readthenotes1 3 days ago

Why do you assume a 50% tax rate in the United States when it is only 21%?

3
quietbritishjim 3 days ago

I think they meant "assume" like a mathematician, i.e., pretend it is this simple value to make all the calculations easier to understand.

But it's still useful to know the real rate is 21%, thanks.

jsherwani 3 days ago

In California, the maximum personal income tax rate is effectively closer to 50%, which is where my mind went, but you're right, it's different for companies.

In my example, the tax rate isn't the point though, it was used just to illustrate the math.

The main point is that it makes no sense to require amortization of software development expenses. The idea that this letter is an attempt to restore rationality in the tax code.

cjbgkagh 3 days ago

State, city, property, social security tax, other fees and levies that should really be classified as taxes. The total tax burden can really add up.