In "Corporations Do Pay Income Taxes" (Letters June 16) Jonathan Aurthur establishes an implausible premise, then builds a case upon his "house of cards."
In his refutation of Times Board of Economist member Don R. Conlan, Aurthur postulates that a corporation is, by legal definition, a (fictitious) "person" and thus pays income tax like all other taxpaying persons. He fails to consider two factors, however.
First, most state (including California) corporate taxes are, legally, franchise taxes based upon net income. They are not legally defined as income taxes, although they effectively are just that.
Secondly, corporate income taxes differ from personal income taxes in that they are based upon net profit, after deduction of all costs, whereas personal income taxes are not.