Business Ethics

Read the case study Three-Card Monte" found in your book along with linked articles below. These articles provide insight on claims that the largest corporations are using deliberate tax avoidance to avoid paying their fair share. However, there are two sides to every story and supporters of these legal tax deductions call them profit maximization and in keeping with a business' fiduciary duties. After all, businesses are in business to make a profit and remain fiscally viable. If businesses are not able to take deductions to reduce their tax burden, they may go out of business putting thousands of people out of work. The question that remains is whether companies who are paying low to no income taxes, acting ethically.

1) Would you have a different opinion if private persons or small businesses took these same deductions to avoid paying income tax? why or why not?

2) Explain what potential changes you would make to identify a more ethical solution for this issue.