please provide a clear, non-politicized reason for the tax, besides “Mo Munee For Goobermint”.
Can’t seem to find one . ...
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.