Minimizing taxes

Letters to the Editor
Palm Beach Post
September 30, 2014


Minimizing taxes is business’ job

I see another commentary in Sunday’s Post criticizing corporate “inversions” to minimize taxes (“Congress kicks fix for taxes down road”).

Decades ago, Judge Learned Hand stated that no one is responsible for paying more in taxes than are legally due. Any company, from the largest corporation to the smallest mom-and-pop deli, not only is entitled to minimize taxes but should do so, because this frees up resources to benefit their customers, employees and investors.

Conversely, added tax expense has to be passed on to end users (you and me) in the form of higher prices. This is what Ronald Reagan meant when he said, “Corporations don’t pay taxes, people pay taxes.”

In Econ. 101 we learned the Law of Supply and Demand: When the price of a product rises to pay higher taxes or other expenses, demand for that product drops. When demand drops, production drops. And, when production drops, jobs are lost.

Higher prices, lost jobs: a scenario only a liberal like Barack Obama could love.

RICHARD MAGINNIS
PALM BEACH GARDENS