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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: greatplains_guy who wrote (70909)	11/1/2014 3:02:34 AM
From: i-node	1 Recommendation Recommended By greatplains_guy Read Replies (1) \| Respond to of 71588

>> "When corporations (and individuals) spend more time and effort seeking out narrow (but lucrative) tax favors and benefits instead of basing their decisions upon how best to compete and succeed in a free market then the rate of growth of the entire country is depressed." This is the current left wing anti-corporate dogma. But how is a business entity depressing the rate of growth when it represents its interests (that of its shareholders) in trying to get the most favorable treatment it can get? I think that was a silly statement on his part. A corporation like, e.g., Walmart, operates on exceptionally narrow profit margins. If they can save money on corporate income taxes, what could be more productive? Prices of products to consumers are reduced leaving them with more disposable income, customers are better served, stockholders have more money (or equity) with which to invest. And the corporate income tax is a pittance compared to the damage it does. Judge Learned Hand of the Court of Appeals, made the point eloquently in one of the top few landmark tax cases in US history: "Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands." Gregory v. Helvering 69 F.2d 809, 810 (2d Cir. 1934), aff'd, 293 U.S. 465, 55 S.Ct. 266, 79 L.Ed. 596 (1935) A corporation is, for this purpose, in no way different from any other taxpayer and never has been (just steering clear of Citizens United, a priori).