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What they meant was that the R&D was fully deductible, not amortized over a number of years. It's like saying that a business's electricity bill is "tax-free" b
by xhkkffbf 3y ago
What they meant was that the R&D was fully deductible, not amortized over a number of years. It's like saying that a business's electricity bill is "tax-free" because they can deduct it from their revenues immediately.
And as it is, Google certainly paid property taxes immediately on the office building as well as FICA on all of the employees who, of course, paid their own taxes.
But haters of the R&D system love to call it "tax-free".
- mikeyouse 3y agoThere's the benefit of expensing the costs over amortizating them - but there's also straight up cash in the form of R&D tax credits - it's one method tech companies use to minimize their tax bills: https://www.plantemoran.com/explore-our-thinking/insight/2020/08/is-your-business-getting-the-rd-tax-credit-it-deserves https://www.plantemoran.com/explore-our-thinking/insight/202...