So the 2017 tax cuts that introduced this change were a massive boon to US companies, particularly the tax holiday on repatriated foreign profits.
So why do we need to give these large, very profitable companies another tax cut?
Or maybe we should be asking, what of the 2017 tax cuts are they willing to give up to pay for this change?
Remember that after a few years, none of this matters. You might be paying $200k in salary to an engineer and can only deduct $40k, but you're also making deductions "earned" in previous years?
Basically, I reject the argument that this change is responsible for layoffs. It is not. And changing it won't lead to a hiring binge. Layoffs exist to suppress wages in these largest employers.
Maybe we should allow a 100% software development tax deduction if the company hasn't fired more than 1-2% of its workforce in the last calendar year. Or maybe only if the workforce is unionized.
This whole thing is so anti-worker. It doesn't have to be this way.
for the big companies, this makes enough sense, but theres been new businesses opened since 2017, who did not benefit from that tax holiday. why should they be dealimg with this tax hike for everytime they grow their business?
i dont know how this is anti-worker? it's an extra cost to growing the number of people youre hiring, where you need them for 5 years. i guess businesses should start witholding RSUs and starting bonuses until youve been there for 5 years to match your tax ammortization?