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Is there another angle to why Section 174 hasnt been restored? Was the government losing too much to this deduction or has it just not been prioritized by sena
by yieldcrv 2y ago
Is there another angle to why Section 174 hasnt been restored?
Was the government losing too much to this deduction or has it just not been prioritized by senators and the tech industry hasnt been organized enough to lobby for it
- walterbell 2y agoIf human labor is tax-equivalent to silicon CapEx, should you invest in human salary, datacenter equipment or deductible LLM subscriptions? Was there any correlation between human layoffs and datacenter owner investments? If LLM subscriptions drive datacenter investment which drive the stock market upward, are Section 174 changes helping the stock market?
- yieldcrv 2y agoSector 174 expired before companies figured out that LLMs would be a hit When 174 expired, it was just random devs at google getting finessed and fired by a chatty compute instance for trying to help it escape. The literal plot of Ex Machina. Conversational LLMs would have never seen the light of day if OpenAI didn’t launch ChatGPT 174 change just steepened a tech employment sector trough completely independently
- walterbell 2y agoSection 174 changes took effect in 2022. ChatGPT launched at the end of 2022. https://www.google.com/finance/quote/NVDA:NASDAQ?window=5Y https://www.google.com/finance/quote/NVDA:NASDAQ?window=5Y
- yieldcrv 2y agoNow think about that critically Do you think senators logged into chatgpt and were like ah ok gpus and datacenters Section 174 amortization was passed in 2017 and came into affect the beginning of 2022 and tech companies panicked edit: 2018
- walterbell 2y agoSection 174 was passed in 2018, giving investors 4 years to adjust strategy. It took effect in the 2022 tax year.
- TeMPOraL 2y agoI thought it's the end of zero interest-rate policy, also in 2022, that made the industry panic and started the massive layoffs waves. Are Section 174 amortization and the end of ZIRP two independent changes that coincidentally came into effect at the same time, or are they somehow related?
- yieldcrv 2y agoTech got a double and triple whammy, not related just happened at the same time
- anon373839 2y agoI have a few theories. One is that Washington has been looking to knock Silicon Valley down a peg, for various reasons. Another is that big tech incumbents prefer this arrangement because it blunts the competitive bite of scrappy upstarts. A third is that Republicans are too busy sucking up to Trump, and Democrats are too busy rage tweeting, for any of them to do anything useful.
- disgruntledphd2 2y agoIt was just a dumb compromise to get a budget over the line, and then Congress couldn't ever fix it.