Should companies be permitted t0 relocate for tax purposes?
Although the tax revenue that would be lost by abolishing the
corporate income tax would have to be offset by higher taxation
on individuals, doing so would, these economists believe, promote
economic efficiency since companies would no longer spend so
much time, energy, and money trying to avoid or reduce their taxes.
DrscrJssr0N qussrIoNs
ln your opinion, do corporations now pay their fair share
of taxes? Explain why or why not. lf not, what should be
done about it?
Do corporations have a social responsibility not t0 exploit
loopholes in the tax system or use accounting tricks to
dodge taxes? Explain whY or whY not.
lf a company like Apple is not acting illegally, is there
anything wrong with its tax avoidance glmmicks? In
general, is there anything wrong with either individuals or
corporations arranging their affairs so as to minimize their
taxes? ls that all thatApple was doing?
Why do you think Starbucks decided to pay voluntarily
taxes it was not legally required to pay? Was this the right
decision from the moral point of view? From the business
point of view? Should Apple do something similar?
5. Should corporate taxation be abolished? Explain why or
why not.
6″ lndividual income from dividends and capital gains is now
taxed at a lower rate than individual income from wages.
ls ihis fair?
7. ln orderto avoid U.S.taxes,some long-standingAmerican
companies have reincorporated overseas, which lhey can
do if, after a merger or acquisition, {oreign shareholders
own more than 20 percent of the company. Should
companies be permitted t0 relocate for tax purposes?
ls their doing so morally acceptable? ls it unpatriotic?