And that ain't how Canadian corporate taxes work.
In fact I've never heard of anything like that at all, but I don't claim to be an expert on taxation in the 60+ North American jurisdictions. Plus you Americans have all sorts of municipal/county taxes, so anything's possible. But typically stores dispose of merchandise to reclaim storage space and "get it off the books", not because of some inventory tax.
Lastly, Canadian prices weren't all that much different until the mid 80s. Believe it or not, shortly before the VCS was released, the Canuck buck (we didn't have Loonies in 1976) was actually worth more than the Greenback!
Also, this calculation is, quite frankly, insane:
nearly 800,000 carts times $50 bucks per cart works out to a nearly $4,000,000 tax bill every 3 months
That means that for $40,000,000 in inventory, you're paying a $4,000,000 tax bill. Every 3 months. Now, I'm no MBA or anything, but I find it EXTREMELY difficult to believe there's a jurisdiction that charges 10% PER QUARTER in taxes. That is 40% PER YEAR. You'd have to be in an industry with one hell of a markup to be able to survive that. Given that a lot of businesses can often hold onto product for several years - just ask Toys R Us what they're doing with a toy line sitting in their discount bin from 2 years ago, and I've occasionally seen things sit around for nearly 5 years before being heavily discounted - they'd end up paying the value of the item several times over, when you compound things.
Sorry, but I'm calling bullshit on that entire post.
Edited by freeweed, Tue Jul 15, 2014 7:51 AM.