I think common sense needs to be applied here. Corportations should NOT be taxed to death, but they need to pay their fair share, in that regard, corporate welfare, and off shore accounts, need to stop. On the other, hand the tax system needs to be over hauled, and simplified, and if that is done, I think a more fair and equitable tax program can be carried out. This problem can be solved.
My personal opinion is, that making a profit is not un-ethical but being greedy is. Using legal or illegal ways to not pay your fair share of taxes is immoral, and sometimes immoral in my judgment is worse then illegal, in terms on long term consequences. You can legally, treat your workers like crap, a.k.a. walmart, but your public image will take a hit. My point, just because economics 101, dictates something will happen, doesnt neccesary make it right. To be fair, i am not an economics expert, so I dont neccesary claim its wrong either.
But This is a very slippery slope too, we need the government to not abuse its power, to NOT over-regulatate or over-tax businesses.