The New York Times recently reported on tax avoidance schemes undertaken by Apple, the world’s most profitable company. The left (including the President) hates profits and wants people and businesses to pay higher taxes. Of course, Apple didn’t get to be so profitable by unnecessarily paying taxes that its competitors are smart enough to avoid.
The fact is that businesses, unlike some individuals, have the money and wisdom to hire tax planners to reduce their tax bills. Is this a bad thing? No, tax competition insures that governments cannot get too out of control in terms of their tax and regulatory policies. Should the rest of us be concerned? Well, I for one would rather have resources stay in the private sector than in the coffers of inefficient governments. Sure, it may not be “fair” that businesses and the wealthy can legally avoid heavy tax burdens. Next time the government asks for more taxes, it is worth realizing that some of the very people targeted for higher taxes will simply flee or find a loophole to avoid the tax. That is why they are wealthy and successful in the first place.