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Currently the corporate rate is higher than the personal rate.

As an aside, something like 60% of corporations pay no federal income tax. (It's in an IRS report that's been mentioned here and/or on PA several times.)

I remember the local furnace repair guy being upset because inventory increases were considered income. It was his first year in business. He bought common replacement parts to have on hand for repairs. The part is not an expense until it is sold.

I suspect he misspoke and meant he had to pay higher property tax for the increase in inventory. He shouldn't be paying income tax on inventory unless he did something really odd (got inventory as a gift, accepted it as bartered income for other goods/services).

As for the expense part, I'm a big foggier on that part but as I recall he's right that it's not an expense until it's sold or used.
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