“America has two tax systems, separate and unequal. One is for you and me and the listeners, and we pay each year, but if you’re a corporation you’re allowed to reach back (sometimes 20 years) and carry forward for many year tax losses and tax benefits that smooth out your tax bill. Now, the second thing Mr. Murdoch does that’s very important is- among the largest corporations in America, Newscorp ranks third in Tax Haven subsidiaries. When you have a tax haven subsidiary (the Cayman Islands, Bermuda, Panama) what you do is you take expenses in the United States and take the profit in those subsidiaries.”
Columnist David Cay Johnston checked the tax information on Newscorp (a publicly traded company) and found that they made $4.5 Billion through tax havens. There’s no transcript, but listen to the ~3 minute audio for more information.
A Hulu spokeswoman did release a statement to All Things D, a Web site owned by the News Corporation: “Unfortunately, we were put in a position of needing to block Fox content on Hulu in order to remain neutral during contract negotiations.” Hulu refused to comment further.
But for reasons that remained unclear, the blockade did not work in all Cablevision households. Furthermore, within hours, the News Corporation realized that by blocking Cablevision subscribers’ computers it was also blocking some people who pay Cablevision for Internet only and pay competitors like DirecTV for television. Those people were “caught in the crossfire,” Ms. Wright said.
The News Corporation reinstated access in a matter of hours.