End the inventory tax

Me

[PapaBear3625]

please provide a clear, non-politicized reason for the tax, besides “Mo Munee For Goobermint”.

Inventory is an asset, and is treated the same as money in the bank.

Say you end the year with $100K more in parts/ingredients/supplies to make your stuff than you started the year with, $150K more in finished merchandise which is yet to be sold, and your net cash balance is $50K more than at start of year. You are taxed on $100K + $150K + $50K = $300K in taxable increase in assets.

[packrat35]

This was a big burden of book publishing companies. Back in the day, they ran larger printing and were able to warehouse and sell them.

This rule ended that and made for smaller runs and many more books going out of print.

[daniel1212]

If you are going to post this you should try to explain to others what you are referring to and the basis for your argument.

Conversations involving the property tax tend to focus on residential property and individual payers, but businesses also pay property taxes. In fact, it’s the largest tax paid by businesses on the state level. In addition to taxes on the value of buildings and land, businesses also can pay property taxes on their equipment and furniture, known as a business tangible personal property tax (TPP). A number of states include inventory as part of their TPP tax. Ten states tax inventory, with four additional states having partial taxes on inventory.

States have explored ways to repeal or limit the burden of inventory taxes, but local funding is a common sticking point. Because property taxes tend to be locally assessed and collected, the bulk of the revenue generated goes to local governments, meaning that elimination could strain local budgets. In Mississippi, for instance, the inventory tax was estimated to generate $168 million in 2010 for Mississippi localities. Immediate elimination of the tax could wreak havoc on local government budgets. - https://taxfoundation.org/does-your-state-tax-business-inventory/

[Macoozie]

“You are taxed on $100K + $150K + $50K = $300K in taxable increase in assets.”

But they are all your own assets?
It’s your stuff.
Why tax an asset?
That makes no sense at all.

I understand, disagree with but understand, an asset tax on vehicles like that in place in Connecticut. Kind of like a government grabbing “User Tax”.

Regarding the business tax described, with that logic, Goobermint should have a “Wealth Tax” on folks who have assets of any kind.

You know it’s bad when the ChiComs have a more fair tax system.

Thanks for the explanation.