How a change to US tax law Section 174, forcing amortization of software labor, led to higher tax bills, less hiring, more layoffs, IP moving abroad, and more
The Pragmatic Engineer Gergely Orosz
Related Coverage
Discussion
-
@gergelyorosz_
Gergely Orosz
on threads
Main motivation seems to be to increase tax income for the government the next 5 years to fill the gap in lost tax income caused by tax reduction for the wealthiest individuals
-
@matthausk
Matthäus Krzykowski
on x
Seeing lots of circumstantial evidence in last 3 months that many, many very strong international staff at US companies have been let go. Imo this is the best hiring market in 8-9 years. Was wondering why, maybe this is one of the explanations.
-
@thetanerdy
@thetanerdy
on x
Interesting read about how some easy-to-miss tax changes are affecting how smaller companies hire talented people: https://blog.pragmaticengineer.com/ ...
-
@rob_rasor
Rob Rasor
on x
Talk to your CPA but make note of these onerous changes. https://blog.pragmaticengineer.com/ ...
-
@stephenchip
Chip
on x
Will Section 174 lead to a reduction in engineering hires by US companies? Section 174 could incentivize startups to relocate outside the United States. This decision reflects a lack of practical business experience among many members of Congress. https://blog.pragmaticengineer.c…
-
@jeffreyw5000
Jeff Weinstein
on x
I had no idea about this tax change that hurts SME/bootstrapped software companies...bad bad bad! https://blog.pragmaticengineer.com/ ...
-
@joshgilstrap
Josh Gilstrap
on x
Seems like this will make the US less competitive in tech https://blog.pragmaticengineer.com/ ...
-
@gergelyorosz
Gergely Orosz
on x
A deepdive into what Section 174 means, and why this regulation staying is handcuffing the US software industry: https://blog.pragmaticengineer.com/ ... [image]
-
@lutherlowe
Luther Lowe
on x
An important issue flying under the radar for most. @ycombinator sent a letter to relevant Members and Senators with over 400 company signatories last Fall.
-
@ericnewcomer
Eric Newcomer
on x
This tax change is crazy
-
@pragmatic_eng
@pragmatic_eng
on x
A tax change rarely causes panic across the tech industry, but it's happening in the US. If Section 174 tax changes stay, the US will be one of the least desirable countries to launch tech startups. A deepdive into this important topic in today's issue: https://blog.pragmaticengi…