Payroll for engineers should not be penalized by the tax code. If you pay an engineer a salary, you should be able to deduct that salary just as you can the salary of a lawyer or accountant.
Seems obvious and yet!
This is the contribution to tech layoffs that no one is talking about. Sure AI and no more ZIRP are impacts to the big players but this is the reason for SMBs. #section174
Wall Street journal last week: "Tech jobs have dried up—and aren’t coming back soon"
@Pragmatic_Eng over a year ago: covering the same topic as it was happening
The job market continues to be tough, especially compared to the peak market of 2021-2022
He’s right. Most under-reported story in tech because only accountants, CFOs, and owners really understand how diabolical these changes in #section174 actually are.
@ruima There’s a temptation to attribute the slowdown to something more interesting like AI or macro economic trends because those ideas are more intellectually stimulating than idiotic tax policy that was hacked together to game the CBO score of the TCJA, but that’s what happened.
Academic research about Section 174 is beginning to be published and it confirms what everyone in industry already knows: 174 is destroying American research and innovation.
@MikeCrapo Ha! Says the Senator that single handedly blocked the Family Tax Credit and the fix for businesses penalized by #section174. Country over party @MikeCrapo.
Many of the scientists and engineers that American firms have laid off because of forced amortization have families, and layoffs are bad for families. Something to consider, @ChrisMurphyCT
This should be a no-brainer for Republicans. Do they favor
✅ Pro-growth tax policy
✅ Pro-family child tax credits
✅ Ending fraud in the ERC program
Or do they care more about
❌ Mike Crapo's hurt feelings
Still lots of GOP opposition to the Wyden-Smith tax bill, which will finally get a cloture vote in the Senate this week. Vote is expected to fail
But the bill still has some R backing. @SenToddYoung, who previously voiced his support, tells me he’ll still vote for the tax bill
@PatrickFIanagan I don’t understand that quote or quite frankly the overall increase at all. Why wouldn’t they take it before? We did amend prior years as to take more credit because these new rules shined a light on us being too conservative with R&D previously.
Big Tech is not killing innovation. The fact that US tax code, since 2022 in #section174, penalizes R&D. This means companies focus on quick, predictable wins vs. long term, riskier bets. You reap what you sow. https://t.co/TZrwCpiavY