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The time bomb in the tax code that's fueling mass tech layoffs

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Re: The time bomb in the tax code that's fueling mass tech layoffs

#861

Earlier quoted context omitted.

Is it your opinion that the only factor relevant for those deciding what state to move to is quality of government? I'm surprised that things like the job market wouldn't come into play, for example.

I think quality of governance is a major reason, yes. When my parents immigrated to this country, they moved to a deep red state (Virginia) instead of the deep blue state next door (Maryland). Why? A focus on good schools, low crime, and low taxes, instead of a focus on economic redistribution.

I may have misunderstood, when you said internal migration in the earlier comment I assumed that was referring to people moving from one state to another rather than immigrating from another country.

> A focus on good schools, low crime, and low taxes, instead of a focus on economic redistribution.

That's also interesting. I wouldn't have rolled that up to quality of governance, but I could see why you would. To me that falls more into a sign of long standing culture, I could see a place with existing policies that match now having a terrible administration in charge.

Re: The time bomb in the tax code that's fueling mass tech layoffs

#862

Earlier quoted context omitted.

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.

I misinterpreted your original comment. I thought you meant he would act as the ideal benevolent leader to obtain this perception

Hah, oh yeah I could see reading it that way being very confusing! Trump and benevolent don't belong in the same dictionary.

Re: The time bomb in the tax code that's fueling mass tech layoffs

#863

Earlier quoted context omitted.

> Although probably not the actual intended effect This is actually a really common intention in laws like this. Get the tax cuts during your term, and then kick the can down the road so your successor's term is marred by the bad law. If your successor wants to fix it, they need to pass a different tax to recoup the costs, and incur the publicity of "raising taxes".

I think it’s partly that and partly the fact that tax bills tend to be scored on a ten year time window. Note that this law doesn’t actually change the amount of tax that software companies can deduct, it just requires them to spread the deduction over several years. So if you’re scoring your new tax bill on a ten year window and five years into the bill this thing kicks in, then it looks like more tax is being colle…

Cashflow is king.

You’re operating cashflow decides the health of your business, not your accounting profits, not anything else.

Only the operating cashflow and whether that grows as your startup/business grows decides whether your business lives or dies, everything else is for investors, mommy and daddy for final report card.

A business operator’s #1 focus is Operating Cashflow and this tax insanity law hurts cashflow tremendously for american service businesses who need to compete with all other major economies who dont have such an insane law.

Re: The time bomb in the tax code that's fueling mass tech layoffs

#864
post #758

Earlier quoted context omitted.

Just pledge copyright of contributions to eff or something.

Create a shell company with an X$ investment. Have the shell company write code. (Or more risky pay your company to write code as a work for higher.) Devolve the shell contributing its assets to OSS. Take a X$ loss in that year. Argue that it is perfectly legal to the IRS.

I wonder of you could also just pay bounties for specific features to be written for OSS.

Or have your shell company operating out of any other country.

Re: The time bomb in the tax code that's fueling mass tech layoffs

#865

Earlier quoted context omitted.

> He would do nothing because his supporters believe misinformation and worship him. Interesting, that hasn't been my experience. I live in a very red part of the country and most people I know are Trump supporters, including some family members have been very MAGA since 2016. I've been hearing more and more complaints over missed promises: no Epstein files, raising budgets, RFK is starting to water down his promises…

He missed effectively every promise from 2016. Why did these people vote for him 2 more times, especially after an attempted coup? Maybe these "complaints" are just an attempt to dodge personal responsibility for having supported a catastrophe.

Hey, you knew a guy (Physics BA) who almost aced the LSAT cold. Do you remember what his score was and how old he was when he took it?

Re: The time bomb in the tax code that's fueling mass tech layoffs

#866
post #713

Earlier quoted context omitted.

> Foreign workers are to my knowledge effectively always a service contract, since it's pretty complicated (if even possible) to hire FTEs across borders without subsidiaries, which are expensive to maintain. It's impossible (yes, I'm being absolute) to hire an employee who lives in or outside the US who is not a citizen or doesn't have a green card. All employees must have an SSN and go through i9 verification, whic…

Not if they are contractors. That's the point the parent commenter was making. All the reasons you list make it so they need to do so, instead of "hiring" them directly.

It doesn’t matter if the foreign workers are contractors or employees. The expense is considered R&D and must be amortized over 15 years. I’ve dealt with this personally since 2023 for my company working with a legion of tax consultants. There’s no loophole here, I assure you.

Re: The time bomb in the tax code that's fueling mass tech layoffs

#867
post #711

Earlier quoted context omitted.

I’m not sure this is exactly true. If your foreign workers are a service contract then those are services expenses immediately deductible. Same if you are using local service contracts. My understanding is this creates a drag for companies that want to hire f/t.

This is simply not true. Says my lawyer and CPA. And every other CEO/CFO I've talked with.

Same.

Re: The time bomb in the tax code that's fueling mass tech layoffs

#868

Earlier quoted context omitted.

What about art,Mozart, the Dead shakespeare, south park and everything in-between? Those aren't science, but are some of the most vital components of education.

Education describing what cultural artifacts exist and how to produce them isn’t ideology. These are objective areas of study. Though lots of cultural education is ethnocentric, where minority cultures are less represented, making the education less well rounded.

Education is not about what cultural artifacts exist, but why and how. Music appreciation and art appreciation, music history and art history are a small part of a music or art Education for someone who is hoping to practice it.

Re: The time bomb in the tax code that's fueling mass tech layoffs

#869

Earlier quoted context omitted.

Why would a senator from Kentucky vote for a bill that doesn't benefit his state to a meaningful amount?

Because they are a patriot. If not why are they in politics..?! Whom am I kidding...

Back during the communist vs capitalism and free market era

Politicians were patriotic like you hope them now to be, they were worried about the rise of communism and were extremely attentive and focused and unified to making sure capitalism and free market works for the masses, that everyday westerners are enriched and have better social and health outcomes than their communist counterparts.

It did succeed to the point that Boris Yeltsin after dissolution of USSR was dumbfounded by just looking at american grocery stores that are affordable for public in comparison to the Empty shelves back at home [0]

However after the end of cold war they gave up on bipartisan, or helping society as “one nation” in almost every major western democracy. They filed every major new infrastructure build with red tape, red tape, bureaucratic nightmare. They made the economy as a pingpong ball to intentionally sabotage it for the incoming rival presidency/prime ministers, while benefiting themselves with unsustainable debt. They gave up all public infrastructure like highspeed rail, cheap transportation like Greyhound Buses across american cities, cheap housing, good housing.They gutted our manufacturing and industries, outsourced all our jobs with no better ones for those without jobs to replace them.

Now everything’s going to shit, and they wonder why people are starting to vote in populists and authoritarians, they were sold a great and good ideal of men and women, parliamentarians working together united to deliver the public with better outcomes for everyone in a democracy. Yet now they see them busy with personal enrichment, ideological wars, petty infighting, inaction on key issues.

And then they wonder why people are voting in and then tolerating objectively authoritarian dictators sometimes evil sometimes good who promise to steamroll changes as a monarch/dictator, just in hopes that they just ignore the democratic chaos and finally deliver the public something (even though often they also just personally enrich themselves or make the problems worse) we lost our prosperity, authoritarians promised us prosperity if we give away our freedoms now most of us are going to lose both at current trajectory. All because of petty infighting and laziness and lack of patriotism among politicians.

European and American society will need another cold war of ideologies with them on one side to actually defend and work for common citizens again, they wont do it until then, they’ll only do the bareminimum while continuing their petty fights and lectures as “leaders”.

[0](https://thefederalist.com/2019/11/13/how-a-russians-grocery-...)

Re: The time bomb in the tax code that's fueling mass tech layoffs

#870
post #747

Earlier quoted context omitted.

You're right, the law text doesn't specifically call out the Windows operating system or the Linux operating system. The example you gave of Open Source Windows drivers is valid. The Grandparent's point about that "it double-dings open source developers" is still correct and poignant even with this clarification.

> The Grandparent's point about that "it double-dings open source developers" is still correct and poignant even with this clarification. I feel like I'm missing what subset of people this is, exactly. We're talking about businesses here that would struggle with these tax rules. Which I guess is, mainly, contractors or startups. How common is it for such businesses to release their software as open-source, vs. as clo…

There are lots of small OSS businesses that are contractors to the big companies you mention. My go-to example is Igalia, who work on web browser and other core OSS tech, but there lots of others, some mentioned on the FOSSjobs wiki.

https://www.igalia.com/ https://github.com/fossjobs/fossjobs/wiki/resources

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