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
The "Section 174" tax change always gets brought up, but wouldn't that be kind of a "tail wagging the dog" explanation? Surely, if it's worth it for a business to hire talent, then it's still worth it regardless of some esoteric tax rule. Are there actually companies sitting there in their Hiring meetings saying "Gee, we really need to expand our business and hire some engineers--if it wasn't for this tax law, we'd be hiring!"

>>ryandr+VB1
Cashflow problems regularly kill business. Now you need a much higher cash buffer than before (in parent example where is that 800k coming from?). Combine with much tighter VC market and there are definitely many startups closing up shop because of this.