• This is a rush transcript from "Your World With Neil Cavuto," June 8, 2009. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: On paper, he has lost billions, but Rupert Murdoch is more concerned about a country that has lost a lot more, paying for so much so fast that it has so lost track of all of it, which has News Corp. chairman and CEO — and oh, yea, my boss — feeling sick on the very same day the president is talking up something else, health care.


    CAVUTO: He is going to be looking at getting health care reform through very, very quickly, including a proposal that he hasn't entirely ruled out, where health care benefits you provide your workers, like myself, would be taxed.

    What do — what do you think of that?

    And I mention it only — a lot of other CEOs who have sat in the same seat have told me, well, when push comes to shove, if it saves us money longer term, or we can shift a lot of our burdens off to the government, we're all for it.

    RUPERT MURDOCH, CHAIRMAN AND CEO, NEWS CORP: I think it's a huge tax increase.

    And I think that — I'm not convinced yet that these so-called reforms they're putting in are going to eventually reduce the cost of health in this country.

    Video: Watch Cavuto's interview with Rupert Murdoch

    We have to do a lot more in this country about prevention, I think. And, you know, we are becoming unhealthy. Our life span — we spend more and more on health, yet, our life span in this country is not as high even as France.

    And it's what we eat. It's the way we behave. And so...

    CAVUTO: So, you're for what the president is trying to do on that, just not...

    MURDOCH: Well, on prevention, yes.

    CAVUTO: Right.

    MURDOCH: And preventive things, yes. On all these new systems of health, I don't know enough about it.

    CAVUTO: Would it — any of this make you less inclined to offer generous corporate insurance benefits to your workers, if it was going to be taken over by the government, anyway?

    MURDOCH: No, whether it's the government or not, it's another matter. It's a question of what we can afford.

    And the problem with the welfare state is, as — as advanced in Europe as it has become, is that people feel the government owes them a living; they don't have to work.

    We have sent some reporters down to part of a part of South Wales the other day. They said there was only 6 percent unemployment. And, when we got there, there was additional 16 percent of people who are terminally disabled, on full pensions, and extra pensions for being disabled. Most of them weren't disabled at all.

    And one had just run in a marathon. It's — it's a joke. When people...


    CAVUTO: So, this guy is running a marathon, and he was getting benefits?

    MURDOCH: Getting benefits for being disabled.

    CAVUTO: Right.

    MURDOCH: My point is that, if you depend totally on the state, you don't depend on yourself. You don't get people wanting to work to buy — to — to save, to — even to start businesses.

    CAVUTO: I talked to a Democratic strategist last week, Rupert, who said, the message to moguls is, beware, we're coming after you, that you're where the money lies; taxing you is where the financing lies.

    And, in other words, it's not going to be a good few years for moguls, and — and, by extension, people who aren't nearly moguls, but are in that top 1, 2, or 3 percent.

    What do you think of that?


    MURDOCH: I think it's nonsense. There's not enough money amongst the moguls to pay for what we want to do. Taxes are going to have to go a lot deeper if they want to achieve everything they have set out to achieve.

    CAVUTO: By a lot deeper, include a lot more folks?

    MURDOCH: Yes, yes.

    The top 3 percent don't have enough money to pay for all of this. And, you know, they're the ones that invest. They're the ones that help create jobs, that back startups. And what you have got to see in this country, if you're going to see — and we have seen it in the past — is business formation, small businesses starting, people getting out on their own, employing 10 people, 20 people, some of them failing, and some of them turning into great corporations.

    The big, great corporations are not going to employ more people. Once they get to a certain size, they're thinking about how they can cut down, how they can get more efficient.

    CAVUTO: Right.

    Your newspaper, The Wall Street Journal, had a page-one banner headline today about China demanding all P.C.s sold in the country as of July 1 be shipped with software that blocks, I guess, offensive material. Pornography came to mind, but a lot of other human rights groups see that as a sign they want to censor everything.

    You have a lot of business there. Are you worried?


    MURDOCH: I'm not worried, because we don't do any business there, or so little that it doesn't matter.

    You know, foreign media is not generally welcome there. There — there are opportunities to have 5 percent of this or to invest in — in new things that are happening there. But there's no — you cannot go in and, say, start a newspaper or a television channel or whatever.