api 3 days ago

Doesn’t this also unfairly penalize bootstrapped companies? VC track companies seldom have taxable profits.

1
davidjfelix 2 days ago

It may result in an outsized penalty to bootstrapped companies but being VC funded doesn't make you immune to this. VC funded companies with revenue will not be able to offset their revenue by reinvesting in R&D (software development) expenses, so in some cases they may be seen as having a profit when they previously wouldn't have. In those cases they'd have a tax burden.