiliate links. Should you click on these links, we may earn a commission, though this incurs no additional cost to you. Your use of this website signifies your acceptance of our terms and conditions as well as our privacy policy.

Some folks have their panties in a rather nasty wad over this San Francisco Gate story about how Microsoft and Cisco avoided Feneral income taxes in their last fiscal year. How could such incredibly profitable companies end up tax-free? Simple. By handing out stock options, which employees then exercise:

Like many high-tech firms, Cisco and Microsoft are allowed to take a tax deduction for money their employees earn when they “exercise” options and buy stock in the company at a preset price.

I saw this story at Slashdot, where the poster remarked that it was “Pretty scary.”

Oooh, I’m terrified.

Sometimes, I get the feeling the Slashdot types think just about everything is “pretty scary,” from the prospect of the most miniscule, never-gonna-happen restriction of online “free speech” to the bathroom soap. Must be a fragile world to live in.

But no matter. The idea that Cisco and Microsoft employees have been so richly compensated it offsets the companies’ entire federal tax liability, why, that’s the epitome of the classic evil, greedy corporation. Right?

Latest News

Cisco Launches AI-Driven Security Solution 'Hypershield'
News

Cisco Launches AI-Driven Security Solution ‘Hypershield’

Crypto analyst April top picks
Crypto News

Crypto Analyst Reveals His Top Three Investments for April

Popular crypto analyst Andre Outberg has revealed his top three crypto investments for April. One of them is a brand-new GameFi/GambleFi Solana project that has gained popularity recently. Outberg is...

You May Soon Have to Pay to Tweet on X, Hints Musk
News

You May Soon Have to Pay to Tweet on X, Hints Musk

Elon Musk has said that Twitter may charge new users a fee to allow them to tweet and interact on X. This is being done to fight the long-standing bot...

Pakistan Interior Ministry Bans X Over Security Concerns
News

Pakistan Bans X over Security Concerns – But The Ban Might Be Temporary

Colorado’s New Law Aims To Protect Consumer’s Brainwave Data
News

Colorado’s One-of-a-Kind Law Aims to Protect Consumer’s Brainwave Data

Samsung's $44 billion investment in chipmaking in the US
News

Samsung’s $44 Billion Investment in Chipmaking in the US

AMD Releases New Processors for AI-Powered PCs
News

AMD Releases New Processors for AI-Powered PCs