Purpose:To contemplate the ethics of big corporations using loopholes to avoid paying taxes in the United States; and, to discuss the effects of the recent tax reform bill might have on such practices
Major issues in the case:1. Ethic’s of Google Tax Tactics
2. Tax Code Reform
1. Read the Bloomberg Businessweek article: ‘Dutch Sandwich’ Saves Google Billions in Taxes
2. Review the provided material attached3. Answer all 4 questions below.
1. How do you personally feel about this tax practice?Professor answer: I personally feel its away to get citizen to pay for certain purposes or debts the government has.
2. Do you think the corporations that practice these tax tactics had any impact on the economic crisis that began in 2008? Professor answer: Yes
3. In your opinion, is this behavior ethical? Professor answer: No
4. Should the government intervene and regulate this practice to make it illegal? Professor answer: It should be regulated for sure, who should regulate is another subject along with its legal standing.
5. Do you agree with Administration’s claims that the decrease in the corporate tax rate to 21% from 35% will bring large corporation headquarters back to America? Explain why or why not and provide evidence. Professor answer: No I don’t agree, I believe that this is only again to make the rich richer and poor poorer, and old saying pretty much the only ones this is going to be helpful for is the top 3-5% population