4 ms·

That sounds pretty horrible. Am I correct in assuming though that once you get over the five year hump, you're OK? Also wouldn't startups mostly be paying devs

• mwint 4y ago
  Only if you’re not growing.
• mikeytag 4y ago
  No. If you are growing and increasing expenses you’re always behind. The only case where you get ahead is if you stop growing or shrink.
  • deleted 4y ago
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  • jart 4y ago
    That makes sense, thanks for clarifying. How do you think businesses would react to this? For example, I imagine self-hosted servers would need to be depreciated too, so the tech community invented cloud as the solution. Maybe this policy change will cause tech companies to hire more TVCs rather than FTEs?
    • pclmulqdq 4y ago
      Contractor expenses to develop software are also R&D. As would cloud expenses for your test environment, probably. More likely, companies will engage in activities that are arguably not "software development," including things like maintaining existing software.
      • asvitkine 4y ago
        Presumably if a company doesn't build software in-house and "buys a product", then that's not R&D? Then, the companies making said "products" would be based in countries that don't have such draconian laws...
    • cwalv 4y ago
      Have your 'office manager' do everything with 'no code' environments .. maybe with them using some sort of java to 'no code' compiler for parts.
• foobarbazetc 4y ago
  No, you never “catch up” unless you fire every software engineer (so income and trailing five years of amortization cancel out). Year 5 is just a steady state of no more phantom profit taxes, but you never really get that extra tax you paid back if you want to keep operating at the same level or grow.
  • deleted 4y ago
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  • pcthrowaway 4y ago
    > No, you never “catch up” unless you fire every software enginee So Musk was following a playbook after all...