Please read the following article entitled “How Delaware Thrives as a Corporate Tax Haven”, published in the New York Times June 30,2012.
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Thinking about the information presented in that article, as well as what you have learned from the textbook readings, please post responses to the three questions below:
- The current system encourages states to compete with each other to attract businesses to incorporate in a particular state, regardless of where they actually operate their business. How do you feel about this practice? Do you think this competition is good for the economy? for states? for business? for consumers?
- Should Delaware change their state law regarding corporations? If not, why do you think the current system is best? If you favor change, explain why and provide an example of the type of change you support.
- Should corporations incorporate in Delaware to take advantage of the favorable laws? Is it ethical?
After you have posted your thoughts, review your classmates’ posts and respond to at least two of them.