zlacker

>>nemanj+(OP)
This is a rather depressing graph, what happened in 2022-2024?

>>anders+x41
The tax change that causes companies to have to weirdly treat developer salaries as some sort of asset such that they can only write off 20% of it per year. Outcome of this is killer for startups and causing a huge issue everywhere.

Bottom line: If a company makes $1MM in revenue and pays $1MM in salary, they owe taxes on $800k profit. Yes, this is actually the law now.

>>lubuja+9c1
do you have a link to the tax change?

surely tax changes come in the form of congressional+presidential bills and amendments

>>seekin+ll1
Tax Cuts and Jobs Act of 2017 moved domestic R&E expenditures (including salaries) under IRS Sec 174 from a same-year credit to a five-year amortized expense (similar to capital expenditures). It also amended 174(c)(3) to ensure that software dev is unequivocally an R&E expense[^1].

1: https://irc.bloombergtax.com/public/uscode/doc/irc/section_1...