After five years you are back to the status quo. It is a short term problem, long term there is no difference between the two. It primarily hurts young companies that don't take VC money, and shortens the runway of those who do.
It also affects hiring growth because every net new dev starts a new 5-year runway.
It is much worse for young companies for sure, but it’s not great for any company.
You’re forgoing returns on .1 * salary * tax rate for 5 years, .2 * salary * tax rate for 4 years… for every software dev in the company.