Re: I Hate Progress!

Posted by Paul in Mich on May 14, 2005 at 05:52:27 from (152.163.101.7):

In Reply to: Re: I Hate Progress! posted by Joe (Wa) on May 13, 2005 at 17:34:13:

I was going to expound on how taxes affect seemingly moronic business decisions, but you said it for me. You"re right, inventory taxes do push the chain so to speak. Every large company, and even smaller ones are now making suppliers responsible for maintaining their inventory, and suppliers are doing the same to raw material manufacturers. The loophole in that scenerio is that more and more companies are buying old, non road worthy trailers, and storing inventory in them and calling it "in transit". Government needs to rethink some of these punitive taxes, which inventory tax definitly is, and get out of the business of stifling business. There is also another reason for not manufacturing for inventory, and that is that if engineering changes occur after a part or assembly is made, then it renders all parts or assemblies prior to the engineering change as obsolete. That in turn creates a situation where a company may end up with that part or assembly on the shelves for years and being taxed over and over and over again. So I do understand to some degree why companies fill the dumpsters, but nuts and bolts being replaced with the same nut or bolt from another supplier crosses the line in my estimation.

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