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The best solution is to incentivise investment by setting its tax rate to 0. That's what Trump's cash-flow tax would have done. Higher taxes on the money printi
by baazaa 3y ago
The best solution is to incentivise investment by setting its tax rate to 0. That's what Trump's cash-flow tax would have done. Higher taxes on the money printing ventures (Google ads etc.), lower taxes on start-ups and companies developing new products. That would be besides all of the other benefits like preventing profit-shifting.
Maybe if Silicon Valley wasn't so intensely ideological it would have backed the right horse when it came to tax policy. I have very little sympathy here because I think most software developer salaries really are 'development', the problem isn't the classification of developer salaries, it's that the current corporation tax is dumb.
- paulmendoza 3y agoSection 174 software changes was designed to punish blue states in order to pay for tax cuts for the wealthy so their budget would balance.
- baazaa 3y agoYes and I'm talking about the original 2016 house-republican DBCFT proposal which would have eliminated tax on investment in general. Section 174 is a hack to fix a moronic tax that would have been replaced if not for the left. There shouldn't be a section 174 to even amend. And as I said, software development clearly is development, the change makes perfect sense. If you want R&D to be taxed (even with deductions which get amortized), and you work in R&D, you don't get to whinge when a loophole gets closed so you get taxed like other R&D expenses. The people getting bankrupted by this deserve it insofar as they opposed the tax reform bill that would have elegantly solved this problem forever.