Taxes are not usually something we endorses or condones, but inventory taxes is one of the rare exceptions. Taxing inventory provides an incentive to release capital, in the form of manufactured goods, from a non-use to productive use. This tax forces companies to sell off goods towards the end of their fiscal years in order to avoid incurring a loss against the goods themselves. This is why places like car dealerships have large inventory sell offs towards the end of their fiscal years; if they were to hold their vehicles until past the end of the year, they would never be able to recover the cost on the vehicles. A car being used to drive someone to work is better for the economy than one just sitting in a parking lot of a dealership. By taxing the holding of objects, there is an incentive to move the object through the economy, production without purpose is parasite on a healthy economy. The other side of this tax is it limits the economic freedom of business to wait and choose when to sell their goods at the time when they would get the best return, and thus the most profit. The issue here is that profit is financial profit, not economic profit. Economic profit and financial profit are two very different animals. Financial profit exists commonly without economic profit; in fact economic profit can coincide with financial loss. As the United States switched from horses to cars, the equestrian industries saw a sharp financial loss, while the whole of the U.S. economy saw an economic profit. Everyone, except the firm’s holders, benefits from the economic profit that inventory tax helps create.