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... growing firms are also penalized. Also, if a company goes bankrupt (like the majority of companies), those last 4 years of amortization just go into the go
by KMag 3y ago
... growing firms are also penalized. Also, if a company goes bankrupt (like the majority of companies), those last 4 years of amortization just go into the government's pocket. Even if you could ignore the time value of money, it doesn't actually even out over the long run.
- fnordpiglet 3y agoYes. It also penalizes shrinking firms as you simply lose the benefit of amortization if you can’t use it.
- hgsgm 3y agoPenalizes shrinking revenues, not shrinking firms. Shrinking firms who maintain revenue (layoffs!!) do well by winding down tax liability.
- fnordpiglet 3y agoMy bad you’re right!