« | Home | »

My Own Private Delaware

Tags: |

The unassuming official home of Twentieth Century Fox, Kentucky Fried Chicken and 200,000 other companies

Hollywood loves a movie about a maverick individual taking on the might of a giant corporation – think of films like Erin Brockovich, Public Enemy or The Insider – but one breed of behemoth is unsurprisingly immune from scrutiny. Hollywood’s ‘big six’ studios – Paramount (a subsidiary of Viacom), Twentieth Century Fox (News Corporation), Columbia (Sony), Warner Brothers (Time Warner), Universal (General Electric) and Disney – may have their principal place of business in California, but they’re all incorporated in Delaware.

Delaware, the first state to ratify the US Constitution, is also the world’s leading tax haven, thanks to its generous provision of such perks as corporate opacity, banking secrecy, company redomiciliation and protected cell companies. Last year, 200,000 companies, including Fox, Universal and Warner Bros, as well as Coca-Cola, Ford, Kentucky Fried Chicken and two-thirds of the Fortune 500, were registered at the same single-storey address: 1209 North Orange Street, Wilmington.

Just as being based in Delaware helps Chevron, for example, minimise the taxes it pays in Algeria, Angola, Brazil, Argentina and Alaska, so it helps Fox avoid sharing the profit from films like Avatar with the state of California. This shouldn’t go down well with California’s state employees who are being forced to take three days unpaid holiday every month. Yet even as Governor Arnold Schwarzenegger’s ‘state of emergency’ shifts the multi-billion-dollar budget deficit burden to citizens, Hollywood’s reaping the benefits of tax-code changes last year that hand hundreds of millions in tax credits to movie studios. Don’t expect to see ‘Last Exit to Wilmington’ coming to a screen near you any time soon.

Comments

  1. Captain Pants says:

    Last Exit to Wilmers?

    It’s also where LRB USA is incorporated. For the very same reasons. Keep up the good work.

  2. Geoff Roberts says:

    Surely there’s some altruistic motive for this? No? Then it must be a tax haven. No different to any other big corporation.


  • Recent Posts

    RSS – posts

  • Contributors

  • Recent Comments

    • Sashimi on Racist Spires: I went to Oxford in 1959 in the days when the University was transforming from being a team building camp for men to run the empire (given away by Mac...
    • bertibus on Cosy Dirty Thoughts: Those magazines weren't allowed in our house, either... though now and then my sister would smuggle one in, and spend an illicit hour admiring Bobby S...
    • Agate on Racist Spires: I was at Oxford 25 years ago and I suspect my knowledge is way out of date. I was also at a less traditional college than some I think. As a workin...
    • John Perry on Dam Violence: There is real concern among activists in Honduras about the delay in issuing the results of Sunday's election. Previously (as when Clinton quickly end...
    • bevin on Dam Violence: Two interesting points: 1/ The prohibition of Presidents succeeding themselves was the excuse employed to justify the coup which removed Zelaya in 20...

    RSS – comments

  • Contact

  • Blog Archive

Advertisement Advertisement