I’m no expert on inventory management or tax law, but I noticed a long time ago when I was fresh out of college that tax laws regarding inventory have made companies devise very ingenious ways of managing their inventory. I’m pretty sure this was one of the primary reasons that all of our manufacturing fled to offshore havens.
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I have a job for you! I have a development lab that has a ton of program-dollar expensed old equipment and misc pre-production parts and whatnot. I need to get rid of it all. Should I ship it to your offshore sites? It would give me at least a year delay to deal with the inventory people…
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Yes, NotDonner. I bought an old off-shore oil rig and I declared it a sovereign state. It is a tax-free haven for just such piles of junk …. er, I mean …. fully depreciated goods.
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sounds like you got that same invitation I did from the Sheikh, to invest. I hope it works out better than the Nigerian bank I was offered earlier… LOL
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I still sit by my email server every night, hoping to hear back from the Nigerian prince who is holding my money in safekeeping until he can return it to me a hundred-fold. Best investment I’ve ever mad! 😀
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Very incisive Biff. The next move should be to give yourself a raise and keys to the washroom, the one with the bidet.
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Thanks, Wilt! I keep giving myself raises, but my income never seems to increase. Must be the higher taxes. The bidet will just have to remain a dream for now.
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Had to Share this on FB (who? Shock! Horror!)
Love this.
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Thanks, Michael! And thanks for the FB share. Maybe now I’ll come to the attention of Mark Zuckerberg. Then fame and fortune will come my way for sure! (Or constant surveillance and a complete loss of privacy.)
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And I’m no economist, but even I recognize one of the underlying issues here: static vs. dynamic scoring. Impose regulation, predict results — and then watch human behavior change to cope with the new regulation. Heck, there’s even a tree in a local park that’s known as the moonshine oak. You can imagine the reason.
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The government uses whichever scoring method suits their needs at any given moment. Bureaucrats are all keenly aware of the Law of Unintended Consequences … they just don’t care. That’s because they get their slice of the pie no matter how big or small the pie is … or even if there is any pie at all. Meanwhile, they tell us to eat cake.
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When I worked at Texas Instruments, one enterprising tech had purchased a bunch of HEPA filters for a dollar a piece and kept them in storage. Inevitably, a year later, TI had to buy them back from him for a hundred and twenty dollars a piece.
Corporations work in mysterious ways…
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I used to think they were insane … but then I realized they were making rational decisions based on the insanity of federal tax laws and regulations.
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Just like your cartoon on capital expenditures: There are tax laws that make people do funny things…
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Indeed they do! They pull the tax strings … and we dance accordingly.
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