UPDATE: The day after David Cay Johnston broke this story, the Reuters reporter was brought back on “Morning Edition” to admit he had made a mistake. In fact, News Corp PAID $4.8 billion in taxes to the US government over the last four years. Umm…oops.
Most of the ongoing scandal involving multinational News Corp and its head, Rupert Murdoch, is unfolding in Britain. But there’s cause for outrage in the US as well.
As reported this morning on NPR, News Corp took in $10+ billion over the last four years. And the taxes they paid on that profit came to a negative $4.8 billion. That means the US government paid the corporation $4.8 billion, single-handedly boosting its bottom line by 50% over those four years.
According to the story (listen below), there’s nothing illegal going on here. News Corp is taking advantage of opportunities embedded in the corporate tax code, basically reporting its profits through its subsidiaries in tax-haven nations and its losses in the US.
Remind me why tax-code revision is such a politically taboo subject?