Second honest question: a corporation is owned by people. People pay taxes. Why should those people have to pay taxes twice on the same money - once one it gets to google and once when it gets to them?
Reduce costs, increase profit by increasing market by dropping taxes. Companies are moving away from the states, and law is remaining stagnant for a evolving market.
To your second point: Yes, obviously corporations are owned by people. But nothing forces a corporation to pay a dividend. So if you don't tax the corporation itself, the corporation becomes a tax free investment vehicle. People would just keep everything in a corporation including investments, cash reserves, houses, cars, jets, yachts, etc.
I find Google's behavior to be sociopathic and Enron-like. While it's perfectly "legal" it is socially irresponsible. If Google wants to withhold monies because it thinks corporate expansion is better for society, it should withhold from its charitable contributions rather than its taxes. Otherwise pay your goddamn taxes. I pay mine, I don't want to pay Google's, too.