841–850 of 991 posts
Are you telling me that this law affects these tech companies so much and they just let it stand?
I find this improbable.
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Why would a senator from Kentucky vote for a bill that doesn't benefit his state to a meaningful amount?
It does benefit his state, they will get higher quality software.
Even when a massive security funding bill was put forth the years after 9/11 to provide additional funding to NY, US ports, and other national security areas they had to pad the bill with funding to protect areas that wouldn't likely be targeted just to get support.
https://www.heritage.org/homeland-security/report/the-specte... (Yes it's insane that I'm linking to these horrible people)
That means even with a bill that is vital to US security, could be wrapped in patriotism, and at a time when NYers had sympathy from the rest of the country representatives were still selfish as fuck.
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I'm not an accountant, but as I understand it, you don't pay taxes on profits, but on revenue. So previously, some 20% of all revenue would be owned as corporate income tax, and startups would deduct it all as they're spending much more on R&D than they owe in corporate income tax. But with this tax change, the deduction would be much lower (80% lower IIUC).
If companies paid tax on revenue the US budget would be perfectly fine.
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Why would a senator from Kentucky vote for a bill that doesn't benefit his state to a meaningful amount?
Seriously?
It's even worse if you're a Republican. If a bill comes up for one specific item that would increase government spending but not in your state what are you going to tell local Republican voters?
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>me it seems like trump holds that as a higher priority than most Why?
He seems to care immensely about being viewed as the "winner" and the "best" at everything. I also have to assume that anyone interested in slapping their name in big gold letters on as many buildings as possible is interested in the perception of legacy.
If anyone cares about combatting government propaganda in the US, do this: Query any search engine for "are US income taxes direct or indirect taxes" Every one will tell you that they are direct taxes. This is false. The supreme court has exclusively held that income taxes have always been indirect taxes (excises specifically, read about what an excise is in any authoritative source on tax law) in a constitutional se…
There are some misunderstandings in the comments that seem to stem from not having read the section, so I thought it was worth referencing the actual text [0]. It's quite short and easy to read. The most important bits: * Subsection (a) requires amortizing "Specified research or experimental expenditures" over 5 years (paragraph (2)) instead of deducting them (paragraph (1)) * Paragraph (c)(3) is a Special Rule that…
It's pretty bad. It had a huge impact on my personally, I'm a small R&D shop and basically I have had to end all risky long-term research projects. In addition to the research costs, I'd also have to pay taxes on the research costs mostly up-front. Significantly, if the project doesn't work out, I'm still out of pocket for the tax money. It's a penalty for taking a risk, and it kneecaps American innovators in a globa…
This is insane, how does it make sense? Employee salary expenses are no different from other expenses to run your business. Imagine they did this for raw material instead, a restaurant could only expense 20% of the food that they sell. If they purchased $100 worth of food, but could only sell $50 worth of it, they have to pay tax on that even when making a net loss overall. It just does not make any sense. There woul…
If the restaurant buys e.g. a fancy oven or a delivery truck, it can't expense 100% of that cost in year 1, it has to spread that cost over the lifetime of the oven or truck. Labor that operates the business day-to-day would be an expense, labor that creates a capital asset is more complicated. I happen to think most employee time in software dev is more on the day-to-day operation side, and should be expensed, but I…
Sure, you can only deduct a certain percentage of the asset's value as an expense each year, but your cash expenditures to pay for it are also spread over a multi year period.
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Could be a sign that the commenter was not willing to spend all his day writing, especially once his point was made.
I can’t tell if they’re trying to refute the point (ie the list being long means that it’s definitionally not being hid) or support (ie the list I made is finite and therefore the corruption is hid). But I think of it like trying to estimate the size of an iceberg by observing the tip. Just because you know a little bit doesn’t mean you actually know about the scale. And there’s every reason to believe it’s quite ext…
As you state, the size of the iceberg cannot be understood by what we can easially observe. While there is corruption in the US, it isn't really much worse than other places that are not known for corruption - though understand that the US has a lot higher population and so it might seem that way. (though often those other places are just hiding truth)
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I think you may misunderstand. For most of those, you get the choice to amortize if you prefer. In this instance, you must amortize, which is a big problem for startups.
Generally it’s not a choice. Valuable assets are required to be amortized over their useful life with limited exceptions