If a company has a million dollars in revenue and spends a million dollars on the salaries of software developers, how much tax do you think they should pay in

If a company has a million dollars in revenue and spends a million dollars on the salaries of software developers, how much tax do you think they should pay in that year? 1,000,000 Revenue - 1,000,000 Salary expense ----------- 0 Profit If you said "no taxes!" we're on the same page. The new law would instead work like this: 1,000,000 Revenue - 200,000 1/5th Salary expense ----------- 800,000 Profit Now the company must pay taxes on 800,000 of profit, because "R&D salaries," which includes software devs, must be amortized over five years.