I think stores are taxed on inventory.
“I think stores are taxed on inventory.”
Which is actually a false conclusion as to why inventory is bad.
Yes, money spent on inventory that isn’t sold results in taxes on that money. However, the value of the goods purchased is what is taxed. Also, if they money we not spent on inventory, it is taxed at the full rate on income.
In numbers: Buy $100 worth of inventory. The inventory has a net value at tax time of $100 or less. Usually less, much less, and extremely rarely more. That same $100 held is taxed at $100.